Overview
- Fiscal Q3 revenue reached about $1.24 billion with adjusted EPS of $0.43, both above consensus.
- Royalty revenue set a record at $737 million, up 27% year over year, tied to AI computing across data centers, smartphones, and edge devices.
- Licensing revenue came in at $505 million versus roughly $520 million expected, renewing questions about the pace of future design wins.
- Shares dropped roughly 7%–10% in after-hours trading as Qualcomm flagged a memory shortage that could pressure smartphone units, a key royalty driver.
- The stock later climbed about 5% on Thursday as several analysts played down near-term smartphone demand risks and highlighted adoption of Armv9 and CSS technologies.