Qualcomm Stock Drops Despite Record Revenue and Strong Guidance

Investor concerns over licensing revenue and Apple’s shift to in-house technologies overshadow Qualcomm's growth in AI and other segments.

Qualcomm reported record fiscal Q1 revenue of $11.67 billion, up 17% year-over-year, and adjusted earnings of $3.41 per share, both exceeding analyst expectations.
The company’s QCT chip segment saw 20% growth, driven by strong sales in handsets, automotive, and IoT markets, including a major deal with Samsung for flagship devices.
Licensing revenue (QTL) rose 5% year-over-year but fell short of forecasts, with flat growth projected following the expiration of a key Huawei agreement.
Investors expressed concerns about Apple’s plans to move some iPhone components in-house and the lack of a near-term smartphone upgrade cycle.
Qualcomm emphasized its leadership in on-device AI and diversification into automotive and PC markets, projecting strong Q2 guidance above Wall Street estimates.