Qualcomm's (QCOM) Strong Q3 Performance Shows Resilience-But Apple's Exit Could Hurt

QUALCOMM Incorporated (NASDAQ:QCOM) is one of the AI Stocks Investors Should Keep an Eye On. On July 31, Qualcomm reported fiscal third-quarter earnings, beating Wall Street expectations. The company reported adjusted earnings per share of $2.77, surpassing the LSEG consensus estimate of $2.71. Revenue for the quarter came in at $10.37 billion, ahead of the expected $10.35 billion.

Looking ahead, the company’s revenue guidance for Q3 CY2025 is $10.7 billion at the midpoint, above analyst estimates of $10.61 billion. Adjusted EPS guidance is $2.85 at the midpoint, above analyst estimates of $2.82.

However, the reliance on high-end smartphone chip sales and the likelihood of losing Apple as a customer for its modem business in the coming years drove down the optimistic quarterly forecast for the modem chips supplier. The company has warned that when Apple goes away, it will impact its chip segment revenue.

Qualcomm reported that its chip segment revenue from non-Apple customers has climbed more than 15% so far. According to William McGonigle, analyst at Third Bridge, the chip segment sales increase, excluding Apple, “is largely driven by ASP (average selling price) uplift from flagship Android launches rather than broad-based volume recovery.”

QUALCOMM Incorporated (NASDAQ:QCOM) develops wireless technologies, supplies chips for mobile, automotive, and IoT, licenses patents, and invests in emerging tech.

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