Qualcomm (QCOM) Up 9.6% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Qualcomm (QCOM). Shares have added about 9.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Qualcomm due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for QUALCOMM Incorporated before we dive into how investors and analysts have reacted as of late.

Qualcomm Surpasses Q3 Earnings Estimates, Misses on Revenues

Qualcomm reported relatively robust third-quarter fiscal 2025 results, with adjusted earnings exceeding the Zacks Consensus Estimate, driven by healthy demand trends in IoT and automotive businesses. However, revenues missed the consensus estimate despite improving year over year, led by the strength of the business model, diversification initiatives and the ability to respond proactively to the evolving market scenario. 

Net Income

On a GAAP basis, net income in the June quarter improved to $2.67 billion or $2.43 per share from $2.13 billion or $1.88 per share in the prior-year quarter. The increase was primarily attributable to top-line growth. 

Quarterly non-GAAP net income came in at $3.04 billion or $2.77 per share compared with $2.65 billion or $2.33 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 7 cents.

Revenues

On a GAAP basis, total revenues in the fiscal third quarter were $10.36 billion, up from $9.39 billion in the year-ago quarter. The quarterly revenues missed the consensus mark of $10.42 billion. Qualcomm registered record automotive revenues owing to solid momentum in the Snapdragon Digital Chassis platform. Strength within the handset and industrial Internet of Things (IoT) businesses also buoyed the top line. 

Segment Results

Quarterly revenues from Qualcomm CDMA Technologies (QCT) were $8.99 billion, up from $8.07 billion a year ago, as strength in the automotive platform, higher demand in handsets and Snapdragon AR1 chipset within the IoT business aided the top-line growth. The company witnessed solid market traction in the EDGE networking business that helps transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. 

Automotive revenues rose 21% to a record high of $984 million, driven by increased content in new vehicle launches with its Snapdragon Digital Chassis platform, with automakers deploying high-performance, low-power computing and connectivity chips to bring next-generation experience to consumers. Handset revenues jumped 7% to $6.33 billion, led by healthy traction in premium Android handsets enabled by the Snapdragon 8 Elite platform. IoT revenues were up 24% to $1.68 billion on solid demand for the Snapdragon AR1 chipset for the emerging AI smart glasses category. EBT margin for the QCT segment rose to 30% from 27%.

Qualcomm Technology Licensing (QTL) revenues totaled $1.32 billion, up 4% year over year, as it remained the industry's most extensive licensing program of cellular essential patents. EBT margin improved to 71% from 70%. 

Cash Flow & Liquidity

Qualcomm generated $10.02 billion of net cash from operating activities in the first nine months of fiscal 2025 compared with $9.56 billion a year ago. As of June 29, 2025, the company had $5.45 billion in cash and cash equivalents and $14.79 billion of long-term debt. The company repurchased 19 million shares during the quarter for $2.8 billion. 

Guidance

For the fourth quarter of fiscal 2025, Qualcomm expects GAAP revenues of $10.3-$11.1 billion due to solid demand and portfolio strength. Non-GAAP earnings are projected to be $2.75-$2.95 per share, while GAAP earnings are likely to be $2.23-$2.43 per share. Revenues from QTL are expected to be between $1.25 billion and $1.45 billion. For QCT, the company anticipates revenues between $9 billion and $9.6 billion, with 5% sequential growth in handset revenues and relatively flat IoT and automotive revenues sequentially.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in fresh estimates.

VGM Scores

Currently, Qualcomm has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Qualcomm has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Qualcomm is part of the Zacks Electronics - Semiconductors industry. Over the past month, Amkor Technology (AMKR), a stock from the same industry, has gained 9.3%. The company reported its results for the quarter ended June 2025 more than a month ago.

Amkor Technology reported revenues of $1.51 billion in the last reported quarter, representing a year-over-year change of +3.4%. EPS of $0.22 for the same period compares with $0.27 a year ago.

Amkor Technology is expected to post earnings of $0.42 per share for the current quarter, representing a year-over-year change of -14.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

Amkor Technology has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

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This article originally published on Zacks Investment Research (zacks.com).

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