Net income during the quarter was $1.49 billion or $1.32 per share, a 48% decrease from last year’s $2.87 billion or $2.54 per share.
Revenue during the quarter declined 24% year-over-year from $11.39 billion last year. Overall adjusted revenue for Qualcomm’s fiscal year fell 19% from last year to $35.83 billion. Qualcomm’s fortunes are tied to the smartphone industry, which has been in a slump for nearly two years after the Covid pandemic created a boom in sales. It makes the processors at the heart of most high-end Android devices and many lower-end phones as well.
Handset chip sales declined 27% to $5.46 billion, above Street Account expectations of $5.34 billion. They’re reported as part of QCT, Qualcomm’s biggest division that sells processors, which declined 26% to $7.37 billion in sales during the quarter. headtopics.com
The company’s automotive business was a bright spot for QCT, increasing 15% year-over-year to $535 million in sales during the quarter, beating Wall Street expectations. It’s still a small business but continues to grow as Qualcomm convinces more automakers and parts manufacturers to use its chips in cars.
Qualcomm’s “Internet of Things” business, which also includes the chips Meta uses in its Quest headsets, declined 31% year-over-year to $1.38 billion in revenue. The company’s profitable licensing business, QTL, reported $1.26 billion in sales, a 12% decrease from last year, in line with Street Account expectations. headtopics.com
Qualcomm is eager for investors to see it as an artificial intelligence company, given that it ships chips with AI features to millions of smartphones, and could benefit from Wall Street’s recent obsession with semiconductor stocks for machine learning.with improved AI portions called NPUs that could generate AI images significantly faster than last year’s processors.