"Qualcomm's Q2 FY26 earnings report revealed a revenue of $10.60 billion, beating estimates by 0.18%, and a non-GAAP EPS of $2.65, exceeding expectations by 3.67%. The automotive sector set a record with $1.33 billion in revenue, reflecting a 38% year-over-year growth, while IoT grew by 9%. This performance led to a significant stock increase of 15.12% on the earnings announcement day."
"CEO Cristiano Amon emphasized that Qualcomm is experiencing a 'profound industry transformation' with significant advancements in custom silicon engagements. The upcoming Investor Day on June 24 is expected to provide insights into the Data Center and Physical AI roadmaps, showcasing the company's diversification efforts beyond handsets, particularly in automotive and IoT sectors."
"Despite the positive outlook, there are risks to consider, including a 13% year-over-year decline in handset revenue due to memory supply constraints and softness in the Chinese OEM market. The guidance for Q3 suggests a revenue range of $9.2 billion to $10.0 billion, indicating a potential sequential decline, which could impact investor sentiment."
Qualcomm reported Q2 FY26 earnings with revenue of $10.60 billion, surpassing estimates. The stock has rebounded significantly, gaining 39.45% in the past month. Automotive and IoT segments showed growth, while handsets declined due to supply issues. The company is undergoing a transformation with new silicon engagements and plans for an Investor Day. Despite risks from handset revenue decline and guidance for lower future earnings, the bull-case scenario suggests a price target of $217.76 within a year.
Read at 24/7 Wall St.
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