Qualcomm Earnings (QCOM) On Deck, With Stock Stair Stepping Higher – What To Expect

Qualcomm is set to unveil its fiscal third-quarter earnings report after market close today, with the stock price (NASDAQ: QCOM) slowly stair stepping higher.

Wall Street consensus points to an earnings per share (EPS) of $2.71, a robust 16.3% jump from the same quarter last year. Revenue projections stand at $10.35 billion, marking a healthy 10.24% year-over-year growth.

These expectations are fueled by Qualcomm's expanding footprint in the Internet of Things (IoT), automotive, and artificial intelligence (AI) sectors.

Qualcomm's recent track record suggests a potential for exceeding expectations.

In the previous quarter, the company reported an adjusted EPS of $2.85, nudging past the $2.82 consensus. Revenue also surprised on the upside, reaching $10.84 billion compared to the anticipated $10.66 billion.

The automotive segment, in particular, shone with a remarkable 59% year-over-year surge, generating $959 million in sales, while the IoT segment expanded by 27% to reach $1.58 billion.

The company's strategic moves have positioned it for continued growth.

The introduction of the Snapdragon 7 Gen 4 Mobile Platform has garnered adoption from leading OEMs like HONOR and vivo, solidifying Qualcomm's position in the mobile space.

Furthermore, Qualcomm's foray into AI-powered PCs is gaining traction.

The Snapdragon X Elite processors have already captured approximately 9% of the premium Windows laptop market in the U.S. and key European countries during the first calendar quarter of 2025, signaling a successful diversification strategy.

While the prevailing narrative focuses on Qualcomm's diversification and growth in new sectors, it's crucial to consider potential vulnerabilities. The dependence on the mobile market, although strategically augmented, still represents a significant portion of Qualcomm's revenue.

A slowdown in smartphone sales, potentially triggered by economic factors or evolving consumer preferences, could disproportionately impact the company's overall performance.

Qualcomm's stock price has slowly stair stepped it's way back to positive territory on the year, and now trade 5.5% above where it began the turn of the year leading into earnings. Despite this, QCOM remains negative on a 12 month basis, with a 2.9% decline making the stock an underperformer. There may need to be some strong guidance in order to meaningfully shift momentum from here.