Qualcomm projects 15% earnings growth in next earnings announcement

Qualcomm is expected to announce its earnings on July 30, 2025, revealing a consensus forecast of $2.71 earnings per share, which would represent a 15% increase compared to the previous year. This surge in earnings is coupled with a projected revenue increase of around 10%, reaching approximately $10.3 billion. The anticipated growth is largely attributed to Qualcomm's CDMA Technologies division, which is successfully adapting to the rising demand for advanced chipset technology among smartphone manufacturers. The company is also diversifying its product offerings by venturing into the automotive and Internet of Things (IoT) sectors. Their automotive sector has shown impressive growth, achieving a remarkable 59% year-over-year increase, equating to $959 million in revenue, which indicates the increasing adoption of Qualcomm's chips in vehicles. Similarly, the IoT segment also demonstrated substantial growth, reporting a 27% increase with revenue soaring to $1.58 billion. This diversification strategy complements the company’s traditional mobile device market, where the demand for premium chipsets, particularly the Snapdragon 8 Elite, has been rising as smartphone manufacturers such as Samsung, Vivo, and Oppo incorporate them into their flagship models. Despite facing challenges due to import tariffs on semiconductor components, Qualcomm has stated that it does not expect significant adverse effects from recent changes in tariff regulations. The firm maintains a solid market capitalization of $175 billion and has reported $42 billion in revenue and a net income of $11 billion over the last twelve months. It further indicated that operational profitability remains intact with $12 billion in operating profits. As traders prepare for the upcoming earnings announcement, understanding historical performance patterns could provide insights into potential market reactions. Over the past five years, Qualcomm has documented 20 earnings data points, with a 40% observation of positive one-day post-earnings returns. However, this figure has notably decreased to 17% when focusing on the latest three years. The upcoming earnings report will be a key indicator of Qualcomm’s financial health and investor sentiment. The anticipated performance outcomes will not only affect immediate stock reactions but could also shape market perceptions of Qualcomm’s long-term prospects, particularly as it positions itself across multiple flourishing sectors. Investors and analysts are closely monitoring these developments, as they may significantly influence trading strategies and investment decisions in the semiconductor industry at large.