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Research Alert: Qcom: Mar-q Beats; Navigating The Storm As Best As It Can

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

QCOM posted Mar-Q revenues of $10.6B (-3% Y/Y) vs. the $10.4B expected, with Non-GAAP EPS of $2.65 (-7% Y/Y) vs. the $2.56 forecast. The revenue decline reflects memory supply constraints impacting handset demand, with QCT down 4% to $9.1B and handset revenues declining 13% to $6.0B, while QTL was up 5% to $1.4B with 72% margins. QCOM's diversification strategy shows strong momentum with automotive at a record $1.3B (+38% Y/Y) and IoT growing 9% to $1.7B, validating QCOM's strategic pivot toward higher-growth markets. Jun-Q guidance of $9.2B-$10.0B revenues and $2.10-$2.30 EPS compares to consensus estimates of $9.6B/$2.43, reflecting continued memory headwinds. We see progress in data center opportunities with hyperscaler engagement on track for initial shipments in calendar 2026. QCOM expects Chinese handset revenues to trough in Jun-Q before sequential growth in Sep-Q, and announced a new $20B share repurchase authorization, demonstrating long-term confidence.

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