Qualcomm has reported robust fiscal first-quarter results, surpassing analysts' expectations with impressive growth across various sectors. The company's adjusted earnings ranged from $2.70 to $2.90 per share, while net income increased by 15% to reach $3.18 billion. Qualcomm's revenue for the quarter rose by 18% from $9.92 billion a year ago, hitting $11.67 billion, which exceeded LSEG consensus estimates.
The company's Internet of Things (IoT) business experienced significant growth, rising by 36% to $1.55 billion. Additionally, Qualcomm's QCT division, responsible for sales of physical chips, saw a 20% increase, resulting in $10.1 billion in revenue. Notably, the automotive business surged by 61%, generating $961 million in sales. The mobile handset market, a crucial sector for Qualcomm, grew by 13% on an annual basis to $7.57 billion, outperforming analysts' projections of $7.04 billion.
Qualcomm's earnings per share were reported at $3.41, adjusted, compared to the $2.96 estimated by analysts. The company's total revenue of $11.67 billion also surpassed the estimated $10.93 billion. During the quarter, Qualcomm allocated $942 million for dividend payments and invested $1.8 billion in share repurchases.
Qualcomm's CEO, Cristiano Amon, highlighted the significant demand from Chinese customers for high-end "premium-tier" smartphones as a driving factor in the company's success. Looking ahead, Qualcomm anticipates revenue of between $10.2 billion and $11 billion for the March quarter, with the midpoint of this range exceeding LSEG expectations of $10.34 billion.