Qualcomm is expected to post Q2 EPS of $2.55 on $10.56 billion in revenue, down from $2.85 and $10.83 billion a year earlier. Handset revenues are forecast to drop 12.5% year-over-year to $6.05 billion, driving a 3.5% decline in the QCT segment to $9.13 billion, while licensing sales should reach $1.32 billion.

Global smartphone shipments fell 4.1% in Q1 to 289.7 million units, ending a ten-quarter growth streak as elevated memory prices cut supply and eroded entry-level demand. Broader industry forecasts signal double-digit declines for the remainder of the year, intensifying pressure on Qualcomm’s core handset business.

Qualcomm aims to diversify beyond smartphones through data center chip development slated for mass production in 2028, alongside growing automotive and IoT technology sales. These initiatives seek to mitigate reliance on handset revenues and capture share in high-growth segments.

CEO Cristiano Amon will deliver the ‘AI Together’ keynote at Computex in June, offering potential updates on Qualcomm’s data center strategy. Investors will watch for insights on chip performance benchmarks, partner integrations and roadmaps for AI workloads.