Qualcomm shares jump 8% after Q2 EPS beat and data center deal
Qualcomm delivered non-GAAP Q2 EPS of $2.65, topping estimates, while revenue fell 3.6% to $10.59 billion, roughly matching forecasts. The company projected Q3 revenue of $9.2–10 billion and EPS of $2.10–2.30 and said custom data center chip shipments will begin in December after securing a leading hyperscaler customer.
1. Q2 Financial Results
Qualcomm posted non-GAAP EPS of $2.65 in Q2, beating consensus, while revenue declined 3.6% to $10.59 billion, roughly in line with analyst forecasts. Smartphone demand softness weighed on sales, though earnings outperformance underscored margin resilience.
2. Data Center Expansion
The company secured a leading hyperscaler customer for custom data center CPUs and AI inference accelerators, with shipments slated to start in the December quarter. CEO Cristiano Amon emphasized multiple hyperscaler and AI-related opportunities as Qualcomm builds out its server chip portfolio.
3. Guidance and Outlook
Qualcomm forecasted Q3 revenue of $9.2–10 billion and adjusted EPS of $2.10–2.30, below Street estimates, reflecting continued smartphone headwinds. Management highlighted that data center momentum and AI initiatives will be key drivers of future growth.