Qualcomm delivered adjusted earnings of $3.50 per share in its fiscal first quarter, surpassing consensus forecasts by $0.09. Total revenue climbed 5% year-over-year to $12.25 billion, driven primarily by handset and automotive chipset sales. Handset chip revenue grew 4% on the back of continued 5G smartphone adoption, while automotive segment revenue surged 15% to a record $1.1 billion as major OEMs integrated Snapdragon-based telematics and vehicle-to-everything connectivity solutions.

Management warned that second-quarter revenue is expected in a range of $10.2 billion to $11 billion, below the street’s average forecast, attributing the shortfall entirely to industry-wide shortages of dynamic random access memory. CEO Cristiano Amon explained that high-bandwidth memory allocations to data-center AI customers have reduced DRAM availability for smartphone and IoT customers, prompting some handset makers to delay production plans. Adjusted EPS guidance of $2.45–$2.65 reflects an estimated 10% revenue headwind from memory constraints.

Qualcomm’s Internet of Things business expanded 9% year-over-year as enterprises adopted new edge-AI modules and industrial automation use cases. The company reiterated its goal to achieve $22 billion in combined automotive and IoT revenue by 2029. QCT segment margins remained robust at 31%, supporting a return of capital through dividends and share repurchases. Despite near-term supply challenges, management emphasized strong underlying demand across personal computing, wearable devices and connected vehicles, positioning Qualcomm to benefit from multi-year secular trends in 5G and AI edge processing.