Qualcomm (QCOM) Q2 2023 Earnings
How Did QCOM Stock React to Q2 2023 Earnings?
S&P 500 over the same 30 days: +5.65%.
Did QCOM Beat Earnings? Q2 2023 Results
Yes. Qualcomm reported Q2 2023 earnings of $2.15 a share on May 3, 2023, beating the $2.15 consensus estimate by 0.0%. Revenue was $9.3B against a $9.1B estimate.
Qualcomm matched Wall Street's earnings expectations while edging past revenue estimates in its fiscal second quarter, though the headline numbers masked a steep year-over-year deterioration driven by a punishing smartphone downturn. The chipmaker reported non-GAAP EPS of $2.15, in line with the $2.15 consensus, while revenue of $9.28 billion came in roughly 1.94% above estimates, yet still fell 16.9% from the year-ago period as weak global handset demand and persistent channel inventory drawdowns hammered its core QCT semiconductor segment, which saw revenues slide 17% to $7.94 billion. Automotive remained a rare bright spot, climbing 20% year-over-year to $447 million, underscoring Qualcomm's push to diversify beyond smartphones, a strategy reinforced by its recently announced acquisition of Israeli auto-chip maker Autotalks. Shares fell sharply following the results as management guided Q3 revenues to $8.10 billion to $8.90 billion, with non-GAAP EPS of $1.70 to $1.90, citing a notable sequential QCT revenue decline tied to purchase timing by a key modem-only customer and little sign of near-term recovery in China handset demand.
- Macroeconomic headwinds and weaker global handset demand drove 17% YoY revenue decline
- Channel inventory drawdown across handset and IoT segments
- QCT Automotive revenue grew 20% YoY, the only growth area within QCT
- Restructuring and restructuring-related charges of $212 million in the quarter
“As we navigate this challenging environment, we remain focused on the critical factors we can control to emerge stronger from this downturn – our leading technology roadmap, best-in-class product portfolio, strong customer relationships and operational efficiencies.”
Qualcomm CEO, on the earnings call
What Was Qualcomm's Outlook in Q2 2023?
Qualcomm guided Q3 FY23 total revenues to $8.1B–$8.9B, with Non-GAAP diluted EPS of $1.70–$1.90 and GAAP diluted EPS of $1.24–$1.44. QCT revenues are expected at $6.9B–$7.5B and QTL revenues at $1.15B–$1.35B. The midpoint of guidance reflects continued macroeconomic headwinds, weaker global handset units, and channel inventory drawdown, as well as a larger-than-normal sequential decline in QCT revenues primarily due to the timing of purchases by a modem-only handset customer.
QCOM YoY Financials
| Metric | Q2 2023 | Q2 2022 | Year over year |
|---|---|---|---|
| Revenue | $9.3B | $11.2B | −16.9% |
| Gross Profit | $5.1B | $6.5B | −21.4% |
| Operating Income | $2.1B | $3.9B | −45.8% |
| Net Income | $1.7B | $2.9B | −41.9% |
QCOM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.