Qualcomm Q1 Revenue: $9.92B, Record Automotive Chip Sales

On February 1st, Qualcomm, a leading processor manufacturer, announced its financial results for the first quarter of the fiscal year 2024, concluding on December 24, 2023, post the closing of the US stock market on January 31.

In Q1 of the 2024 fiscal year, Qualcomm reported a Non-GAAP revenue of $9.922 billion, indicating a 5% YoY growth. The Non-GAAP diluted earnings per share stood at $2.75, reflecting a notable 16% YoY increase.

In comparison to analyst projections by LSEG, Qualcomm's Q1 Non-GAAP revenue surpassed expectations, which were estimated at $9.51 billion, with Non-GAAP diluted earnings per share at $2.37.

Segment-wise performance breakdown is as follows:

Qualcomm Technology Licensing (QTL) reported Q1 revenue of $1.46 billion, showing a 4% YoY decrease. The pre-tax profit margin increased by 1 percentage point to 74%, with pre-tax profit at $1.08 billion, reflecting a 3% YoY decline.

Qualcomm CDMA Technologies (QCT), the semiconductor arm, registered Q1 revenue of $8.423 billion, indicating a robust 7% YoY growth. The pre-tax profit margin grew by 3 percentage points to 31%, resulting in a pre-tax profit of $2.593 billion, up 19% from the previous year.

Breaking down QCT's revenue:

Mobile chip revenue reached $6.687 billion, marking a substantial 16% YoY increase.

Automotive chip revenue set a record at $598 million, demonstrating a significant 31% YoY increase.

Internet of Things (IoT) chip revenue was $1.138 billion, experiencing a 32% YoY decrease.

While Qualcomm's smartphone chip business historically held significance, the quarterly performance is inevitably influenced by fluctuations in smartphone demand. Despite this, Qualcomm achieved a remarkable 16% YoY growth in smartphone chip revenue during this quarter, driven by sustained growth in the high-end smartphone market and Qualcomm's strong market position. The company's strategic expansion into the automotive and personal computer chip markets is evident in the impressive performance of its automotive chip business in Q1.

Looking ahead to the second quarter of the fiscal year 2024, Qualcomm anticipates revenue to be between $8.9 billion and $9.7 billion, closely aligning with analysts' expectations of $9.36 billion. Non-GAAP diluted earnings per share are expected to range between $2.20 and $2.40, slightly exceeding analysts' anticipated $2.26.

For QTL, revenue is estimated to range between $1.2 billion and $1.4 billion, slightly below the analysts' average expectation of $1.4 billion. QCT revenue for the quarter is estimated to range between $7.6 billion and $8.2 billion, slightly below analysts' average expectation of $8.1 billion, according to FactSet.