Qualcomm (QCOM) Q3 2024 earnings summary

Executive summary

• Q3 FY24 revenue reached $9.4B, up 11% year-over-year, with non-GAAP EPS of $2.33, both above guidance midpoint and up 25% from Q3 FY23.

• QCT revenue was $8.1B, at the high end of guidance, with automotive revenue surging 87% year-over-year to $811M and over 10 new design wins.

• Premium handset and PC segments saw robust AI-driven demand, with Copilot+ PC launch exceeding expectations and premium tier expansion in China.

• Returned $2.3B to shareholders via $1.3B in buybacks and $949M in dividends.

• Signed long-term licensing agreements with Honor and Apple, and announced collaboration with Aramco for industrial IoT and AI solutions.

Financial highlights

• QCT (chipset) revenue: $8.1B; QTL (licensing) revenue: $1.3B; QCT EBT margin: 27%; QTL EBT margin: 70%.

• Non-GAAP EBT grew 25% year-over-year to $3.0B; non-GAAP net income rose to $2.6B.

• Handset revenues increased 12% to $5.9B; IoT revenues declined 8% to $1.4B.

• Non-GAAP operating expenses were $2.2B; effective tax rate was 13%.

• Cash and cash equivalents at quarter-end were $7.77B.

Outlook and guidance

• Q4 FY24 revenue guidance: $9.5B–$10.3B; non-GAAP EPS: $2.45–$2.65.

• QCT revenue expected at $8.1B–$8.7B; QTL revenue: $1.35B–$1.55B; QCT EBT margin: 27%–29%.

• On track for ~20% non-GAAP EPS growth for FY24 versus FY23 and ~50% YoY automotive revenue growth.

• Guidance reflects a 14-week quarter and includes certain tax benefits and acquisition-related items.

• QCT handset revenue expected to grow low single digits sequentially; IoT to grow low double digits; automotive to remain flat.