Qualcomm to report Q2 earnings, as smartphone market faces steep declines

1 hour ago 1

Fresh disconnected a study that it’s moving connected a smartphone spot with OpenAI, Qualcomm (QCOM) volition study its 2nd 4th net connected Wednesday.

According to TF International Securities expert Ming-Chi Kuo, Qualcomm’s OpenAI spot volition spell into wide accumulation successful 2028, arsenic the AI Lab looks to bash thing Amazon (AMZN), Meta (META), and Microsoft (MSFT) person failed to do: ace the Apple (AAPL) and Google (GOOG) smartphone duopoly.

But Kuo’s study comes astatine a hard clip for the smartphone market, arsenic the planetary representation situation cuts into supplies, expanding prices and eroding request for entry-level devices.

According to the International Data Corporation, planetary smartphone shipments declined 4.1% successful the archetypal 4th to 289.7 cardinal units. That broke a 10-quarter streak of maturation that began successful mid-2023.

Worse still, the marketplace probe steadfast says the archetypal 4th driblet is simply a “mild precursor” for what the remainder of 2026 has successful store for the market.

According to Bernstein Research’s Stacy Rasgon, the broader smartphone abstraction could look double-digit portion declines this year.

NasdaqGS - Nasdaq Real Time Price USD

154.07 +4.07 (+2.71%)

As of 12:10:01 PM EDT. Market Open.

Qualcomm’s handset concern makes up the immense bulk of its wide revenue, though it’s moving to diversify into different areas including information halfway spot income and progressively pushing its automotive and robotics technologies.

But Rasgon says those efforts are improbable to offset the driblet successful smartphone shipments.

For the 2nd quarter, Qualcomm is expected to study net per stock (EPS) of $2.55 connected gross of $10.56 billion, according to Bloomberg expert statement estimates. That’s down from the aforesaid 4th past year, erstwhile the institution saw EPS of $2.85 and gross of $10.83 billion.

Wall Street is anticipating the largest diminution from Qualcomm’s handset segment, which is pegged to driblet 12.5% year-over-year to $6.05 billion.

Overall, the company’s QCT business, which includes handset, automotive, and internet-of-things revenue, is acceptable to diminution 3.5% to $9.13 billion.

Qualcomm’s licensing conception income volition apical retired astatine $1.32 billion.

The institution could, however, supply Wall Street with immoderate bully quality successful June, erstwhile CEO Cristiano Amon provides the keynote code astatine the yearly Computex league successful Taiwan.

Titled “AI Together,” the code could connection up a amended look astatine Qualcomm’s information halfway strategy, and however it plans to summation stock successful the space.