Qualcomm (NASDAQ:QCOM) Earnings Preview and Strategic Growth Insights

Qualcomm is set to announce its Q3 fiscal 2025 earnings with expected revenue of $10.36 billion and EPS of $2.68. Bernstein reiterates an "Outperform" rating, highlighting confidence in Qualcomm's strategic focus on premium handsets and automotive sectors. The company's expansion into the automotive and IoT sectors, along with a 59% YoY growth in automotive revenue, underscores its successful diversification strategy.

Qualcomm (NASDAQ:QCOM) is a leading player in the semiconductor industry, known for its innovative technologies in mobile and wireless communications. The company is set to announce its third-quarter fiscal 2025 earnings on July 30, with expectations of $10.36 billion in revenue and earnings per share of $2.68. Despite a slight decline in earnings estimates for fiscal 2025 and 2026, Qualcomm has consistently surpassed earnings expectations, with an average surprise of 6.43% over the past four quarters.

Bernstein reiterated its "Outperform" rating for Qualcomm on July 28, 2025, with the stock priced at $161.20. This rating suggests confidence in Qualcomm's future performance, even as the company faces challenges from growing competition in the mid-range smartphone market. Low-cost chipmakers are exerting margin pressure, but Qualcomm's strategic focus on premium handsets and automotive sectors is expected to drive growth.

Qualcomm's CDMA Technologies division is a key driver of its anticipated growth, producing chips for mobile devices. Analysts forecast a 15% increase in earnings per share to $2.71, with revenue expected to grow by 10% to $10.3 billion. The demand for premium chipsets, such as the Snapdragon 8 Elite, is rising as manufacturers like Samsung, Vivo, and Oppo adopt these advanced technologies.

Beyond mobile, Qualcomm is expanding into the automotive and IoT sectors. The company's chips are increasingly integrated into vehicles and devices like Meta’s Quest VR headsets and Windows PCs. In the previous quarter, Qualcomm reported a significant 59% year-over-year growth in its automotive sector, achieving $959 million in revenue, highlighting its successful diversification strategy.

Qualcomm is recognized as one of the most affordable large-cap semiconductor stocks, especially compared to industry giants like NVIDIA and AMD. Despite its attractive valuation, Qualcomm's shares have not experienced the same level of movement as its larger peers. However, recent developments suggest a potential change, with the stock rising nearly 30% since April. Investors are optimistic about Qualcomm's upcoming earnings report, which could further influence the stock's trajectory.