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Qualcomm shares fall after-hours despite Q3 revenue beat

Revenue topped estimates, but Q3 earnings and forward guidance came in weaker, sending the stock down about 4% in after-hours trading on Wednesday.

Reported · Written up by our desk · Results

Qualcomm Inc reported Q3 results on July 29 that delivered a comfortable revenue beat, helped by growth across the company’s push beyond smartphones. However, investors focused on mixed earnings and a quarter-ahead guidance outlook that landed below Wall Street expectations, and the shares fell about 4% in Wednesday’s after-hours session, MarketBeat Ratings said.

The company’s Automotive business was the standout, with revenue surging more than 60% year-over-year, prompting management to raise its outlook for the segment again. Qualcomm’s Internet of Things business also grew, which helped offset pressure in the Handset segment, where revenue dropped 20%.

Qualcomm also pointed to progress on its data center plans, with management confirming that first custom silicon shipments for data centers are expected in the current quarter. At the same time, the report reflected rising capital expenditures, as spending climbs to support these longer-term efforts.

MarketBeat Ratings said the key question for investors is whether the improvements in Automotive, IoT, and data center momentum are enough to outweigh near-term headwinds, particularly as CapEx increases while data center revenue remains a timeline-dependent story.

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