Qualcomm 2Q Sales Rise on Automotive, Internet of Things Growth

By Kelly Cloonan

Qualcomm logged higher revenue in its latest quarter, boosted by growth in its automotive and internet of things segments, as it contends with pressure from a shortage of memory supply.

The semiconductor company also gave a forecast for the current quarter that came in below Wall Street's expectations.

The stock fell 2.7%, to $151.88, in after-hours trading.

The company posted a fiscal second-quarter profit of $7.37 billion, or $6.88 a share, compared with $2.81 billion, or $2.52 a share, a year earlier. The recent quarter's figure includes a $5.7 billion income tax benefit, or $5.33 per share, from the release of a valuation allowance, the company said.

Adjusted earnings per share were $2.65, compared with estimates of $2.56 a share according to analysts polled by FactSet.

Revenue rose 3% to $10.6 billion, compared with analyst estimates of $10.59 billion.

The growth was driven by higher sales in the company's automotive and internet of things segments. However, sales in the company's handset segment fell 13%.

Chief Executive Cristiano Amon said the company is navigating a challenging memory environment, and is in the midst of industry-wide transformation amid the rise of AI agents.

The company is also on track to begin initial shipments later this calendar year for a leading hyperscaler, Amon said.

For the current quarter, the company expects adjusted earnings per share of $2.10 to $2.30 and revenue of $9.2 billion to $10 billion. Analysts expect adjusted earnings of $2.42 per share on revenue of $10.19 billion.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

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April 29, 2026 16:41 ET (20:41 GMT)