Qualcomm Posts Record Revenue As Analysts Flag Huawei, Tariff Risks

Shares of Qualcomm Inc QCOM were trading lower on Thursday, despite the company reporting record revenues for its fiscal first quarter.

The company reported its quarterly results amid an exciting earnings season. Here are some key analyst takeaways.

JPMorgan On Qualcomm

Analyst Samik Chatterjee maintained an Overweight rating, while cutting the price target from $200 to $195.

Qualcomm reported revenues of $11.7 billion, beating consensus of $10.9 billion, Chatterjee said in a note. Robust QCT (Qualcomm CDMA Technologies) revenues of $10.1 billion were driven by better-than-expected Handsets revenues, "led by robust demand in China and share gains with Samsung, and IoT," he added.

The company lowered its full-year estimates on a weaker outlook for QTL (Qualcomm Technology Licensing) and "limited carry forward of QCT momentum in F1Q," the analyst wrote. Qualcomm expects QTL revenues to track flat due to the expiry of the agreement with Huawei, he further stated.

Cantor Fitzgerald On Qualcomm

Analyst C.J. Muse reiterated a Neutral rating and price target of $160.

Qualcomm delivered a "very clean and solid report," with a revenue beat of around $700 million, helping the significant earnings outperformance of $3.41 per share versus consensus of $2.97 per share, Muse said. The company's earnings guidance for the fiscal second quarter of $2.80 per share also came in higher than consensus of $2.69 per share, he added.

Concerns around the impact of potential tariffs on handsets exerted pressure on the stock, the analyst stated. The stock was also impacted by the expiry of the Huawei license and management highlighting expectations for Apple Inc AAPL share "to be 20-100% in CY25, fall to 20% in CY26 and then zero in CY27," he further wrote.

Check out other analyst stock ratings.

Rosenblatt Securities On Qualcomm

Analyst Kevin Cassidy reaffirmed a Buy rating and price target of $250.

Qualcomm reported record revenue of $11.7 billion, up 18% year-on-year, and non-GAAP earnings of $3.41, up 24%, Cassidy said. QCT revenue jumped 36% year-on-year to a record $10.1 billion, "driven by premium Android handsets, record automotive revenue, and strong IoT growth," he added.

Qualcomm remains on track to generate non-handset revenues of $22 billion by 2029, "with on-device AI adoption accelerating across mobile, computing, automotive, and IoT," the analyst stated. "The company is in licensing negotiations which may have management providing flat Y/Y QTL revenue growth which we see as conservative," he further wrote.

BofA Securities On Qualcomm

Analyst Tal Liani maintained a Buy rating and price target of $245.

Qualcomm delivered robust results, with broad-based strength, Liani said. QCT's revenues grew 19.7% year-on-year, significantly higher than Street expectations of 10.9%, he added.

While some aspects of the quarter's robust demand "might not be sustainable, especially the China strength and impact of Samsung share gains," the results highlight the company's "ability to lead with smartphone technologies and diversify its portfolio into Automotive and Compute," the analyst stated.

QCOM Price Action: Shares of Qualcomm were down 4.8% to $167.36 at the time of publication on Wednesday.

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