10-QPeriod: Q2 FY2024

QUALCOMM INC/DE Quarterly Report for Q2 Ended Mar 24, 2024

Filed May 1, 2024For Securities:QCOM

Summary

Qualcomm Inc. reported solid financial results for the fiscal second quarter ended March 24, 2024, with total revenues of $9.39 billion, a slight increase of 1% year-over-year. Net income saw a significant jump of 37% to $2.33 billion, reflecting improved operational efficiency and strong performance in key segments. The company's diversified business model, with contributions from both its semiconductor (QCT) and licensing (QTL) segments, continues to demonstrate resilience. QCT revenues grew 1% driven by stronger performance in automotive and handsets, although partially offset by a decline in IoT. The QTL segment also saw a modest 2% increase in revenues, indicating sustained demand for its intellectual property. The company continued to return capital to shareholders through dividends and share repurchases, signaling confidence in its future financial health. Management remains focused on capitalizing on 5G technology and expanding into new markets like automotive and IoT, while navigating ongoing competitive and geopolitical landscapes.

Financial Highlights

48 data points
Beta

Revenue

$9.39B

56.3% Gross Margin

Net Income

$2.33B

24.8% Net Margin

EPS (Diluted)

$2.06

Total Assets

$53.17B

Cash & Equivalents

$9.22B

Free Cash Flow

$3.55B

Financial Statements
Beta
Revenue$9.39B
Cost of Revenue$4.11B
Gross Profit$5.28B
R&D Expenses$2.24B
SG&A Expenses$707.00M
Operating Expenses$7.05B
Operating Income$2.34B
Interest Expense$172.00M
Net Income$2.33B
EPS (Basic)$2.08
EPS (Diluted)$2.06
Shares Outstanding (Basic)1.12B
Shares Outstanding (Diluted)1.13B

Key Highlights

  • 1Total revenues of $9.39 billion, up 1% year-over-year.
  • 2Net income of $2.33 billion, a substantial increase of 37% year-over-year.
  • 3QCT (Qualcomm CDMA Technologies) segment revenue increased by 1% to $8.03 billion, driven by automotive and handset growth.
  • 4QTL (Qualcomm Technology Licensing) segment revenue increased by 2% to $1.32 billion.
  • 5Diluted earnings per share (EPS) rose to $2.06 from $1.52 in the prior year's quarter.
  • 6The company announced an increase in its quarterly dividend per share from $0.80 to $0.85.
  • 7Total assets increased to $53.17 billion from $51.04 billion year-over-year.

Frequently Asked Questions

Qualcomm reported total revenues of $9.39 billion, a 1% increase compared to the prior year's quarter. Net income significantly increased by 37% to $2.33 billion, demonstrating improved profitability.

The QCT segment's revenue grew 1% to $8.03 billion, primarily due to higher automotive and handset revenues, though offset by lower IoT revenues. The QTL segment saw a 2% increase in revenue to $1.32 billion.

Qualcomm expects certain IoT customers to continue drawing down inventory, which will negatively impact revenues in the near term. The company also anticipates its own inventory levels will remain elevated.

Qualcomm is actively returning capital through share repurchases and dividends. The company announced an increase in its quarterly dividend to $0.85 per share and has $3.6 billion remaining under its stock repurchase program.