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Qualcomm is pulling back sharply after reporting fiscal Q1 (Dec) results that topped expectations, but issuing weaker-than-expected Q2 (Mar) guidance due to supply constraints. While QCOM delivered record EPS and revenue, the outlook echoed cautionary commentary recently heard from Apple (AAPL). Qualcomm reported a solid beat for fiscal Q1 (Dec), delivering record EPS and revenue, but shares are pulling back after the company issued softer-than-expected fiscal Q2 (Mar) guidance as handset OEMs turn more cautious amid supply constraints.

• Revenue grew 4.7% yr/yr to $12.25 bln, reaching a new quarterly record and highlighting steady demand despite a mixed macro backdrop.
• The high-margin QTL licensing business continued to provide stability, with revenue of $1.59 bln and an EBT margin of 77%, supported by healthy unit volumes and favorable mix.
• In the core QCT chipset segment, revenue reached a record $10.6 bln, driven by broad-based strength in Automotive and IoT and solid momentum in premium-tier smartphones.
• Handset revenue of $7.8 bln benefited from flagship device launches, though management noted early signs of more conservative ordering behavior from OEMs.
• IoT and Automotive remained key growth engines, with IoT revenue of $1.7 bln and Automotive revenue of $1.1 bln, reinforcing Qualcomm's diversification strategy.
• Looking ahead, management flagged near-term uncertainty as rising memory demand from AI data centers pressures supply and pricing, prompting some OEMs—particularly in China—to scale back build plans and chipset orders.

Briefing.com Analyst Insight:

Qualcomm delivered a solid fiscal Q1 with record revenue and earnings, but the market is focused squarely on the weaker MarQ outlook. The guidance reflects a temporary disconnect between end demand and OEM behavior, as memory supply constraints tied to AI data center buildouts force handset manufacturers to act cautiously. While QCOM's diversification into Automotive and IoT remains a bright spot and continues to post strong growth, the stock is likely to trade on near-term handset uncertainty rather than longer-term positioning in edge AI. We view the current setup as a pause in an otherwise intact growth story, but supply visibility will need to improve before sentiment meaningfully recovers.