QCOM

It has been about a month since the last earnings report for Entegris (ENTG). Shares have lost about 9.8% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Entegris due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Entegris, Inc. reported second-quarter 2026 non-GAAP earnings of 93 cents per share, up 40.9% year over year. The figure beat the Zacks Consensus Estimate of 83 cents by 12.1%, reflecting stronger semiconductor demand, operational execution and accelerating customer capital investment. Net sales increased 11.5% to $883.2 million and topped the consensus estimate of $840 million by 5.2%. Unit-driven revenues rose 10%, while capital expenditure-related revenues advanced 15%, supported by AI-linked investments across advanced logic, memory and packaging. Advanced Purity Solutions revenues climbed 17% year over year to $514.6 million. Growth reflected strength across both unit-driven and capital expenditure-related demand, with liquid filtration delivering a fourth consecutive record quarter. The microenvironments business, led by front-opening unified pods, posted its strongest performance in more than three years. Taiwan benefited from leading-edge logic and advanced packaging expansions, while North America returned to year-over-year growth. Adjusted segment margin expanded to 30.3% from 24.1%. Materials Solutions revenues rose 4.6% year over year to $371.3 million. Advanced deposition materials, selective etch chemistries and chemical mechanical planarization products drove the increase. Adjusted segment profit was $77.7 million, up 2.9%, while adjusted segment margin eased to 20.9% from 21.3%. Higher raw-material and logistics costs, along with planned direct-labor investments, were largely offset by manufacturing improvements and productivity initiatives. Adjusted gross margin expanded to 47.6% from 44.6% a year earlier and improved from 46.9% in the first quarter. Management attributed the sequential gain to operational progress despite investments to support future demand. Non-GAAP operating expenses increased 8.3% year over year to $203.9 million, mainly due to higher variable compensation tied to stronger business performance. Even so, adjusted operating margin widened to 24.5% from 20.9%, and adjusted EBITDA margin rose to 28.4% from 27.3%. The company generated operating cash flow of $156.2 million in the second quarter, while capital expenditures were $39.3 million. Free cash flow totaled $120.3 million in the second quarter, representing roughly 14% of sales and more than doubling from $47 million in the year-ago quarter. In the first half of 2026, Entegris generated operating cash flow of $339.2 million and free cash flow of $263.8 million. ENTG repaid $200 million of debt during the quarter, reducing long-term debt to $3.46 billion. It ended the second quarter with cash and cash equivalents of $353.6 million. The company’s net leverage improved to 3.4 times, and management now expects leverage to finish 2026 below three times. Management raised its 2026 market expectation to 7%-8% growth in million square inches of wafers, up from the mid-single-digit assumption at the start of the year. The outlook reflects stable advanced logic and memory expectations, along with a modestly improving mainstream logic environment. The company is tracking more than 20 major leading-edge capacity expansions globally, including advanced logic, advanced memory and advanced packaging projects. Bookings strengthened during the quarter, lifting backlog and increasing visibility into customer spending plans through the second half of 2026 and into 2027. For the third quarter of 2026, Entegris expects sales between $905 million and $935 million. GAAP earnings are projected in the range of 75-83 cents per share, while non-GAAP earnings are forecast between 96 cents and $1.04. The company expects an adjusted EBITDA margin of 28%-29% and an adjusted operating margin of 24.2%-25.1%. Management also sees fourth-quarter revenues rising about 4% from the midpoint of third-quarter guidance, which would represent mid-teens year-over-year growth. For 2026, ENTG expects net interest expense of approximately $180 million, a non-GAAP tax rate of about 14% and capital expenditures of $250 million. The share count is projected at roughly 154 million. Since the earnings release, investors have witnessed a upward trend in fresh estimates. The consensus estimate has shifted 11.47% due to these changes. At this time, Entegris has a nice Growth Score of B, a score with the same score on the momentum front. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Entegris has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Entegris belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Qualcomm (QCOM), has gained 7.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Qualcomm reported revenues of $9.95 billion in the last reported quarter, representing a year-over-year change of -4%. EPS of $2.21 for the same period compares with $2.77 a year ago. For the current quarter, Qualcomm is expected to post earnings of $2.18 per share, indicating a change of -27.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.4% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Qualcomm. Also, the stock has a VGM Score of F. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Entegris, Inc. (ENTG) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). 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A month has gone by since the last earnings report for Ichor Holdings (ICHR). Shares have lost about 27.4% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Ichor Holdings due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Ichor Holdings, Ltd. before we dive into how investors and analysts have reacted as of late. Ichor Holdings reported second-quarter 2026 non-GAAP earnings of 34 cents per share, beating the Zacks Consensus Estimate by 9.7%. The company had posted a loss of a penny in the year-ago quarter. Improved product mix and progress on its machining strategy supported the earnings upside. Revenues increased 22.7% year over year to $294.8 million but missed the consensus mark by 1.85%. Inventory turns remained at 3.7 times as Ichor invested in working capital to support accelerating customer demand. Second-quarter revenues increased 15% sequentially as demand strengthened across the semiconductor equipment market. Management said isolated part shortages prevented the company from recognizing its full revenue forecast before the June 2026 quarter end. The affected shipments were completed days later, and revenues exceeded $300 million for the 13 weeks ending July 3. The company now expects 2026 revenues to increase at least 30% from 2025, aligning with the high end of its wafer fabrication equipment market expectations. Demand is being supported by investments in artificial intelligence infrastructure, advanced etch and deposition applications, gate-all-around architectures, advanced memory and leading-edge process technologies. Non-GAAP gross margin expanded 230 basis points year over year and 130 basis points sequentially to 14.1%. The result exceeded the upper end of management’s guidance, reflecting improved product mix, higher component revenues and gains from the company’s manufacturing realignment. Non-GAAP operating expenses totaled $25.3 million. Operating income rose to $16.3 million from $4.6 million a year earlier, while the operating margin improved to 5.5% from 1.9%. Ichor secured additional customer qualifications during the second quarter, including approvals for machining and welding operations at its high-volume manufacturing site in Malaysia. These qualifications expand the company’s ability to produce components internally and reduce dependence on outside suppliers. Management said manufacturing capacity is not currently constraining growth. ICHR has installed capacity to support approximately $2 billion in annual revenues and believes targeted clean-room and machining investments could raise capacity within its existing footprint to about $3 billion annually. Ichor ended the second quarter with cash and equivalents of $256.5 million, up from $89.1 million at the end of the first quarter. The increase primarily reflected $195.4 million in net proceeds from an at-the-market equity offering involving 2.5 million shares at an average price of $80.70. Cash used in operating activities totaled $15.9 million in the second quarter of 2026. Total debt was pinned at $120.6 million, while the net debt coverage ratio was 1.1. For the third quarter of 2026, Ichor expects revenues between $315 million and $345 million. The midpoint of $330 million implies sequential growth of about 12% and year-over-year growth of approximately 38%. Non-GAAP gross margin is projected between 14.5% and 15.5%, reflecting management’s target of roughly 100 basis points of sequential expansion. Non-GAAP earnings are expected in the range of 40-50 cents per share. It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 17.61% due to these changes. At this time, Ichor Holdings has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Ichor Holdings has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Ichor Holdings belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Qualcomm (QCOM), has gained 2.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Qualcomm reported revenues of $9.95 billion in the last reported quarter, representing a year-over-year change of -4%. EPS of $2.21 for the same period compares with $2.77 a year ago. Qualcomm is expected to post earnings of $2.18 per share for the current quarter, representing a year-over-year change of -27.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.4%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Qualcomm. Also, the stock has a VGM Score of F. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ichor Holdings, Ltd. (ICHR) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The programs the deal covers in the near term were already inside the targets management had published, and it is connectivity rather than custom silicon that management points to for the raise that did arrive. Marvell Technology (MRVL) reported a record quarter, raised its revenue outlook for fiscal 2027 (by about $500 million) and fiscal 2028, and lost 10.3% of its value in the first session after the report. Coverage of the session named two drivers: softer-than-hoped fiscal 2028 guidance despite the raise, and the timing of an expanded commercial agreement and warrant with a key hyperscaler. The second turns on when that money arrives rather than whether it does. The Warrant Is Already Inside The Targets Through Fiscal 2028 Revenue of $2.74 billion beat the consensus estimate of $2.71 billion, and adjusted earnings of $0.94 a share cleared consensus too. AVGO, NVDA and AMD fell between 0.7% and 4.6% over the same span, so most of the selling was Marvell's own. The agreement covers inference accelerators, storage controllers and network interface controllers attached to the TPU ecosystem, and an analyst on the call sized it at roughly $120 billion of cumulative revenue over six years if every milestone is hit, about $18.5 billion a year annualized, from that one customer's custom-attach programs alone. The guidance does not carry that pace: the same analyst put custom at around $5 billion to $6 billion in calendar 2027. Management's answer: the programs the agreement covers through fiscal 2028 are already inside the custom revenue target the company had published earlier, and the meaningful contribution starts in fiscal 2029. Connectivity, More Than Custom, Paid For The Fiscal 2028 Raise Fiscal 2028 revenue is now guided to roughly $18 billion, up $1.5 billion from the $16.5 billion outlook given one quarter earlier. Custom silicon is part of that, but management calls connectivity the bigger bucket and probably the largest driver, pointing to scale-up optics and switching rather than at the programs the warrant covers. Both sit inside one end market: data center revenue made up 79% of the total, and the company's own risk disclosures flag a rising dependence on a few customers. Concentration of that kind is a different proposition from the Trefis High Quality Portfolio, which does not depend on the handful of largest technology names to produce its returns. The Custom Ramp Reaches Gross Margin First Non-GAAP gross margin was 58.9% in fiscal Q2 2027, and the fiscal Q3 2027 guidance midpoint is 58.0%, a 90 basis point step down that management attributes to the forecast acceleration of its custom business. The CFO's preliminary view is that fiscal 2028 gross margin sits in the same band as the back half of fiscal 2027. The lower-margin part arrives first, though management guides operating margin into its 38% to 40% target range exiting fiscal 2027. October Is Where Fiscal 2029 Gets Its Number Management's fiscal 2029 custom target of more than $10 billion is not a new number: management said it had flagged the figure as far back as its last call and as early as June 2025, after having put custom revenue at $8 billion to $10 billion in April 2024. Management says the warrant biases that target higher but has declined to size the increase before the October 6 investor day. Until then, the case for owning Marvell rests on connectivity execution that is already inside the guide, not on a warrant increment nobody has put a number on. Options currently price Marvell's implied volatility near 60%, in the 56th percentile of its trailing one-year range, a middling reading for how much movement the market is pricing over a year. A Bet On One Build Cycle Is Still One Bet Marvell's story from here turns on how fast a handful of hyperscaler programs move from design to volume, a schedule set by its customers. Investors who would rather hold a rules-based system than a single build cycle can start with the Trefis High Quality Portfolio. That portfolio has a track record of outpacing the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000.

This article first appeared on GuruFocus. Release Date: August 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Underlying revenue growth was positive 7% in Q2 2026 when adjusted for the large pre-purchase deal and non-recurring revenue in the prior year. Gross margin remained strong at 82% for the group, with Products and Solutions improving to 68% from 64%. The cost reduction program delivered SEK 163 million in savings over four quarters, significantly exceeding the SEK 100 million target. AutoSense achieved 230% organic growth, driven by a DMS license agreement, and secured new design wins with a European premium sports car manufacturer and a Qualcomm-based platform extension. Operating cash flow was positive at SEK 22 million in the quarter, and free cash flow over the last 12 months was positive at SEK 35 million. Net sales declined 46% year-over-year (organic decline of 39%) due to challenging market conditions and a tough comparison period. Liquidity is strained, with cash at SEK 37 million and a risk of insufficient financing over the next 12 months. Free cash flow was negative at SEK 10 million in the quarter, and the company is not providing guidance for the second half of the year. AutoSense's revenue is expected to revert to normal levels after the DMS license agreement revenue was fully recognized in Q2 2026. A previously announced design win with a Korean OEM did not enter production as expected, and new AutoSense wins are relatively small and not material to group revenue. Warning! GuruFocus has detected 3 Warning Signs with TBIIF. Is TBIIF fairly valued? Test your thesis with our free DCF calculator. Q: What level should we roughly expect for AutoSense revenues in the coming quarters, given that the large Tier 1 DMS license deal has now been fully delivered in Q2? Is it back to the 10-15 million SEK level?A: Fadi Faron, CEO: As previously communicated, the revenues from the DMS deal with the major automotive Tier 1 accrued in Q4 2025 and the first half of 2026. Moving forward, that deal is basically finished, and we will revert to our normal business based on existing customers. We do not provide an explicit breakdown of revenue per quarter per business unit. Q: With competitors reporting installed bases of 8 million and 6 million DMS-equipped vehicles, what is AutoSense's current deployment footprint?A: Fadi Faron, CEO: AutoSense is currently present with a few customers in Asia as well as a very large premium European automotive company. We are engaged in many pre-sales activities to build up the pipeline. These are forward-looking deals that, if they materialize, would have start of production in 2029, 2030, and beyond. Q: How are you going to reduce the annual cost base for AutoSense by just over 50 million SEK?A: Fadi Faron, CEO: We are going to look at all avenues to achieve that target, including discretionary expenses and, unfortunately, workforce planning. There will be a resizing of the organization. Q: In 2023, you presented a design win with a Korean OEM expected to start in 2026. Has this program entered production?A: Fadi Faron, CEO: No, this program did not enter production. Q: Looking at smart glasses and XR glasses, do you see a realistic opportunity in the near future for Tobii's technology to be integrated into a mass market consumer product rather than mainly into high-end and relatively expensive XR devices? What would need to change?A: Fadi Faron, CEO: The improvements of software moving into machine learning, specifically the XR5ML, will drive higher power efficiencies and lower costs. We will continue working on these technologies to enable us and partners to implement them into more mass consumer devices. Q: Recently, Magna, Seeing Machine, Forvia, and SmartEye announced design wins for European mirror-integrated DMS/OMS programs. Did Tobii participate in these RFQs, and if so, what were the key reasons Tobii was not selected?A: Fadi Faron, CEO: There are many ongoing RFQs at all times. Many of the companies mentioned already have their own existing customer base, so I wouldn't know which specific deals are being referred to. We are focused on engaging with our customers, propelling the unique proposition of our products, and working on winning upcoming deals. Q: Could you help us better understand the economics of adding OMS on top of DMS?A: Fadi Faron, CEO: Looking at the requirements in the automotive market today, while DMS is a main safety element, OMS is becoming more and more required by automotive OEMs. From a regulatory perspective, OMS will be part of the requirements in a few years as well. Q: If you announce an automotive design win today, how far out are potential revenues and cash flow from that? Is this one, two, or three years?A: Fadi Faron, CEO: Typically, in this industrial business model, once you have an agreement, there might be an upfront payment for non-recurring engineering, but that only covers initial customization costs. The real payout comes a few years later in the form of license revenues, which may or may not be related to the number of cars on the road. Depending on the start of production and when the commercial decision is made, it could be two, three, or four years ahead, and then it will accumulate over the years. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

A month has gone by since the last earnings report for Qualcomm (QCOM). Shares have added about 8.7% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Qualcomm due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for QUALCOMM Incorporated before we dive into how investors and analysts have reacted as of late. Qualcomm Misses Q3 Earnings Estimates, Revenues Beat on Auto GrowthQualcomm reported third-quarter fiscal 2026 non-GAAP earnings of $2.21 per share, down 20% year over year and missing the Zacks Consensus Estimate of $2.22 by 0.5%. Revenues of $9.95 billion fell 4% year over year but topped the consensus mark of $9.71 billion by 2.4%.Higher input costs and handset weakness pressured profitability, while record automotive sales and IoT growth supported the top line. QCT automotive revenues surged 61% to $1.59 billion, marking the 23rd straight quarter of double-digit year-over-year growth.Handset Weakness Drags on QCT ResultsQCT revenues declined 5% to $8.50 billion. Handset revenues plunged 20% to $5.09 billion as major OEMs reduced chipset purchases and worked down inventory amid memory supply constraints and higher memory prices.The handset decline more than offset gains elsewhere in the product business. Management estimated that China OEM handset revenues reached a bottom in the quarter and expects double-digit sequential growth in the fourth quarter as channel inventory drawdowns ease.Qualcomm Extends Automotive and IoT MomentumAutomotive revenues rose $604 million year over year, driven by a $381 million increase in revenue per unit from favorable mix and higher average selling prices. Another $223 million came from higher shipments tied to new vehicle launches using Snapdragon digital cockpit and ADAS and automated-driving products.IoT revenues climbed 9% to $1.83 billion, led by favorable mix and growth in industrial networking and robotics. Combined QCT automotive and IoT revenues advanced 28%, and Qualcomm raised its fiscal 2026 exit-rate outlook for annualized automotive sales to approximately $7 billion from $6 billion.Margins Narrow as Product Costs RiseQCT EBT declined 18% to $2.19 billion, while its EBT margin contracted four percentage points to 26%. Higher product costs and lower revenues outweighed higher average selling prices, reflecting industrywide increases across wafers, assembly, testing, advanced packaging, memory and other materials.QTL revenues decreased 3% to $1.28 billion, and EBT fell 6% to $881 million. Its EBT margin slipped to 69% from 71%, as lower estimated cellular-product sales and fewer prior-period royalty adjustments offset a favorable revenue-per-unit mix.Qualcomm Invests in Data Center ExpansionGAAP research and development spending increased $381 million to $2.61 billion, primarily because of higher wireless and integrated-circuit development costs, lower engineering reimbursements and more share-based compensation. Selling, general and administrative expenses rose $205 million to $976 million, partly reflecting greater compensation and growth investments.The spending supports a phased data center roadmap spanning connectivity, custom silicon, AI accelerators and server CPUs. Two custom-silicon wins are expected to begin generating revenues in the December quarter, while the company completed the $3.1 billion Modular acquisition to add an open, hardware-agnostic AI software platform.Cash Flow & LiquidityQualcomm returned $2.3 billion to stockholders during the quarter, including $1.4 billion in repurchases and $973 million in dividends. At quarter-end, $20.6 billion remained under its repurchase authorization.Cash, cash equivalents and marketable securities totaled $8.30 billion at June 28, down $1.85 billion from fiscal year-end, while debt was $15.27 billion. Nine-month operating cash flow fell $1.61 billion to $8.41 billion, partly as inventory increased amid memory-related customer demand shifts.GuidanceFor the fourth quarter of fiscal 2026, Qualcomm forecasts revenues of $9.7-$10.5 billion and non-GAAP earnings of $2.05-$2.25 per share. QCT revenues are projected at $8.4-$9.0 billion with a 23-25% EBT margin, while QTL revenues are expected between $1.2 billion and $1.4 billion.QCT handset revenues are expected to be about $5.2 billion, with Android growth offset by lower Apple product sales. Qualcomm expects its modem share in the upcoming iPhone launch to be materially below the prior 20% estimate, while fourth-quarter automotive revenues are projected to rise approximately 60% year over year. In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -12.97% due to these changes. Currently, Qualcomm has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Qualcomm has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Qualcomm is part of the Zacks Electronics - Semiconductors industry. Over the past month, Navitas Semiconductor Corporation (NVTS), a stock from the same industry, has gained 13.6%. The company reported its results for the quarter ended June 2026 more than a month ago. Navitas Semiconductor reported revenues of $10.53 million in the last reported quarter, representing a year-over-year change of -27.3%. EPS of -$0.04 for the same period compares with -$0.05 a year ago. Navitas Semiconductor is expected to post a loss of $0.04 per share for the current quarter, representing a year-over-year change of +20%. Over the last 30 days, the Zacks Consensus Estimate has changed +16.7%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Navitas Semiconductor. Also, the stock has a VGM Score of F. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Navitas Semiconductor Corporation (NVTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Qualcomm Incorporated QCOM posted mixed fiscal third-quarter 2026 results, with revenues topping expectations while earnings slipped below the consensus mark. The quarter highlighted a widening gap between record automotive growth and a handset business pressured by memory constraints.That contrast is central to Qualcomm's investment case. Automotive and data center opportunities are scaling, but weaker mobile demand and higher costs continue to pressure near-term profitability. Fiscal third-quarter revenues declined 4% year over year to $9.95 billion but topped the Zacks Consensus Estimate of $9.71 billion by 2.4%. Non-GAAP earnings fell 20% to $2.21 per share and missed the consensus estimate of $2.22 by 0.5%.Higher input costs and handset weakness weighed on profitability. Qualcomm CDMA Technologies revenues declined 5% to $8.50 billion, so gains outside smartphones did not fully offset the mobile slowdown. Automotive revenues surged 61% year over year to $1.59 billion, marking a record quarter and the 23rd consecutive quarter of double-digit year-over-year growth. The increase extended one of Qualcomm's clearest diversification trends.Favorable mix and higher average selling prices added $381 million to automotive revenues, while higher shipments tied to digital cockpit, advanced driver-assistance and automated-driving launches contributed $223 million. Qualcomm raised its fiscal 2026 exit outlook for annualized automotive sales to about $7 billion. Handset revenues fell 20% year over year to $5.09 billion as major original equipment manufacturers reduced chipset purchases and worked through inventory amid memory supply constraints and higher memory prices. The decline more than offset gains elsewhere in the product business.Management expects China handset revenues to rebound by double digits sequentially in the fiscal fourth quarter. Apple Inc. AAPL, however, adds an insourcing risk after introducing C1, the first cellular modem designed by Apple, in the iPhone 16e. Qualcomm forecasts fiscal fourth-quarter revenues of $9.7 billion to $10.5 billion and non-GAAP earnings of $2.05-$2.25 per share. Qualcomm CDMA Technologies revenues are projected at $8.4-$9.0 billion, with earnings before taxes margin of 23%-25%.Automotive revenues are expected to rise about 60% year over year, but product costs remain a headwind. Qualcomm is raising prices to address higher wafer, assembly, testing, packaging, memory and other input costs, with gross-margin benefits expected to emerge gradually. Research and development spending increased $381 million to $2.61 billion as Qualcomm funded wireless, integrated-circuit and growth initiatives. Its data center roadmap spans connectivity, custom silicon, artificial intelligence accelerators and server-class central processing units.Two custom silicon wins with global-scale hyperscalers are expected to begin generating revenues in the December 2026 quarter. NVIDIA Corporation NVDA is advancing its Vera Rubin platform for agentic artificial intelligence infrastructure, illustrating the scale of the market Qualcomm is entering. Early custom silicon revenues are expected to dilute Qualcomm CDMA Technologies gross margin by 1.5-2 percentage points. Qualcomm's third-quarter results strengthened the diversification case, but handset weakness and margin pressure still limit near-term visibility. The data center build adds another potential growth engine while increasing execution demands.QCOM currently carries a Zacks Rank #3 (Hold). Its Value Score of C sits in the middle of the A-to-F scale, while its Growth Score of D, Momentum Score of F and VGM Score of F are weaker. The mix lacks the favorable A or B Style Score confirmation generally associated with stronger Zacks Rank setups.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. QUALCOMM stock has delivered a 59.9% return over the past three years, yet current checks suggest the shares now sit close to their intrinsic value on a Discounted Cash Flow (DCF) basis while still looking inexpensive on some market multiples. With mixed signals on valuation, investors are weighing a solid historical return profile against a set of fairness indicators rather than a clear bargain. A 59.9% return over three years points to QUALCOMM as a strong performer over that window, which raises the bar for any further upside to be justified by fundamentals. QUALCOMM's push into AI focused data center and automotive chips, alongside a steady dividend, can support cash flow expectations. At the same time, intensifying semiconductor competition from China may pressure margins and investor confidence in future earnings power. QUALCOMM scores 4 out of 6 on the broader valuation checks, which is a mixed picture rather than an obvious bargain or an obvious overpricing. You can see the breakdown at 4 out of 6. The issue now is whether QUALCOMM's share price near its Discounted Cash Flow intrinsic value still offers enough potential reward for the risks that come with its shifting business mix and industry competition. Find out why QUALCOMM's 6.5% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) method estimates what QUALCOMM is worth today based on the cash it is expected to generate in the future. QUALCOMM currently produces about $10.95b of free cash flow over the latest twelve months, and the model assumes those cash flows keep growing rather than shrinking. On that basis, the 2 Stage Free Cash Flow to Equity model points to an estimated intrinsic value of about $172 per share. This sits only slightly above the current share price, implying the stock is roughly fairly valued with an intrinsic discount of about 3.7% rather than offering a clear margin of safety. The recent concern about increased semiconductor competition from China helps explain why the market is not assigning a larger premium to QUALCOMM despite solid free cash flow. Overall, QUALCOMM screens as about fairly valued on a cash flow basis, with only a small gap between the DCF estimate and the current market price. QUALCOMM is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for QUALCOMM. The P/E ratio is a useful way to check how QUALCOMM stock is priced against its earnings power today. QUALCOMM currently trades at about 19.1x earnings, which is well below the broader semiconductor industry average of roughly 53.1x and the peer group average of about 65.6x. A tailored fair P/E ratio for QUALCOMM, which blends its growth outlook, profitability profile, size and risk factors, is near 31.4x. This is materially higher than the current 19.1x, which indicates the market is pricing the stock at a discount even after considering sector-specific risks such as rising competition from China. On the P/E metric, QUALCOMM appears relatively inexpensive, with its earnings priced more cheaply than both sector norms and a more customized fair multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for QUALCOMM pick up where the valuation checks stop and focus on the specific future paths that would need to play out in growth, margins and earnings for the stock to be worth materially more or less than today’s price. Instead of a single output like a P/E or DCF figure, they lay out the underlying story those numbers rely on so you can watch how QUALCOMM's actual progress lines up over time. Community views on QUALCOMM sit far apart, with one camp focused on its role in AI at the edge and the other fixated on geopolitical and handset risks. Bull case: 45% undervalued Read the full Bull Case to see why QUALCOMM could be undervalued Bear case: 28% overvalued Read the full Bear Case to see why QUALCOMM could be overvalued Do you think there's more to the story for QUALCOMM? Head over to our Community to see what others are saying! For QUALCOMM, the Discounted Cash Flow (DCF) work suggests the stock is close to intrinsic value, so the cash flow story alone does not point to a wide margin of safety. The market multiple view looks more generous, with the current P/E implying the stock is undervalued compared with peers and a tailored fair ratio. That split comes down to whether earnings and sentiment eventually pull the multiple higher or whether cash flow risk and capital needs keep a lid on the valuation. The key question from here is whether QUALCOMM can defend margins in the face of rising Chinese competition. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include QCOM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Qualcomm (QCOM) reported mixed third-quarter earnings on July 29, which promptly sent shares of the tech giant even lower. However, it appears the worst of the worst has been priced into QCOM stock, with Qualcomm arguing that the latest quarter represents the bottom. In its most recent quarter, Qualcomm posted adjusted EPS of $2.21, which was a penny below estimates. Revenue for the quarter slipped about 4% year-over-year (YOY) to $9.95 billion but still came in above estimates of $9.7 billion. Shaq Says His Dad Treated Him to White Castle, But When He Saw Homeless Man With a Sign, He Gave 3 of His Burgers to the Guy — ‘Always Look Out for the Little Man’ Micron vs. SK hynix: One Stock Rules AI Memory. The Other Has More Room to Run. Rocket Lab Investors Have Plenty to Cheer Ahead of Q2 Earnings Today Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Not helping, handset revenue slipped 20% YOY to $5.08 billion thanks to ongoing memory supply shortages, and as the company's “modem share for the upcoming iPhone launch is expected to be materially lower than [the] prior estimate of 20%." However, Qualcomm believes the worst of the current smartphone downturn may nearly be over. The earnings miss was not the whole story, as earnings were mixed. Of course, handset revenue didn’t help. Neither did guidance. For Q4, Qualcomm expects revenue of $9.7 billion to $10.5 billion and adjusted EPS of $2.05 to $2.25, while analysts expect roughly $2.38 in adjusted EPS. So, the profit outlook is clearly disappointing. However, investors should look beyond the disappointing numbers and focus on the “bottom” story. Remember, Qualcomm told investors that handset revenue from Chinese customers was expected to reach a bottom in Q3 before returning to sequential growth in the following quarter. That is an important part of the investment story. Still, I wouldn’t rush into QCOM stock just yet. Memory prices remain elevated, smartphone manufacturers are being cautious, and Qualcomm expects its revenue from Apple (AAPL) products to decline as Apple's use of Qualcomm modem components falls. In short, a bottom really isn’t guaranteed until there’s proof. That said, Qualcomm is more than a smartphone stock. The best part of the earnings report was the growth outside smartphones. Qualcomm noted that combined automotive and IoT revenue increased 28% YOY, with automotive also delivering 23 consecutive quarters of double-digit YOY growth. Plus, management expects total non-handset revenue to reach $40 billion by fiscal 2029, up from the prior target of $22 billion. Qualcomm also expects non-handset revenue growth to accelerate significantly in fiscal 2027, including growth from its emerging data-center business. If Qualcomm can execute on that plan, today's weakness could be an opportunity. For long-term investors, weakness may be an opportunity. The bullish case is that smartphone demand eventually stabilizes, memory pressures ease, automotive and IoT continue growing, and Qualcomm's new AI and data-center businesses become meaningful sources of revenue. We can also argue that QCOM stock’s year-to-date (YTD) pullback prices in a good deal of negativity. The bearish case is that smartphone weakness lasts longer than expected, Apple revenue falls faster, and other costs remain high. A long-term investor could always start out with a small position in QCOM stock, then add to it over time should the company see better handset revenue, better margins, stronger guidance, or evidence that the data-center business is gaining traction. Of the 34 analysts covering QCOM stock, 10 have a “Strong Buy” rating, two have a “Moderate Buy” rating, 19 have a “Hold” rating, one has a “Moderate Sell” rating, and two analysts have a “Strong Sell” rating. Overall, Qualcomm has a consensus “Moderate Buy” rating. The mean target price of $198.03 implies potential upside of 22% from current levels. Meanwhile, the high price target of $400 implies as much as 146% possible growth from here. To summarize, the company missed earnings expectations in Q3, smartphone revenue dropped sharply, and its near-term profit outlook disappointed Wall Street. However, the QCOM stock story is not just about smartphones anymore. Qualcomm is attempting to turn itself into a diversified company with automotive, IoT, AI, and data centers. Management believes the current handset downturn is approaching a bottom, but investors will need to see further proof before they start getting aggressively bullish on this oversold stock. On the date of publication, Ian Cooper did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Image source: The Motley Fool. Wednesday, July 29, 2026 at 2 p.m. ET President and Chief Executive Officer - Cristiano Amon Chief Financial Officer and Chief Operating Officer - Akash Palkhiwala Senior Vice President of Investor Relations - Brett Simpson President, Qualcomm Technology Licensing - Alex Rogers Operator: Ladies and gentlemen, thank you for standing by. Welcome to the QUALCOMM Third Quarter Fiscal 2026 Earnings Conference Call. As a reminder, this conference is being recorded, July 29, 2026. The playback number for today's call is (877) 660-6853. International callers, please dial (201) 612-7415. The playback reservation number is 13761080. I would now like to turn the call over to Brett Simpson, Senior Vice President of Investor Relations. Mr. Simpson, please go ahead. Brett Simpson: Thank you, and good afternoon, everyone. Today's call will include prepared remarks by Cristiano Amon and Akash Palkhiwala. In addition, Alex Rogers will join the question-and-answer session. You can access our earnings release and a slide presentation that accompany this call on our Investor Relations website. In addition, this call is being webcast on qualcomm.com, and a replay will be available on our website later today. During the call today, we will use non-GAAP financial measures as defined in Regulation G, and you can find the related reconciliations to GAAP on our website. We will also make forward-looking statements, including projections and estimates of future events, business or industry trends or business or financial results. Actual events or results could differ materially from those projected in our forward-looking statements. Please refer to our SEC filings, including our most recent 10-Q, which contain important factors that could cause actual results to differ materially from the forward-looking statements. And now to comments from Qualcomm's President and Chief Executive Officer, Cristiano Amon. Cristiano Amon: Thank you, Brett, and good afternoon, everyone. Thanks for joining us today. In fiscal Q3, we delivered revenues of $9.9 billion, coming in at the high end of our guidance and non-GAAP earnings per share of $2.21. QCT revenues were $8.5 billion, with another quarter of record automotive revenues as well as growth in IoT. Licensing business revenues were $1.3 billion. At our recent Investor Day, we lay out the next chapter of Qualcomm built across 3 dimensions: one, expanding into the data center with 4 unique product lines; two, driving agentic and physical AI compute everywhere; and three, expanding beyond silicon to full stack software and platform solutions. We also updated our fiscal 2029 financial targets, which now include more than $24 billion in revenue across automotive and IoT plus more than $15 billion in data center, bringing our total non-handset revenue outlook to $40 billion by fiscal 2029, up from our previous target of $22 billion. This reflects our conviction in the opportunities throughout the end of the decade and the scale of our business diversification. In the short term, the entire industry continues to be impacted by unprecedented memory prices, higher manufacturing and input costs as well as supply chain shortages driven by overall data center demand. In addition to the resulting revenue decline in mobile and consumer electronics, this is creating short-term pressure on QCT gross margins which will be slightly below our historical range. We're implementing price increases and as they take effect, we expect to see gross margins realign to our operating model. Despite these headwinds, we expect top line growth for QUALCOMM in fiscal '27, driven by an inflection in non-handset revenues throughout the fiscal year. We're incredibly excited about the next chapter of Qualcomm, our relevance in the next phase of AI and distributed intelligence from edge to cloud, and we remain firmly focused on the execution phase of our strategy. I will now share some key highlights on the business. Let me start with data center. This is the ideal and logical time for Qualcomm to enter the market as agentic workloads are reshaping the economics of AI. Efficient token generation and total cost of ownership are fundamental to scaling AI. And as a result, inference is becoming disaggregated in the data center and will be increasingly distributed. This means hybrid inference will evolve across the entire compute continuum from data center to on-premise network edge and edge devices. Given Qualcomm's assets, it's a natural evolution of our growth story. We are developing a differentiated set of product lines, including connectivity in fiscal '26, custom silicon and AI accelerators in fiscal '27 and server-class CPUs in fiscal '28. Our portfolio is rolling out in phases over the next 2 years, leveraging decades of leadership in power-efficient compute and strong ecosystem presence and relationships. Our 2 near-term custom silicon wins will be revenue generating in the December quarter, and we have begun wafer production. Both projects are in the first phase of strategic multiyear customer relationships that we expect to expand over time. Our innovative high-bandwidth compute solution is designed to address one of the industry's most difficult bottlenecks by integrating compute directly with high-density memory, improving performance per watt, memory efficiency and total cost of ownership. I'm pleased to report that we have completed the tape-out of HBC Gen 1, an engineering milestone that moves us into the next phase of customer engagements. We expect to demonstrate HBC performance on silicon in the coming quarters ahead of the launch of our first HBC solution in mid-2027. Across our merchant platforms, including HBC based AI accelerators, SerDes connectivity and CPUs, we are in active conversations with nearly every leading data center player about building long-term partnerships. We're pleased with the activity and interest across these opportunities and expect to share more as they advance. As announced earlier today, we have closed our acquisition of Modular Inc., and integration is now underway. Modular strengthens our ability to deliver an end-to-end software stack for data center and Edge AI deployments. It will also be hardware-agnostic helping simplify AI software complexity across multiple platforms and giving developers a modern and open environment for heterogeneous compute. This is an important step in how we see AI infrastructure evolving with software and hardware coming together to deliver better performance, flexibility and efficiency. Our vision and objective with Modular goes far beyond augmenting our AI software capabilities. We have the ambition to change the current industry approach to AI software from closed to open systems to promote enhanced competition, innovation and resilience. Modular will host ModCon in August with some incredible announcements from industry partners, and we look forward to further engaging with developers and ecosystem partners at this event. In automotive, customer momentum continues to drive exceptional revenue growth. This quarter, we signed a landmark expanded agreement with BMW, winning a highly competitive selection process to become the lead compute silicon provider for their next-generation ADAS as well as digital cockpit. This agreement represents a material expansion of our automotive pipeline and establishes Qualcomm as the lead compute silicon partner for BMW extending across model programs well into the next decade. We look forward to building on our existing cooperation with BMW in the years ahead. Additionally, our recently announced collaboration with Stellantis supports our automotive pipeline well into the 2030s. These agreements reflect the broad interest we're seeing for digital cockpit and ADAS. Customers are shifting from socket-by-socket design awards to multi-generation strategic engagements as they increasingly recognize the value of our broad technology portfolio, platform approach and long-term commitment to partnerships, the automotive industry and open ecosystems. Further, with our fifth-generation Snapdragon digital chassis ramping in September, we're delivering a significant increase in content per vehicle, and we are on track to become the #1 automotive semiconductor player by revenue. Last quarter, we said we were targeting an annualized revenue run rate of $6 billion as we exit fiscal 2026. Today, we're raising that outlook and now expect annualized sales of approximately $7 billion exiting fiscal '26. Within Industrial, we're strengthening our position across many verticals as they embrace AI at the edge and open weight models. At our Investor Day, we introduced a fiscal '29 projection of $8 billion in revenue for industrial networking and robotics. We're happy to report that our industrial design win pipeline exceeds $7 billion with over $3.5 billion in design wins secured this fiscal year. This reflects strong customer demand and a meaningful increase in new businesses. We have a very broad portfolio of purpose-built silicon and full stack software solutions for this category. Our channel presence exceeds 38,000 customers supported by a deep partner ecosystem that is already yielding results. And with Arduino and Edge Impulse, our reach now extends to more than 30 million users. Moving on to handsets. Despite overall industry contraction caused by the current memory environment, we're seeing early signs of an agentic smartphone cycle that will grow over time. In China, major OEMs are preparing to bring new on-device agents and orchestrators to market, and we believe agentic experiences will play a larger role in premium tier demand as adoption grows. Our share position at Samsung remains strong, with Snapdragon powering approximately 70% of their flagship devices as announced at Samsung Unpacked. Our collaboration is now expanding across the wider Galaxy ecosystem from the latest foldable phones and Galaxy watches to intelligent eyewear developed with Google, bringing new agentic experiences to more devices. This reflects a broader potential to reimagine mobile for the age of agentic AI. Beyond smartphones, PCs, smart glasses and other new personal AI form factors are all becoming endpoint for agents that create a significant multiyear upgrade opportunity for Qualcomm as today's installed base needs to evolve to enable more personal, contextual and autonomous AI experience. In PCs, we're growing our leading share of design wins in Google Books, bringing Snapdragon together with Gemini Intelligence for a new generation of AI first laptops. With Microsoft, we're collaborating on Project Solara, a chip-to-cloud platform designed for agent-first enterprise devices. And through our Snapdragon Start program for smart glasses, we're delivering a complete reference platform that enables eyewear brands to develop their own devices. With roughly 600 million global eyewear units shipped every year, this program will help expand the ecosystem and accelerate the transition of this category to smart glasses. You will hear more about this as Snapdragon Summit in September. At Investor Day, we lay out our vision for Qualcomm's next chapter and our path toward our fiscal 2029 targets. We're already seeing an inflection in our non-handset businesses, which underscores the success of our diversification strategy, and there's a lot more to come. Our data center business is just at the beginning of its journey, and we recognize that investors want to see more proof points that we can successfully execute on our plans as a new entrant. We welcome the challenge ahead and are confident we will prove as we have many times before, that Qualcomm can execute and win in new growth areas, including data center. With that, I will turn the call over to Akash. Akash Palkhiwala: Thank you, Cristiano, and good afternoon, everyone. Let me begin with our results for the third fiscal quarter. We delivered revenues of $9.9 billion and non-GAAP EPS of $2.21, with revenue at the high end of our guidance. QTL revenues of $1.3 billion and EBT margin of 69% were in line with our expectations. QCT revenues of $8.5 billion were at the high end of our guidance, and EBT margin of 26% was in line with guidance. QCT handset revenues of $5.1 billion reflect the impact of industry-wide memory dynamics on the global smartphone market. QCT IoT revenues of $1.8 billion were up 9% versus the prior year driven by growth within the industrial networking and robotics category of products. In QCT Automotive, we delivered another record quarter with revenues of $1.6 billion, with 61% year-over-year growth driven by accelerating demand and increasing compute content per vehicle. Total non-handset revenues in QCT, including automotive and IoT, grew 28% year-over-year, underscoring the continued execution of our diversification strategy. Lastly, we returned $2.3 billion to stockholders, including $1.4 billion in share repurchases and $937 million in dividends. Before turning to guidance, I'd like to provide an update on a couple of factors reflected in our financial performance. First, consistent with our expectations, we estimate that QCT handset revenues from Chinese OEMs reached a bottom in the third fiscal quarter and will return to double-digit sequential growth in the fourth quarter. Second, the semiconductor industry is experiencing broad-based increase in input costs across wafer fabrication, assembly, test, advanced packaging, memory and other materials. We are taking concrete actions to reflect the higher input costs in our product pricing. These actions will benefit our gross margins over time as the pricing changes gradually come into effect. Finally, as a result of our supply constraints, we now expect an acceleration in the step-down of Apple product revenues starting in the fourth fiscal quarter as our share for upcoming iPhone launch is expected to be materially lower than our prior estimate of 20%. All these factors are contemplated both in our third quarter performance and fourth quarter outlook. Against this backdrop, I'll now provide our guidance for the fourth fiscal quarter. We are forecasting revenues of $9.7 billion to $10.5 billion and non-GAAP EPS of $2.05 to $2.25. In QTL, we estimate revenues of $1.2 billion to $1.4 billion, and EBT margin of 68% to 72%, reflecting normal seasonal trends. In QCT, we expect revenues of $8.4 billion to $9 billion and EBT margins of 23% to 25%. We forecast QCT handset revenues to be approximately $5.2 billion, driven by sequential growth in Android, offset by lower Apple product revenues. We expect QCT IoT revenues to remain approximately flat versus the year ago period, with double-digit growth across our industrial networking and robotics category of products, offset primarily by the impact of memory constraints on tablets and other consumer products. In QCT Automotive, we expect another record quarter with approximately 60% year-over-year revenue growth. Lastly, we anticipate non-GAAP operating expenses to be approximately $2.7 billion in the quarter, reflecting the acquisition of Modular and continued investment in our data center product road map ahead of revenue ramp. Before I conclude my prepared remarks, let me summarize the key drivers of QCT's growth trajectory going forward. We are well positioned to execute on the vision we outlined at our recent Investor Day with QCT non-handset revenues expected to grow to $40 billion by fiscal '29, nearly double the target we had previously provided. This forecast includes data center revenue growth to $5 billion in fiscal '27 and $15 billion in fiscal '29. As a result of our diversification execution, we now estimate non-handsets at more than 50% of QCT revenues in fiscal '27 and grow to approximately 2/3 in fiscal '29. In the short term, we anticipate growth in non-handset revenues relative to prior year to accelerate from 24% in fiscal '26 to greater than 60% in fiscal '27, a significant inflection point in the execution of our growth strategy. We expect this growth from non-handset revenues in fiscal '27 to replace total Apple product revenues in '26. In handsets, when memory industry dynamics stabilize, our Snapdragon product leadership and emergence of agentic AI experiences will position us well to reinstate QCT Android revenue scale and growth rates. Lastly, I'd like to welcome the Modular team to Qualcomm. We're excited to have completed this transaction, adding a world-class team whose AI software expertise will enhance our ability to execute on the significant opportunities ahead. This concludes our prepared remarks. Back to you, Brett. Brett Simpson: Thank you, Akash. Operator, we are now ready for questions. Operator: The first question is from the line of Joshua Buchalter with TD Cowen. Joshua Buchalter: Congrats on solid results in a tough backdrop. I wanted to start on the gross margins. It's pretty clear. You explained what was going on with the rising input costs and now you're raising prices. Can you walk us through how we should think about QCT gross margins returning to their prior levels, how long between the ASP increases kind of match the input costs rising? Akash Palkhiwala: Josh, it's Akash. So as I said in my prepared remarks, there's 2 key drivers on the impact on gross margins. I think the first is a little bit of a weaker mix within premium tier. As you know, we have multiple chips within premium and you're seeing operator -- OEMs making a choice on which chip to use and also using prior generation as a response to kind of the memory cost increase environment. And then the second factor is the higher input cost across the supply chain. And so as you would expect, kind of we're taking action to increase the prices and reflect it in our customer product pricing. And we expect this benefit to show up in our gross margins over the next couple of quarters. These changes, as you would expect, come in gradually as we have some contracts in place, and so we need to get past those contracts. There are also product cycles that happen. So this will come up over time. But I think when we get through it, we expect to be consistent with the historical gross margin range we have. Joshua Buchalter: Maybe to follow up, you mentioned that data center revenue from your ASIC engagements would start to layer in, in the December quarter. Any help you can give us on the sort of the shape of that contribution through fiscal 2027 as it's obviously quite a material step up in revenue growth there? Akash Palkhiwala: Yes. So I think as we said, the revenue starts in the December quarter, and you should expect a ramp as we go through the year. As we've said this before, we have 2 custom chip engagements, and both of these are global scale hyperscalers and we're going to expect to start seeing revenue from both of them starting in the December quarter. As you know, the December quarter is right there. And so we do have POs from these engagements, and so we've already started wafers. So we're very confident about the engagement with both the customers. Operator: Our next question is from the line of Joseph Cardoso with JPMorgan. Joseph Cardoso: Maybe just as a first one and a follow-up kind of on the pricing dynamics. Can you just flesh out the pricing actions, like any commentary in terms of the magnitude of price increase that you're looking to take? And then whether these actions are broad-based or you're going to look to be more concentrated across the portfolio? And just as we think about maybe pricing actions in some of these consumer markets like handsets, how do you navigate rising prices in a market that has already seen demand affected by cost inflation and other components? And then I have a follow-up. Akash Palkhiwala: Sure, Joe. So the way you should think about it is this is a pricing action that we are taking broadly across different end markets. As I said earlier, there are certain places where we have a contract or we are waiting for a product cycle to come through, so it will layer in over time. But it's no different than what a lot of the peers in our industry have done, and you should expect something that the scale of the increase that we're looking at is double digit and consistent with some of the actions from other players. Cristiano Amon: Maybe, Joe, this is Cristiano. I'm just going to add 1 comment. I understand your comment, but I think the market is actually down because of the magnitude of increases in the bill materials with memory. So even a double-digit price increase, which is just a pass-through of the input cost increase and wafer price increases, it's actually small when you compare it to the order of magnitude of the memory bill of materials. So we actually don't expect that fundamental changes in the premium tier and the higher tier volume. And we maintain the position that China handset this Q3 is the bottom. Joseph Cardoso: Fair. Understood. And then maybe just as a second one, can you provide any early thoughts on how you're thinking about handset seasonality into the December quarter, just given kind of the moving pieces here around, obviously, Apple and then the recovery on the China OEM side of things? Akash Palkhiwala: Sure. So as you would expect, we're not necessarily guiding the December quarter at this point, but let me give you some kind of qualitative comments about sequential trend on revenues in QCT between fourth quarter and first quarter. So a couple of key factors there. First is Apple. As I mentioned in my prepared remarks, we expect materially lower share in new launches versus our previous estimate of 20%. And as a result of that, we are forecasting approximately 50% decline from September to December quarter. This obviously accelerates, kind of, the exit of Apple revenue out of our model. The second is Android. We expect Android to grow and significantly offset the reduction in Apple and then data center revenue that starts to ramp in the first quarter. So the revenue profile in the December quarter will be a combination of these things, and we expect it to be slightly up on a sequential basis. When you look at the full year, you should not think of previous seasonality where first quarter was the high quarter for us. The profile obviously changes with Apple having a very strong December quarter, not in our model anymore. So we actually expect revenues to grow when we go from the December to the March quarter now. Operator: Our next question is from the line of Stacy Rasgon with Bernstein. Stacy Rasgon: I wanted to ask about the accelerated Apple. The wording on the paragraph in the slide, it sounded like you guys were making the conscious choice not to sell to them nearly as much as you were before. I mean, you sort of blame the supply -- is that true? I mean I don't want to be too dramatic, but are you basically starving Apple, getting them out quicker than you could have and using that silicon to send it elsewhere? I mean is that what's going on? Akash Palkhiwala: Yes. I wouldn't characterize it as such, Stacy. You should think of it as supply -- our supply constraints were a part of it and then where discussions ended up is that we'd have a share less than -- materially less than 20%, and our revenue as a result in '27 from Apple product would be less than the previous guidance we had given, which was a little over $2 billion. The way you should think about '27 is really the growth that we are targeting in the non-handset areas, which we said is going to be greater than 60% on a year-over-year basis will replace the entire Apple product revenue within the year. Stacy Rasgon: Got it. Which must be about $7.5 billion. If I just take the 60% growth year-over-year, that would be something like $7.5 billion in non-handsets. So that's about what the Apple revenue is in '26. And most of that is going away in '27. That's how I should think about it? Akash Palkhiwala: I think that's a fair range of estimate. I think we have given some additional disclosures in our web slides that you can look at to get some precise data points. Stacy Rasgon: Got it. And for my follow-up, I know the gross margins, hopefully, get better over the next several quarters, but you also have data center ramping as well. And you sort of talked to it at the Analyst Day that data center stuff should be dilutive to gross margin. So I mean does it offset some of that gross margin recovery? Or how do I think about that? Akash Palkhiwala: Yes. I think great question, Stacy. So you should think of it as our baseline business has a certain gross margin range, which has been in the 48% to 50% range. And so with the price increases coming online over time, we expect to be at that range. And really, the data center revenue coming in since the first revenue is mostly from custom chip engagements. We do expect that to be significantly lower than our ongoing, kind of, baseline gross margin percentage. And so that will be a drag of 1.5% to 2% on the weighted average gross margin for QCT. Operator: Our next question is from the line of Joe Moore with Morgan Stanley. Joseph Moore: You talked about the stronger automotive ramp exiting the year. Can you just give us a sense of what that mix looks like at this point? How much ADAS is coming into that revenue stream? And then how do you think about future drivers? Do you see ADAS as a bigger driver next year? And do you see any autonomous kind of creeping in? Akash Palkhiwala: Joe, this is Akash. So if you look at the kind of the breakdown we shared at Investor Day, you'll be able to see how ADAS is a significant portion of our design win pipeline, and that's a representation of how revenues will flow through over the next several years. I think one of the key things to take away from kind of our ongoing traction on the revenue side and design win side, in automotive is that we are transitioning to a place where a lot of our engagement across major OEMs is across platforms. So rather than kind of competing for individual sockets, or individual capabilities within the automotive, within a car, we are winning across the board across the entire platform because that just brings a lot of technology synergies to our customers. Cristiano Amon: And maybe, Joe, it's Cristiano. I'm just going to add one thing. We did talk about that before as a driver and that continues to be the case. As you move to our latest generation silicon, the amount of processing capability, it's an order of magnitude increase. We have seen a step function in silicon content. So this OEMs' choices to apply next-generation silicon as part of the mix are actually increasing the automotive revenue, even ahead of our expectations. Joseph Moore: That's helpful. And then separately, just wonder if you could talk about your supply chain, your price increases reflect some input costs coming up. Just how are you feeling about your supply chain? And particularly, are you seeing constraints on the wafer side going forward? Cristiano Amon: Yes. That's a great question. Look, I think the industry now is probably operating very similar to what was in the pandemic. Everything is at 100% utilization, everything. So we're seeing a shortage in price increases across wafers, across assembly, across testing -- testers, everything. The second answer is the same answer, I had -- I was providing, I remember at the time of the pandemic. It's good to have scale. It's good to have scale. It's good to have significant volume across different nodes. This is actually helping us. And you're probably seeing what we did, not your question, but what are we doing on inventory? Inventory also, in times of shortage is a strategic advantage as well. So we're actually very comfortable. Nobody is comfortable. Everybody wants more. I don't -- I have not met anybody that is using leading nodes today that does not want more, but we're comfortable that we have the supply to basically execute on our plans. Operator: Our next question is from the line of Ben Reitzes with Melius Research. Benjamin Reitzes: I wanted to talk about your data center initiative a little bit more. In June, you had enough visibility to double your target. And just wondering if how is the reception outside of the 2 customers? And when you talk about the pipeline and some of the commentary around that, are you implying that there could be more than 2 customers? And how do you see that expanding beyond the current reach? Cristiano Amon: Yes. Very good question. I'm going to break that conversation in probably 2 parts. One is the existing customer engagements. As we said before, we have line of sight to how those things expand across the custom silicon, the beginning of the accelerator with high-bandwidth compute as well as the ramp of the CPU to go from $5 billion to $15 billion. And I think we continue to restate those numbers. I think as we get to $15 billion, you're going to see a combination of multiproduct, multi-generation on the custom ASIC plus the ramp of the accelerator and the CPU. Now the second part of your question is actually the most interesting one, and that's why I provided some commentary in the script. I know everybody will live in an era of everybody wants instant gratification. But the reality is there's a lot of customers that want to see silicon. And that's both true on the accelerator on our HBC plus the accelerator as well on the CPU. So we're actually very happy. Everything is going according to plan on HBC. That's a disruptive technology. I said in my prepared remarks. In the coming quarters, we're going to have silicon, and we are going to be able to do silicon demonstration evaluation. I think that has the potential to unlock new opportunities. We have additional conversation with customers. But the next milestone is Qualcomm, we needed to see silicon and see how it performs before we make a decision that we're marching forward. Benjamin Reitzes: Can I just follow up on the comment around China bottoming. Are you hearing from these customers that they're getting access to domestic Chinese memory and they're feeling really good that they're going to have supply? Or I just think I'm getting some questions after hours is why you have that confidence? And is it sustainable? Akash Palkhiwala: Yes, Ben. So a couple of parts to that question. I think, what we've seen in China is, first of all, our revenue was the lowest in the June quarter, and we are forecasting double-digit increase in revenue in the September quarter, which is the quarter we are in, obviously, very high confidence. And then also going into next quarter. And one of the key drivers there is earlier in the year, the OEMs were buying based on the size of the market, but they were also drawing down on channel inventory. And where we are at now is the channel inventory has thinned down so that they can't draw down anymore. And so we are reconciling -- the revenue is reconciling to the size of the total market. And so that kind of change in profile of purchases is what gives us confidence. To the first part of your question is around Chinese memory. That's certainly been a big part of what the Chinese OEMs use. This is not a new trend. It is something that has existed for the last several years. And certainly, it's something that will strengthen as we go forward. Operator: The next question is from the line of Vivek Arya with Bank of America. Liam Pharr: This is Liam Pharr on for Vivek. I guess just to start, how are you thinking about potential for U.S.-China restrictions impacting your data center business? And how is that factored into your decision-making leading up to kind of this ramp in fiscal '27? Cristiano Amon: For the engagements we have today we're not restricted. And it's within the category of other companies, they're also providing solutions for China. So that is not a concern at this moment. Liam Pharr: And then how are you thinking about handset market TAM for Qualcomm in 2027 if memory prices continue to be a headwind. Is it going to continue to kind of remain suppressed? Or can it rise up to the kind of 5% CAGR that you outlined at the Investor Day? Akash Palkhiwala: Yes. So I think at this point, where we are looking at for the handset market is we think the market will be down low teens relative to '25 -- to '26. And a lot of the impact is in the lower tiers. And so this is largely consistent with how the industry analysts are viewing it as well. The net impact on QCT Android revenue is -- the revenue is down 20% year-over-year and the EPS impact of it is greater than $1.50. So the way we think about it is longer term as conditions stabilize. And with our Snapdragon leadership and the agentic AI transformation of phones, we have the opportunity to reinstate the scale of the handset business and the growth that comes with it. So you should think of this greater than $1.50 of EPS as a potential tailwind for us as we go forward and the markets normalize. Operator: Our last question is from the line of Chris Caso with Wolfe Research. Christopher Caso: My question is on QTL. And it does look like QTL revenues have held up pretty well despite the decline in the market. Do you expect that to continue? And are the QTL revenues helped by any way by some of the price increases that your customers have had to implement? Akash Palkhiwala: Yes, Chris, you should just think of QTL consistent with the model it has, right, which is the -- there is a cap on the total royalties based on the device ASP. And so to the extent that prices go up below the cap, there is some benefit that accrues to QTL. And then above the cap, it really doesn't make a difference in the revenue for QTL. And so this is execution of licenses that we have in place. Christopher Caso: Got it. As a follow-up question, just a question about OpEx and your spending. And you've obviously been ramping spending. You've done some acquisitions, which I assume are now fully reflected in the September quarter guidance. What do you expect to be the trajectory of spending from here now you've had the step up, what kind of color can you give as for spending into next year? Akash Palkhiwala: Yes, Chris, no change to the guidance we provided at Investor Day. You should think of it as we have a current scale of OpEx. Now going forward, it will reflect both obviously Alphawave and now Modular in that scale. We are investing in data center as we execute on the CPU and accelerator road map. So you'll see some growth there, but that's the primary driver of how OpEx plays out going forward. Operator: That concludes today's question-and-answer session. Mr. Amon, do you have anything further to add for adjourning the call? Cristiano Amon: Yes. Thank you. Just before we wrap up, I just want to take a moment to thank our employees, our dedicated employees for their outstanding execution, commitment, especially for a company that is changing, is developing new capabilities. We could not do this without great employees. They are definitely the best part of the whole company. I also want to express gratitude to our customer partners and suppliers, the current environment for the trust they place on us every day. I think the confidence of our customers, its ability that -- give us the ability to deliver on the strategy, which has been instrumental to our success today and will be instrumental to our success in the future. And I will talk to you guys in the quarter. Thank you. Operator: Thank you. Ladies and gentlemen, this concludes today's conference call. You may now disconnect. Before you buy stock in Qualcomm, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Qualcomm wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Qualcomm. The Motley Fool has a disclosure policy. Qualcomm (QCOM) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

JACKSONVILLE, FL / ACCESS Newswire / August 6, 2026 / ParkerVision, Inc. (OTCQB:PRKR) ("ParkerVision" or the "Company"), a developer and marketer of technologies and products for wireless applications, today announced results for the six months ended June 30, 2026. 2026 Summary and Recent Developments Oral argument was held on June 1, 2026 in the Company's expedited appeal of ParkerVision v. Qualcomm (CAFC case no. 26-1033). The appellate court's decision has not yet been issued. The Company has submitted supplemental expert reports in both its MediaTek and Realtek cases that are pending in the Western District of Texas. New trial dates have not yet been established. Jeffrey Parker, CEO of ParkerVision, commented, "We currently find ourselves in a 'hurry up and wait' period as we await a decision from the Federal Circuit on our Qualcomm appeal and revised scheduling orders from the western district of Texas as a result of Judge Albright's imminent retirement from the bench and the assignment of our cases to a new judge. While we are anxious to get through these delays, we remain confident on the merits of our cases and enthusiastic to get these cases to jury trials." Financial Results ParkerVision reported a net loss for the six months ended June 30, 2026 of $1.4 million, or $0.01 per common share, compared to a net loss of $5.4 million, or $0.05 per common share for the six months ended June 30, 2025. The Company used approximately $1.7 million in cash for operations for the first half of 2026 and ended the quarter with $2.5 million in cash and cash equivalents. About ParkerVision ParkerVision, Inc. invents, develops and licenses cutting-edge, proprietary radio-frequency (RF) technologies that enable wireless solution providers to make and sell advanced wireless communication products. ParkerVision is engaged in a number of patent enforcement actions in the U.S. to protect patented rights that it believes are broadly infringed by others. For more information, please visit www.parkervision.com. (PRKR-I) Safe Harbor Statement This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements regarding the timing, scheduling, and expected outcomes of current and future legal proceedings, the Company's expectations regarding such proceedings, and expectations concerning court rulings and trial dates. Forward-looking statements also include estimates and assumptions underlying financial information, including the fair value of contingent payment obligations and the Company's ability to support ongoing operations and litigation. These statements are based on current expectations, estimates, projections, and assumptions as of the date of this release, and involve known and unknown risks and uncertainties that could cause actual results to differ materially. Words such as "believe," "optimistic," "expect," "will," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements include these words. Risks and uncertainties that may cause actual results to differ include, among others: adverse developments or delays in legal proceedings, including changes in litigation schedules; unfavorable court decisions or rulings; the loss or unavailability of key expert witnesses; the availability of funding for continued operations and litigation; changes in the legal or regulatory environment; inaccuracies in financial estimates or assumptions; and risks disclosed in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent filings. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date made. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances. Cindy FrenchChief Financial OfficerParkerVision, [email protected] (TABLES FOLLOW) ParkerVision, Inc.Balance Sheet Highlights ParkerVision, Inc.Summary Results of Operations (unaudited) ParkerVision, Inc.Summary of Cash Flows(unaudited) SOURCE: ParkerVision, Inc. View the original press release on ACCESS Newswire

The next leg of growth runs through AI accelerators, and that is the piece management says carries a gross margin slightly below the company average. Advanced Micro Devices (AMD) reported record revenue for the second quarter of 2026, and on the Wednesday that followed its stock fell 7% while Nvidia rose 3.4% and the broad market barely moved. Revenue grew 50% year over year to $11.5 billion and data center revenue more than doubled. What repriced was not how fast AMD is growing, but the margin its growth now arrives with. The Stock Gave Back A Gain It Booked The Day Before AMD had climbed 7% in the prior session, and the Wednesday session handed the entire gain back. Intel closed slightly higher in the same session, which argues against a chip-sector move. Analysts cited three things: muted upside in the results, expectations that were already high, and a margin outlook that underwhelmed some investors. The third one is the one that matters. The Mix Driving Growth Now Carries A Lower Margin Data center is now 58% of AMD's revenue, up from 42% a year ago, and that shift is what pushed adjusted gross margin to 56%, a step up of 80 basis points from fiscal Q1. Management describes the server CPU side of data center as accretive to the corporate gross margin. The guide stops the climb. AMD guides to about $13 billion of revenue in fiscal Q3, roughly 13% more sequentially, with adjusted gross margin still near 56%. In management's own guide, data center and embedded carry that increase while gaming falls by strong double digits. The reason sits in the mix itself: growth from here runs through Instinct accelerators and the Helios rack systems built around them, and management puts the gross margin on that data center AI business slightly below the company's average. Growth that brings its own margin along is one of the things the Trefis High Quality Portfolio insists on in its holdings, all quality businesses with strong margins and real cash generation. The Line To Watch Is Margin, Not Revenue None of this says demand is soft. EPYC sales grew more than 70% year over year, management calls the server CPU supply chain tight, and AMD expects data center segment revenue to more than double year over year in 2027. One AI customer is set to deploy up to 2 gigawatts of MI450 series GPUs in Helios, and Microsoft is bringing the platform to Azure at scale. The open question is not whether the revenue arrives but what it earns. The fiscal Q3 revenue line is well telegraphed; what settles the argument is whether adjusted gross margin holds near 56% as Helios ships in volume. Until that lands, anyone tempted to treat a 7% drop as an entry is better served by how the stock has actually traded after past earnings reports. A Product Cycle This Strong Can Still Reprice On Mix The demand behind AMD's records is not in doubt, and nothing in this session changed that. What moved was what the market will pay for growth that arrives at a slightly below-average gross margin, and that kind of surprise lands far harder on a single holding than inside a rules-based basket such as the Trefis High Quality (HQ) Portfolio. That portfolio has a track record of outpacing the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000.