Qualcomm Sales Beat Estimates, But Shares Fall On Licensing Forecast

Qualcomm has reported better-than-expected sales and profits, driven by demand for artificial intelligence (AI) features in smartphones.

Qualcomm projected sales with a midpoint of $10.75 billion and adjusted earnings of $2.80 per share—both exceeding analyst estimates of $10.34 billion in revenue and $2.69 per share in profits. I Photo: Nathan Rupert Flickr

However, its shares fell after the company forecast flat revenue in its patent licensing business, Reuters reporters Stephen Nellis and Arsheeya Bajwa wrote.

For its current fiscal second quarter, Qualcomm projected sales with a midpoint of $10.75 billion and adjusted earnings of $2.80 per share—both exceeding analyst estimates of $10.34 billion in revenue and $2.69 per share in profits, according to LSEG data.

During a conference call with analysts, Qualcomm executives cautioned that revenue from its lucrative patent licensing division, which charges manufacturers of 5G-connected devices a small fee for its technology, would remain flat this year.

The slowdown follows the expiration of a key agreement with Huawei Technologies.

Shares declined 4.8% after the earnings report and executive comments. Investors have been looking for strong AI-driven growth, and Qualcomm’s stock had already rallied 14% in 2025, significantly outperforming the S&P 500’s 3% gain.

Last year, Qualcomm stopped selling chips to Huawei but continued licensing its technology to the Chinese telecom giant. Analysts estimate that the expired Huawei deal had contributed between 10 and 15 cents per share to Qualcomm’s profits.