Qualcomm Incorporated (QCOM)

“We maintain the position that China handset in Q3 is the bottom.”

“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%.”

“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.”

“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 roadmap ahead of revenue ramp.”

“In QCT Automotive, we expect another record quarter with approximately 60% year-over-year revenue growth.”

“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.”

“We forecast QCT handset revenues to be approximately $5.2 billion, driven by sequential growth in Android, offset by lower Apple product revenues.”

“In QCT, we expect revenues of $8.4 billion to $9 billion and EBT margins of 23% to 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.”

“We are forecasting revenues of $9.7 billion to $10.5 billion and non-GAAP EPS of $2.05 to $2.25.”

“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.”

“We have purchase orders from these engagements and wafer production has started, so we are very confident about these engagements.”

“We're on track to become the #1 automotive semiconductor player by revenue.”

“Our two near-term custom silicon wins will be revenue generating in the December quarter, and we have begun wafer production.”

“This will be a drag of approximately 1.5% to 2% on the weighted average gross margin for QCT.”

“Our baseline business gross margin has historically been in the 48% to 50% range. With the price increases coming online over time, we expect to be in that range.”

“The way to think about '27 is the growth we're targeting in non-handset areas, which we said will be greater than 60% year-over-year, will effectively replace the entire Apple product revenue within the year.”

“As a result, our revenue from Apple products in fiscal '27 will be less than our previous guidance of a little over $2 billion.”

“We expect revenues to grow when we go from December to March now.”

“So the December quarter revenue profile will be a combination of these factors, and we expect it to be slightly up sequentially.”

“Second, Android. We expect Android to grow and significantly offset the reduction in Apple, and data center revenue also starts to ramp in the December quarter.”

“As mentioned in my prepared remarks, we expect materially lower share in the new launches versus our previous estimate of 20%, and as a result we are forecasting approximately a 50% decline in Apple-related revenue from the September to the December quarter.”

“So we don't expect fundamental changes in premium tier volume.”

“Similar to peers, the scale of the increase we are looking at is double-digit and consistent with some actions from other players.”

“Yes. The revenue starts in the December quarter, and you should expect a ramp as we go through the year.”

“But when we get through it, we expect to be consistent with the historical gross margin range we have.”

“We expect this benefit to show up in our gross margins over the next couple of quarters.”

“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.”

“We expect this growth from non-handset revenues in fiscal '27 to replace total Apple product revenues in '26.”

“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.”

“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 two-thirds in fiscal '29.”

“This forecast includes data center revenue growth to $5 billion in fiscal '27 and $15 billion in fiscal '29.”

“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.”

“We expect to demonstrate HBC performance on silicon in the coming quarters ahead of the launch of our first HBC solution in mid-2027.”

“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.”

“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 implementing price increases and as they take effect, we expect to see gross margins realign to our operating model.”

“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 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.”

“By the end of the fiscal year, we will begin commercial shipments of our fifth-generation Snapdragon digital chassis platform.”

“So as we look forward, we feel confident that the third quarter is now the bottom.”

“And Apple, you're right as well that typically, it's a growth quarter for Apple product revenue, and we do not see that at this point given the share assumption change.”

“I think in terms of kind of handset revenues for QCT from Chinese OEMs, we do expect that the June quarter is the bottom, and you will see sequential growth from there.”

“We now estimate that QCT handset revenues from Chinese customers will reach a bottom in the third quarter and return to sequential growth in the following quarter.”

“we expect to exit fiscal '26 at a run rate above $6 billion.”

“Lastly, we forecast non-GAAP operating expenses to be approximately $2.6 billion in the quarter.”

“In QCT Automotive, following another record quarter, we expect year-over-year revenue growth to further accelerate to approximately 50% in the third fiscal quarter.”

“We anticipate QCT IoT revenues to grow by high single digits versus the year ago period, driven by industrial and consumer products.”

“We are forecasting QCT handset revenues to be approximately $4.9 billion as a result of the impact of the industry-wide memory dynamics I just outlined.”

“In QCT, we expect revenues of $7.9 billion to $8.5 billion and EBT margins of 25% to 27%.”

“In QTL, we estimate revenues of $1.15 billion to $1.35 billion and EBT margins of 67% to 71% with sequential decline primarily due to the operating assumption of weaker low-tier handset units.”

“No change, Tim, to our assumption there. We've set of the 20% of the -- 20% share of the phones that will launch in fall this year and no product relationship beyond that.”

“You should expect that that is the framework of this year, and that is also the framework for next year.”

“And specifically on your question on this custom engagement we talked about, we do expect that to be accretive at the operating margin level.”

“Yes. So pending the renegotiation, the royalty, we don't expect it to change, right? It should be in the same scale that it's at, and it's an independent business separate from the chip business.”

“We will have prototype base, I think, demonstrations in 2028. Likely, we're going to have first silicon in '28, and we want early launches in 2029, and then we expect that to get scale by 2030.”

“In terms of Apple product revenue for fiscal '27, we've seen sell-side models in the range of a little over $2 billion in terms of QCT product revenue in the year, and we think that's a reasonable place to model the business.”

“We now expect initial shipments for our custom silicon engagement at a leading hyperscaler later this calendar year.”

“we expect initial shipments in the December quarter.”

“In personal AI, we expect a significant increase in the choice of new smart glasses starting in the second half of the year.”

“Looking ahead to fiscal '27, we expect continued share gains and increased content, particularly in ADAS.”

“And I'll argue, I think given what's happened with agents, we have an opportunity to actually have a positive bias on that share.”

“We remain on track to commercialize 150 Snapdragon X power PCs this year.”

“Our second-quarter guidance reflects the continued revenue acceleration across automotive and IoT, with their combined growth outpacing the run rate required to achieve our long-term revenue targets.”

“We expect to return to our prior run rate and growth trajectory for QCT handset revenues when these conditions normalize.”

“For Samsung's upcoming family of premium-tier devices, we expect approximately 75% share consistent with prior expectations.”

“No. I think, we're expecting gross profit to be large gross profit margin to be largely in line with the December.”

“I think as you go into the next quarter, we are guiding QTL just slightly below what we did last year. So pretty consistent with trend.”

“Specifically, of between quarters, you should think of March as a reasonable way to model June as well. Is really kind of similar seasonality profile that you would seen in other years.”

“I think the seasonality on the handset side, I think you think of the seasonality in the demand from the consumers is going to be consistent with what we've seen in the past.”

“Lastly, we expect non-GAAP operating expenses to be approximately $2.6 billion in the quarter.”

“QCT Automotive, following another record quarter, we expect year-over-year revenue growth to accelerate to greater than 35% in the second fiscal quarter.”

“We anticipate QCT IoT revenues to grow by low teens percentage versus the year-ago period, driven by growth across industrial and consumer products.”

“So we are on track to the commitments we made on the diversification revenues for the company for fiscal 'twenty-nine.”

“We know we don't move with the industry. We move primarily with our share gains. I think we're very excited about the trajectory. I will say we feel good about all the projections we have made about the size of the revenue when you look at our targets for fiscal 2029.”

“As you think about the full year at this point, given the supply, we have a negative bias on units, but really we're going to have to see how it plays out as we go through the through the next several months.”

“We've mentioned previously that we expect this to be a multibillion revenue opportunity in a couple of years.”

“We still restate that we expect 2027 to start showing in revenues.”

“Our assumption for any new Galaxy is always going to be 75%. That's our assumption for Galaxy S26.”

“IoT is similarly positioned, right? We saw significant upside relative to our guidance within the September quarter, and we are positioned to continue to grow revenue starting first quarter going into the rest of the fiscal year as well.”

“We do think that we're in this very strong position as additional cars get launched with our capabilities in them, we will continue to grow revenue through the year.”

“We're not guiding beyond first quarter at this point. But when you look at our strong business momentum exiting fiscal '25, you see the benefit of that showed up in our results also showing up in the December quarter guidance. And so that carries forward into the rest of the fiscal year.”

“With the recent enactment of the One Big Beautiful tax bill, we now expect our non-GAAP tax rate to remain in the 13% to 14% range going forward, and we anticipate lower cash tax payments relative to prior expectations.”

“I mean, as you've seen in the past, we expect our first fiscal and second fiscal quarters to be the stronger quarters in the year. And usually, the June quarter, the third fiscal quarter is a lower quarter.”

“The only additional thing I'd note is just a reminder that we expect to close our Alphawave acquisition in the first calendar quarter of '26.”

“Lastly, we forecast non-GAAP operating expenses to be approximately $2.45 billion in the quarter.”

“In QCT Automotive, following a record fourth quarter, we estimate revenues in the first fiscal quarter to remain flat to slightly up on a sequential basis.”

“Following our outperformance for QCT IoT revenues in the fourth quarter, we expect a sequential decline consistent with last year, driven by seasonality in consumer products.”

“We anticipate record QCT handset revenues with low teens percentage growth sequentially, primarily driven by new flagship Android handset launches powered by Snapdragon.”

“In the first fiscal quarter, we expect to deliver record results with revenues in the range of $11.8 billion to $12.6 billion and non-GAAP EPS of $3.30 to $3.50.”

“I think we're seeing this market take off very fast, especially AI smart glasses. And so we definitely feel like we're significantly ahead of the guidance that we had provided and very significant upside opportunity.”

“In Industrial, increasing customer engagement and growth in design win pipeline, combined with our recent acquisitions to unlock access to 30 million users, underlines our confidence in strong revenue growth through the end of the decade.”

“Across IoT, the increasing importance of artificial intelligence, high-performance, low-power computing and connectivity validated by our 22% year-over-year revenue growth in fiscal '25 reinforces our confidence in achieving our $14 billion revenue target.”

“The accelerating adoption of our Snapdragon Digital Chassis platform and 36% year-over-year revenue growth in fiscal '25 puts us on track to achieve our $8 billion revenue target.”

“We remain on track to achieve our fiscal '29 long-term revenue commitment as outlined at our 2024 Investor Day.”

“What we said before that we expect data center products to start leading to a revenue ramp beginning in fiscal '28. I think as a result of the HUMAIN engagement and our progress on the AI accelerator, I think we're pulling this forward into fiscal '27. So you should expect now from what we said before, I think data center revenue is going to start to become material in fiscal '27.”

“We are very pleased to have HUMAIN as our first customer for these solutions with a target deployment of 200 megawatts starting in 2026.”

“Snapdragon Ride Pilot is currently validated in 60 countries and extends to 100 in 2026.”

“We now expect approximately 150 designs to be commercialized through 2026 and remain optimistic about the continued momentum for Snapdragon-powered AI PCs.”

“Yes, it's upside on that number and success in this area, I think, presents to us a potential multibillion-dollar revenue opportunity in a couple of years, and that's how we're thinking about it right now.”

“And as we go to next year, I think our agreement, as Cristiano outlined, carries over, and we're in a very good position to maintain our scale there as well.”

“I think we've talked about the Apple share dynamic. So that is a factor. But outside of that, I think you should think of this as a very strong quarter for us. Seasonally, the strongest quarter for us is December, and that will still be true regardless of the lower Apple share.”

“We anticipate QCT IoT and automotive revenues to grow by approximately 20% and 35%, respectively, reinforcing our confidence in achieving our fiscal '29 target of $22 billion in combined automotive and IoT revenues.”

“And I think I expect that to continue to accelerate.”

“The way we've managed OpEx over the last several years, you've seen us, a very small growth in OpEx over the last 4 years... to the extent that there are new skills required to execute on the data center diversification assets, we will invest in that. But outside of that, we plan to be pretty careful managing OpEx going forward.”

“Assuming you're asking about the December quarter, note, we expect normal revenue seasonality for all businesses.”

“Lastly, we estimate non-GAAP operating expenses to be approximately $2.35 billion in the quarter.”

“We anticipate QCT handset revenues to grow approximately 5% sequentially consistent with typical historical trends despite lower Apple revenues.”

“As you look forward, the growth opportunity that we have in auto, IoT far exceeds the scale of the Apple revenue. So I think we have the ability to continue to grow revenue and manage the margin profile as a result of it. And so no change to our long-term target margin versus what we've said in the past.”

“we remain on track for more than 100 designs to be commercialized through 2026.”

“We remain on track to meet our fiscal '29 target for combined automotive and IoT revenues of $22 billion.”

“The majority of these programs will launch in the next 18 months across all global regions.”

“we continue to work toward our target of achieving $4 billion in revenue by fiscal '29.”

“we are very optimistic that the targets we laid out replaces that revenue and puts us in a good place from an overall P&L perspective.”

“In QCT specifically, when you look at Android Automotive and IoT, we expect normal seasonality both from a quarter-over-quarter and year-over-year perspective.”

“Lastly, we estimate non-GAAP operating expenses to be approximately $2.25 billion.”

“The X85 will be shipping in handsets, automotive and IoT products starting in the second half of the year.”

“Fiscal Q2 was a strong quarter for industrial IoT with notable new partnerships and recently the completion of two strategic acquisitions increasing our confidence in executing on our industrial IoT revenue target of $4 billion by fiscal 2029.”

“We continue to see strong demand in automotive for the Snapdragon Digital chassis and we are on course to reach our fiscal 2029 revenue target of $8 billion.”

“We remain confident in our ability to achieve $2 billion in XR revenues by fiscal 2029.”

“Just want to maybe as a reminder, when you go back to our Investor Day, we're kind of projecting 12% share by fiscal 2029.”

“we're targeting more than 100 designs to be commercialized to 2026.”

“We remain excited about the PC opportunity for Snapdragon and we're making progress toward achieving $4 billion in revenues by fiscal 2029.”

“we remain focused on driving the next wave of AI smartphones and growing our non-handset revenues to $22 billion by fiscal 29th.”

“We do not see any material direct impact to us at this point, the landscape obviously is dynamic, so we're closely monitoring, but we're very focused on things we control and very focused on supporting our customers as well.”

“The ASPs as content increase, which we've talked about, we've seen consistently that continue to increase over the last several years. And as we look forward, we think that's very sustainable, just we're adding a lot more capability to the device and the consumers are looking for that opportunity.”

“As we've said in the past, our objective there is to reflect the cost increases in ASPs over a period of time.”

“So I don't think it fundamentally changes the seasonality across the quarters.”

“So as a result, we expect kind of first quarter to be the high point from an EPS perspective and third quarter is the low point because you don't have as many flagship launches in it.”

“We also recently signed Transsion to a long-term 4G license in addition to the 5G license signed in the last fiscal year. With these additional long-term agreements, we expect fiscal ‘25 QTL revenues to be consistent with fiscal ‘24.”

“Lastly, we estimate non-GAAP operating expenses to be approximately $2.25 billion.”

“We expect IoT and automotive revenues to grow by approximately 15% and 50% respectively versus the year-ago period, driven by the strong product momentum I just outlined.”

“We remain very pleased with the execution of our QTL business in recent years and were well positioned to maintain fiscal ‘24 revenue scale going forward.”

“We are committed to achieving $22 billion on non-handset revenues by 2029 as outlined during our 2024 Investor Day.”

“We expect 20% share for the launch that happens in 2026, and the current agreement ends after that. We're assuming no renewal, which means nothing in 2027.”

“Our design win momentum in PCs has also increased, with more than 80 designs in production or development on our category-leading Snapdragon X series platforms, and we're targeting more than 100 designs to be commercialized through 2026.”

“In terms of historical reference point, in the past we've seen that when subsidies have come in, it has improved the size of the market. So there is an opportunity that comes with it, but it's not something that is contemplated yet in our second quarter guidance.”

“Maybe one last point is, if you think about our guidance quarter, December quarter, we do not have any Huawei product revenue in our guidance.”

“So what we're guiding in first quarter is really largely in line with fourth quarter, and we think that's kind of a reasonable way to model the business going forward.”

“Lastly, we estimate non-GAAP operating expenses to be approximately $2.2 billion.”

“Following our outperformance in the fourth quarter, this forecast reflects a seasonal sequential decline consistent with the last 2 fiscal years.”

“This forecast includes greater than 40% sequential revenue growth from Chinese OEMs and the acceleration of flagship Android handset launches powered by our recently announced Snapdragon 8 Elite platform.”

“For the first quarter of fiscal '25, we are forecasting revenues of $10.5 billion to $11.3 billion and non-GAAP EPS of $2.85 to $3.05.”

“And we see ADAS having some traction, some deployments right now, but it's going to ramp over the next couple of years. And that becomes kind of another inflection point in our revenue growth going forward.”

“Our planning assumption has been that the share will ramp down to 20% for the '26 launch, and the agreement ends after that.”

“I think as you look forward beyond fourth quarter into fiscal '25 using fourth quarter as a way to model the going-forward path is a reasonable way of thinking about it.”

“So net of all of this, when you look at a year-over-year basis, we expect revenue to be largely -- revenue growth to be largely consistent with the year-over-year growth we saw in December quarter last year.”

“Sure, Stacy. So as you know, well, we typically grow into the first quarter into the December quarter, and we're expecting that it's a seasonally strongest quarter of the year going forward.”

“as the same thing we did with auto, we expect PC to be the next biggest driver of diversification for the company, and we'll continue to track every quarter.”

“Lastly, we expect non-GAAP operating expenses to be approximately $2.2 billion.”

“We expect QCT IoT revenues will increase by low double-digit percentage sequentially, driven by growth across consumer, networking and industrial.”

“We are forecasting revenues of $9.5 billion to $10.3 billion and non-GAAP EPS of $2.45 to $2.65.”

“Second, our license to export products to Huawei, which was set to expire in late calendar '24 was revoked on May 7. This change will impact our revenues in both the current quarter and the first quarter of fiscal '25.”

“And as Akash said in the script, we're actually on track to the metric we provided for $4 billion in 2026.”

“we forecast about 50% of our computers sold in 2027 will be AI PCs.”

“In automotive, we are pleased that our design win pipeline has increased from $30 billion in September '22 and to approximately $45 billion, providing confidence in executing to our long-term revenue targets.”

“We're growing faster than the addressable market and remain on track to achieve more than $4 billion of automotive revenues in fiscal '26.”

“But if you kind of take the current run rate and extend it forward towards the $4 billion target, kind of generally slope x -- slope growth increase between the 2 data points is a reasonable way of thinking about it.”

“What we outlined in the Q is since the devices will eventually transition all to 5G, we don't expect any revenue from Huawei product business in '25.”

“Just maybe in our June quarter guidance, there isn't material PC volume forecasted in our numbers.”

“As those devices started ramp up in volume. And since a lot of them are going to be back to school, it's going to be more of a fiscal '25 event in terms of being material within the IoT segment.”

“So it's -- as we had outlined at the beginning of the year, we would see improvement through the year, and that trend is holding, and we expect it to hold in the fourth fiscal quarter as well.”

“And then now we're guiding low to mid-single-digit growth into the September quarter.”

“Specifically, as you think about fourth quarter, we expect the EPS growth from third to fourth quarter to be consistent with fiscal '23, and then we'll grow beyond that into the December quarter.”

“So as we go from third to fourth quarter and then into fiscal first quarter, which is the December quarter, we expect growth as new launches of phones happen across all major OEMs.”

“In addition, we're excited about the launch of our next-generation AI PCs powered by our Snapdragon X Elite and X Plus platforms from all leading PC OEMs starting in mid-'24.”

“Lastly, we expect non-GAAP operating expenses to be approximately $2.2 billion.”

“We expect QCT IoT revenues to grow sequentially by low to mid-single-digit percentage as we continue to see a gradual recovery from the macro factors impacting the industry.”

“Consistent with our previous comments, we anticipate QCT handset revenues to decline by mid-single-digit percentage sequentially, reflecting a seasonal trend due to the absence of flagship handset launches in the quarter.”

“We are extending the most sought after 8 Series capabilities, including on-device AI to a broader range of flagship and high-tier smartphones with the new Snapdragon 8S Gen 3 and Snapdragon 7 Plus Gen 3 mobile platforms launching in the second half of 2024.”

“We're still maintaining the same date, which is driven by Windows, which is mid-2024, getting ready for back-to-school”

“As consumers demand more capability, we see our content and our ASP both continue to grow.”

“In the GS24 that just launched and consistent with what we said on the last quarter, we expect to have a majority share based on the model split between us and [indiscernible].”

“Within QTL, I will stick with the guidance we have given before. We think there's a scale to the business that's aligned with the handset market and the 2 will move in line.”

“And as a result, you kind of see a decline in third quarter then growth back into the fourth quarter.”

“No change to the shape of the year comments that we made last time. Following second quarter, we do expect third quarter to be the lowest quarter.”

“And consistent with our previous comments, we think the first quarter was the bottom for our IoT revenue stream. We're guiding second quarter up mid to high-single digits.”

“And if you look at our second quarter guide, we are guiding largely in line with how our first quarter came in.”

“I think we need to monitor the situation. But eventually, at a minimum, is going to have a favorable impact on mix, which is a trend that we continue to see premium and high tier with more computing power -- is the fastest-growing segment in the handset market.”

“We do not expect any material change in QTL licensing revenue run rate as a result of these extensions.”

“Lastly, we expect non-GAAP operating expenses of approximately $2.2 billion.”

“For QCT handset revenues coming off strong performance in the first fiscal quarter, we anticipate Android revenues will be approximately flat quarter-over-quarter.”

“Devices powered by Snapdragon X35 are expected to launch by the first half of 2024.”

“We expect Snapdragon X Elite to set the industry benchmark for on-device gen AI and copilot experiences in addition to leading performance and battery life for next-generation Windows PCs.”

“So we're on track for that. And the next quarter, we're going to give you an update on the design win pipeline that continues to grow.”

“We'd like, I think the direction that we have been going as we said, we will continue to retain, majority share at Samsung.”

“So if you look at our last three year trend, we've added, approximately 10% increase in any tier of chipset every year. And we think as we look forward, we have the opportunity to do that, going forward.”

“From an ASP perspective, because of all the factors we discussed earlier in the call with the chips becoming way more capable, especially with GenAI, we think we are on a good trajectory to continue to expand our ASP consistent with the last three year trend.”

“But specifically on 5G units, which is really our target market, we expect high single digit to low double digit growth from 2023 into 2024.”

“I remind everyone that PC is in there, which is, likely going to be material in fiscal ‘25, if you think about devices with the X Elite or launching towards the second of ‘24”

“Going forward, we don't expect to have any significance, it's going to be a very small, I think, contribution from Huawei.”

“That CPU was coming to mobile especially in ‘25, and we expect even more, I think, evolution of Gen AI.”

“There's the upcoming launch of the GS24. We expect to have the majority share.”

“On a sequential basis, we estimate double-digit percentage growth for QCT handset revenues and anticipate both IoT and automotive revenues to decline consistent with last year.”

“In QTL, we estimate revenues of $1.3 billion to $1.5 billion and EBT margins of 70% to 74% with sequential growth driven by an increase in global handset units for the holiday season.”

“In the first fiscal quarter of ‘24, we are forecasting revenues of $9.1 billion to $9.9 billion and non-GAAP EPS of $2.25 to $2.45.”

“We look forward to PCs powered by Snapdragon X Elite from leading OEMs starting mid 2024.”

“For the iPhone that is launching this year, we are going to support the modem. We're not making any updates to our prior plans for 2024.”

“As you know, we expect to be a majority of the share in the new upcoming launch, and so it's not really a share question.”

“From an Android perspective, we expect the quarterly trend to be consistent with history.”

“we're guiding approximately flat margins going into September from June. And that's a reasonable way of forecasting our margins going forward as well. So we expect to be in the range as we go forward.”

“I think if you look at our history, with the growth in the smartphone market, we see QTL grow with it. And so we expect a similar gain this year.”

“Our forecast for September and December quarter does assume no material revenues from Huawei.”

“First is QTL, and we expect to see that growth as the market grows as well. And then second is handset launched by a modem-only customer. Off of the base we have in September, we expect to see that growth as well.”

“Our forecast does assume sequential growth into the December quarter as we go into the holiday season.”

“In the first fiscal quarter, we expect 2 drivers of sequential revenue growth. QTL seasonality and handset launch by a modem-only customer.”

“In QCT, we expect revenues of $6.9 billion to $7.5 billion and EBT margins of 24% to 26%.”

“we're taking a conservative view of the market, and we'll be proactively taking additional cost actions to ensure Qualcomm is well positioned to deliver maximum value for stockholders in an uncertain environment.”

“We're helping enable this capabilities and expect Gen AI use cases to extend to XR, edge networking and industrial IoT.”

“Just to be clear, in the guidance that we're giving at this point, we are not including those, and that would be upside to our plan.”

“Until we see sustained signs of improving fundamentals, our operating framework does not assume an immediate recovery.”

“We are on track to meet our commitment of a 5% reduction in non-GAAP operating expenses relative to our fiscal '22 exit rate.”

“We do -- we are working on some new designs on ADAS that is going to take us throughout the second half of the year, but we're not announcing at this time.”

“The other two factors to keep in mind is we had a price increase from foundry that ran through starting first of January as well, and some underutilization in our RF front-end fabs that over time will get filled back in as demand comes back, and so that should be a tailwind for us going forward.”

“As the environment continues to evolve, we will evaluate and execute additional cost-reduction opportunities to help exceed our operating expense target.”

“In the coming months, we will significantly improve performance and be able to run models in excess of 10 billion parameters locally on the device, and we will increase this capability substantially for our products in 2024.”

“Our next-generation Snapdragon Compute platform, with custom Orion CPUs and industry-leading AI acceleration, is on schedule to enable commercial device launches in 2024.”

“As a result, we're operating under the assumption that inventory drawdown dynamics remain a significant factor for at least the next couple quarters.”

“And then obviously, as we go from there, you go into holiday season, that's typically a strong quarter for us and we would realize benefits as we go there.”

“Since it remains difficult to predict the timing of a sustained recovery, we are operating under the assumption that the inventory drawdown dynamics will remain a significant factor for at least the next couple of quarters.”

“So, we’re working with our suppliers, and we’ll kind of normalize it over time, and we feel confident we can do that.”

“From a handset perspective, what we’ve assumed in the March quarter is a standard seasonal decline”

“And as we look forward, we are continuing to see demand for additional functionality.”

“We’re guiding similar margins into the second quarter.”

“This reflects the typical calendar year increases for certain employee-related costs, offset by the savings from our cost reduction actions.”

“Snapdragon Satellite will provide global connectivity for messaging, utilizing Iridium’s weather-resilient L-band spectrum and will initially be available on next-generation premium smartphones using Snapdragon 8 Gen 2 within the second half of 2023.”

“Combined with the actions we have already taken in the quarter, we expect to reduce non-GAAP operating expenses by approximately 5% relative to a run rate exiting fiscal ‘22.”

“We are now expecting elevated channel inventory levels to persist at least through the first half of calendar ‘23.”

“And we will see an opportunity for the mid and the low tier to come back and our design traction is good in those tiers with the OEMs, and we’ll see what happens.”

“We feel pretty bullish about ADAS materializing from the pipeline into revenues in the next few years.”

“So let me give you the first answer. The way you should think about our auto, we have been -- you have the telematics business. Then you have the digital cockpit that was a big component of the design pipeline, and those are turning into revenue. And then the next one after that is ADAS. So we expect the story of Qualcomm automotive has been about the pipeline materializing into revenues and continue to generate growth, less impacted by the short-term markets.”

“At this point, we are not expecting normal seasonal volume increase into December.”

“whereas our share from 75% in GS 22 goes up to global share in GS 23.”

“You should assume that the mobile market is going to continue to do its thing and we're going to have a product cycle transition. We expect in the March quarter also to see the benefit of our increased share of Samsung.”

“We expect to see ASP going up.”

“However, we actually see as we go to next-generation possibilities for ASP to increase because we're actually increasing processor content, and we're very well positioned for the premium tier.”

“we are assuming minimal contribution from Apple product revenues in fiscal '25.”

“For Apple product revenue, we now expect to have the vast majority of share of 5G modems for the 2023 iPhone launch, up from our previous 20% assumption.”

“Looking forward, we expect growth to be driven by our strong design win pipeline for 5G and WiFi 7 platforms across handsets, automotive and IoT.”

“On a year-over-year basis, we still expect revenue growth across IoT and automotive.”

“Following the record performance in fourth quarter, we expect our handsets and IoT revenue streams to be down sequentially due to the impacts I just described.”

“we estimate that there are roughly 8 to 10 weeks of elevated inventory in the channel.”

“We expect to see an inflection point in Windows on Snapdragon PCs in 2024 based on a significant number of design wins to date.”

“We anticipate automotive revenues will grow consistent with our auto Investor Day projections as the design win pipeline materializes.”

“We are very focused on returning most of our free cash flow to the shareholders. That’s something that we have prioritized over the last several years. We’ve been very aggressive with it, and we are planning to continue to do that.”

“You should be thinking about we’re going to be much better than that on Galaxy S23 and beyond.”

“As Cristiano mentioned on RF front-end, of course, we’ll benefit from the transition to 5G, which as markets like India start deploying 5G later this year, we’ll see the benefit of expansion of SAM since 5G is where we really play there, and then also for auto and IoT expansion opportunities there.”

“It's now an environment as supply gets normalized as we predicted for the second half, we have an opportunity to win a lot of the sockets in the mid, low and that’s definitely an upside to our model.”

“December, end of December is when they start launching phones, both going into holiday season and then going into Chinese New Year. So, we expect to see the seasonal benefit of that.”

“We expect to be focusing on driving growth in auto and IoT.”

“We do expect it to be calibrated by some of the same factors that we saw impacting us in fourth quarter, but still expect strong growth rates as we look out to the December quarter.”

“We’re still going to see flagship device launches and holiday season increases that will benefit our financial performance. And we’ll see -- we are forecasting growth from third fiscal to fourth fiscal quarter, and we’ll see growth again going into the first fiscal quarter.”

“As you know, December quarter is seasonally a strong quarter for us, both up for the QCT handset business and the QTL business. So that remains unchanged.”

“With our continued focus on diversification, we are forecasting RF front-end, IoT and automotive combined revenues of greater than $12 billion in fiscal ‘22.”

“QCT handset revenues are on track to grow slightly below 50% relative to fiscal ‘21, driven by increased processor content and expansion of our addressable market.”

“Based on the midpoint of our fourth quarter guidance, we’re expecting fiscal ‘22 to be an exceptional year. We expect non-GAAP EPS of $12.55, a growth of $4 for fiscal ‘21.”

“We anticipate non-GAAP operating expenses to be up 6% to 8% sequentially, with approximately half of the growth due to the inclusion of 2 quarters of expenses for the Arriver acquisition.”

“In IoT, we are seeing strength across industrial and enterprise, which is offset by pockets of weakness in consumer products.”

“In handsets, while Snapdragon premium tier volume remains resilient, our guidance assumes lower demand in other tiers, reflecting the updated global handset forecast.”

“At the midpoint, this implies year-over-year revenue growth of 27% and EBT dollar growth of 31%.”

“The midpoint of our guidance includes an estimated impact of approximately $0.20 due to the macroeconomic headwinds and the reduction in the global handset forecast I just outlined.”

“Conviction is very high. And I'll point you to something that I would encourage, I think, you all to observe what's happening in the market... I think we're very confident that Samsung relationship is going to continue to be an expanding relationship for us.”

“We still have more demand than supply across all business.”

“As we continue to expand, we remain on track to meet our Investor Day financial projections, and I will now provide an update on our progress to date.”

“So we feel pretty good about ability to meet what we outlined at Analyst Day.”

“Development is on track, and we expect to have that in late 2023.”

“Also, if you look at the September quarter, we're seeing strong demand across our diversification plan. So that's playing out as or better than we had expected. And so IoT, automotive and RF front end, we also expect strong year-over-year growth in those areas into the September quarter.”

“From a September quarter perspective, as you know well, it's kind of the quarter where we start seeing the second inflection point of the year for us, where we have flagship launches late in the August, September time frame going into holiday season. So we still expect that to happen, and that's going to help our performance as we go into those 2 quarters.”

“In handsets, it is a good story. I think Akash outlined, we're growing year-over-year for fiscal '22 in the order of 50%.”

“We anticipate non-GAAP operating expenses to be up 5% to 7% sequentially, reflecting select investments in product road map.”

“On a sequential basis, we expect mid-single-digit revenue growth in IoT and automotive and a seasonal reduction in handsets and RF front end.”

“We estimate Arriver non-GAAP operating expenses of approximately $50 million per quarter.”

“Lastly, demand remains strong across all our technologies and continue to exceed supply. We believe our multi-sourcing and capacity expansion initiatives will continue to provide incremental improvements towards supply throughout the year.”

“Sure. Joe, its Akash. If you go back to what we said at Analyst Day and the target that we set for the RF business, really, no change there, '22 is playing out as we expected. It's on-track to position us to achieve the target that we laid out.”

“And then we have -- the next inflection point will be the holiday season. And I think this is all contemplated in our guide. And the market -- we continue to see demand high.”

“But -- and as we said, supply is going to get better as we get to the second half of 2022.”

“Not really. It will be consistent with our historical seasonality. The one thing to keep in mind is as we closed the Veoneer transaction, they'll become a factor in our OpEx trend going forward.”

“As I said in my prepared remarks, we expect auto and IoT to see strong sequential growth in the second quarter and also a strong year-over-year growth. As you look at the second half of the year, you're going to see the same trend, strong year-over-year growth across the board.”

“Stacy, no change on the framework that we've given on buybacks before. We're continuing to focus on prioritized anti-dilutive buybacks and opportunistically look for -- on top of that, if we can do additional buybacks.”

“And as you'll see in the guidance that we gave, we are still continuing to be optimistic with the gross margin picture.”

“And as we expect supply improvements throughout the year, I think we'll be able to continue to drive growth in all business.”

“We will still have more demand than supply in all the growth business. As we go through the next quarter, you're going to see the growth business, and a lot of the non-handset business could growing, and then the next inflection point for handsets is the holiday season, which is our September quarter.”

“And so it's something that we'll definitely do as we get to the June quarter.”