In the quarter ending June 23, Qualcomm reported an adjusted earnings per share (EPS) of $2.33, surpassing the expected $2.25. The revenue reached $9.39 billion, higher than the anticipated $9.22 billion, primarily driven by significant growth in the smartphone business, which saw a 12% increase to $5.9 billion.

Apart from its smartphone chip business, Qualcomm also experienced strong growth in the automotive and IoT sectors. Automotive revenue surged 87% year-over-year to $811 million, far exceeding analysts' expectations of $641.7 million. This highlights Qualcomm's strategic push into the automotive market, aiming to embed more software and semiconductors in vehicles. Despite an 8% year-over-year decline in IoT revenue to $1.4 billion, it still surpassed expectations.

Qualcomm continues to lead in technological innovation, with the introduction of advanced products such as the Snapdragon X Elite PC chip. CEO Cristiano Amon stated that this launch marks the company's transformation from a traditional communication company to a leader in intelligent computing. The strategy includes capitalizing on the growth of AI-integrated devices by enhancing performance and AI capabilities through Snapdragon chips.

Revenue from 5G and other communication technology licenses grew by 3% to $1.3 billion. However, the company faces challenges as the US has revoked its license to export products to Huawei, which is expected to impact future revenue. Despite this, Qualcomm's overall financial health remains robust, with total dividend payments and stock repurchases amounting to nearly $2.25 billion this quarter.

Looking ahead to the fourth quarter, Qualcomm anticipates EPS to be between $2.45 and $2.65, and revenue to be between $9.5 billion and $10.3 billion, both exceeding current analyst expectations. This optimistic outlook reflects the company's confidence in the continued growth of its diverse business segments, particularly in the high-end smartphone market and the expansion into automotive and IoT sectors.