August 4, 2025 /SemiMedia/ — Qualcomm’s smartphone-related revenue rose 7% to $6.33 billion in its fiscal third quarter ended June 29, falling short of analysts’ average estimate of $6.48 billion. The miss fueled growing concerns that the chip industry’s recent recovery may be short-lived, especially after cautious outlooks from Texas Instruments and Intel.

Following the earnings release, Qualcomm’s shares dropped more than 6% in after-hours trading. The company’s stock has underperformed the broader semiconductor sector this year.

Total revenue rose 10% to $10.37 billion, beating the Street’s estimate of $10.33 billion. Non-GAAP earnings came in at $2.77 per share, slightly above expectations of $2.72.

For the September quarter, Qualcomm forecast revenue between $10.3 billion and $11.1 billion. Analysts had projected $10.6 billion.

In its diversification efforts, revenue from automotive chips increased 21% to $984 million, while IoT-related semiconductor sales grew 24% to $1.68 billion, indicating growth beyond its core mobile business.

Still, Qualcomm continues to face long-term challenges as Apple pushes ahead with in-house modem development. While delays have slowed the transition, Apple has already started using its custom modem in the lower-end iPhone 16e. Qualcomm has warned investors that it expects to be fully replaced in iPhones over time.