QCOM: Revenue Grows, But Apple Exit Looms — While $QCOM Settlement Still Weighs

Court: S.D. California

Case: 3:17-cv-00121

Qualcomm QCOM reported fiscal Q3 earnings that topped EPS estimates but fell short in key revenue areas, triggering a 4% decline in share price. The semiconductor giant is bracing for a major shift as Apple transitions to in-house modem chips, with analysts projecting constrained revenue growth through FY26.

Key Highlights

• Fiscal Q3 revenue rose 10% year-over-year to $10.37B
• Adjusted EPS hit $2.77, beating consensus by $0.07
• QCT revenue (smartphone, auto, IoT chips) came in at $8.99B, below expectations
• Fiscal Q4 guidance: revenue of $10.3B–$11.1B and EPS of $2.75–$2.95
• JPMorgan expects "single digit" growth in FY26–FY27 due to Apple departure

But the QCOM Settlement Still Weighs

Timeline Overview

• January 17, 2017: FTC filed a complaint alleging Qualcomm engaged in anticompetitive practices
• January 18, 2017: Major news outlets reported Qualcomm’s licensing abuses
• January 19, 2017: QCOM stock fell 18.3%
• January 23, 2017: Investors sued Qualcomm over licensing practices and reporting weaknesses

Allegations Include

• Overcharging for licenses and withholding chips from non-compliant customers
• Granting reduced royalties to Apple in exchange for exclusivity
• Violating fair, reasonable, and non-discriminatory (FRAND) licensing obligations
• Failing to maintain proper financial reporting controls

Investor Update

Qualcomm has reached a settlement with investors to resolve class action claims over its anticompetitive behavior and weak disclosures. Although financial specifics remain undisclosed, the resolution clears a key legal overhang as Qualcomm navigates a post-Apple future.

You can check more information about it and file for a payout HERE.