Citigroup's report stated that Qualcomm's Q3 revenue for the 2024 fiscal year was flat quarter-on-quarter, reporting $9.39 billion, higher than the market and the bank's expected $9.2 billion and $9.25 billion respectively, mainly due to increased sales of internet of things (IoT) and automotive chips. The gross margin including stock-based incentives was 55.9%, in line with market expectations, but lower than the bank's expected 56.5%; earnings per share were $1.93, higher than market and the bank's expectations.

Qualcomm's guidance for Q4 revenue in the 2024 fiscal year is $9.9 billion, up 5% quarter-on-quarter, higher than market and the bank's expected level of $9.75 billion, mainly due to strong performance from Apple (AAPL.US) and an extra week in the quarter. The group forecasts earnings per share (including stock-based incentives) for the fourth quarter at $2.11, higher than the market and the bank's expected $1.98 and $2.04.

The bank believes that although Qualcomm's performance and guidance are good, without a "killer application", it is believed that the smartphone upgrade cycle driven by edge artificial intelligence will take at least another year to appear. The bank revised its revenue and earnings per share forecasts for Qualcomm's 2024 fiscal year from the original $38.3 billion and $8.1 to $38.6 billion and $8.27. Maintaining the company's revenue and earnings per share forecasts for the 2025 and 2026 fiscal years at $41 billion and $9.29, and $41.5 billion and $9.43 respectively. It also reiterates its "neutral" rating on Qualcomm with a target price of $200.