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I want to talk a little bit about those Qualcomm earnings and also the results that we got from ARM Holding. Let's get to it with Jackie Devalos. She follows the tech sector for us here at Bloomberg and she joins us now. So Jackie, let's start with Qualcomm, because we definitely did see a big bump up in the aftermarket trade. Tell us about the results and what stands out for you.
Well, there's a few things here that investors were looking for, and the first really starts off with the forecast. The company said it's going to be bringing in somewhere between ten point five billion to about eleven point three billion. That beat estimates, which was coming in at the lower end of ten point five billion, so that was a solid beat. Profit also is expected to come in at around three dollars in a nickel per share, also beating
expectations by margin. But overall, these higher level results represent kind of a recovery in this very important part of the business for the company, which is it's smartphone sector. China in particular has been kind of a question mark. You know, you've seen this slump in this in the smartphone market broadly. But Qualcom said that China sales of some of its Android based phones actually increased about forty percent,
which is a really bullish sign for the company. Of course, Qualcom gets sixty percent of its revenue from the smartphone business, so overall, this is a good sign that it is kind of kind of overcoming the broader challenges in that market.
Can we look at Apple as like, look at this as a bell weather for Apple? I mean, look, we already heard from Apple, but this is a company, right that gets twenty seven percent jackie of its revenue from from Apple, twenty one percent from Samsung, and then it goes down to Shaumi at five point five percent. So can does this tell us? Does it give us any insight into how Apple's doing?
You know, it could offer some signs there because you know, if anyone's going to feel at first it is a company like Qualcom, so of course we can kind of gather perhaps an early sign there that perhaps that market is seeing a little bit of a recovery. We'll just have to kind of wait and see for Apple's results in the meantime, just kind of knowing how this kind of at this part of the supply chain, what the recovery is looking like. Forty percent increase, that's not nothing,
It's fairly substantial. So I think, you know, for other businesses that depend on smartphones kind of moving over to arm for example, you know, who was also incredibly dependent on that, but their story is a little bit different in that the bar was a lot higher because of this AI expectation. Now a lot could be kind of deduced that maybe investors are just kind of thinking this is a little bit you know, it's run its course.
Its revenue numbers came in, you know, at one eight hundred and forty four million, that beat expectations for this for this quarter at eight hundred and ten million beat there. Its revenue forecast was the midpoint was a little bit lower than what investors had been forecasting. But again, I think this is more of the AI story and the disappointment there.
Yeah, yeah, yeah, Hey, listen, I'm just curious as we watch these stocks in the aftermarket, and certainly we'll probably maybe you know, touch on them tomorrow as well. Is there let's go to Qualcom first. Is there a number one question that's top of mind that you think analysts need to be asking on the call.
I think they will want to know how lasting this China recovery is. Looking they maintained their guidance for the year. I think for the next couple quarters there there's a lot that can change. Clearly, that market is the most vulnerable out of its kind of it's entire portfolios. So I think the longevity of that recovery is something they'll be asking about.
What about ARM? Looking at shares a ARM in the after hours right now, bouncing around but down about three percent as we speak. As a reminder, second quarter revenue came in above estimates. Again, you know, this is when we're talking about a company that does chips looking at revenue for a quarter of eight hundred and forty four million.
I know, I know, it's a different scale.
It's a different scale than a company like a you know, if we'll hear from later this month, go ahead, Jackie.
One sign there that that is a positive maybe they're not getting credit for is that profit analysts we're expecting around thirty four cents, and they projected that in this current quarter, it's going to come in somewhere between thirty two and thirty six. That's kind of, you know, pretty much in line. I think the big question there is how much are you diversifying that revenue base, how much of this is coming from AI? Is it paying off?
Perhaps that bar, like I said, is a little bit higher, but any insight into you know, whether those profits are being generated from that line of business will be fairly key.
All Right, We're gonna leave it on that note. Hey, listen, Jackie, thank you so much for walking us through. Jackie Devalos with a lowdown on both qualcommon arm holdings. As we said, both of them are moving in the aftermarket.