Qualcomm's third-quarter earnings beat Wall Street expectations, driven by a solid 12% year-over-year increase in smartphone chip sales, its biggest and most critical business segment. The company's overall revenue for the quarter reached $9.39 billion, exceeding the anticipated $9.22 billion, while adjusted earnings per share came in at $2.33, higher than the expected $2.25. Net income rose to $2.13 billion, or $1.88 per share, up from $1.8 billion, or $1.60 per share, in the same period last year.Qualcomm's handset revenue rose to $5.9 billion in the traditionally slower summer months for smartphone sales, signaling a recovery from the deep slump in smartphone sales over the past two years. The company is positioning its advanced Snapdragon chips as essential for "AI smartphones," enhancing its appeal in the premium market segment.Qualcomm's automotive chip sales surged by 87% year-over-year to $811 million, significantly beating the expected $641.7 million, underscoring the company's potential for future growth and diversification in the automotive sector. Although IoT revenue fell 8% to $1.4 billion, it still surpassed expectations, highlighting the success of new product launches like the Snapdragon X Elite for Windows laptops.What Does This Mean for Me?Despite a setback from losing a U.S. export license to Huawei, Qualcomm remains committed to returning value to shareholders. During the quarter, it paid $949 million in dividends and repurchased 7 million shares for $1.3 billion.