Qualcomm

Semiconductors • Technology • San Diego, CA, United States • QCOM (NMS)

858 587 1121 5775 Morehouse Drive, San Diego, CA 92121-1714, United States

Quarter: Q4 2025 Reported: November 5, 2025 Sentiment: Positive

QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software with connectivity and computing technologies for use in mobile devices; automotive systems for connectivity, digital cockpit, and ADAS/AD; and IoT, including consumer electronic devices, industrial devices, and edge networking products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing LTE, and/or OFDMA-based 5G products and derivatives; to use cellular standard-essential patents, including 3G, 4G and 5G for cellular devices. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and sells related products to the United States government agencies and their contractors. In addition, the company is also involved in Qualcomm government technologies and data center businesses. QUALCOMM Incorporated was incorporated in 1985 and is headquartered in San Diego, California.

Analysis Summary

Qualcomm concluded fiscal year 2025 with impressive financial performance, primarily driven by its Qualcomm CDMA Technologies (QCT) segment. QCT revenues for the fiscal year reached $38.37 billion, marking a significant 16% increase year-over-year. This growth was fueled by a 12% rise in Handset revenues to $27.79 billion, a robust 36% surge in Automotive revenues to $3.96 billion, and a 22% increase in IoT (Internet of Things) revenues to $6.62 billion. Notably, total QCT non-Apple revenues grew 18% year-over-year, and the combined Automotive and IoT revenues expanded by 27%, underscoring successful diversification. The Qualcomm Technology Licensing (QTL) segment reported stable revenues of $5.58 billion for the fiscal year.

From a profitability standpoint, the QCT segment's EBT (Earnings Before Taxes) as a percentage of revenues improved by one point to 30% for fiscal 2025, reflecting operational efficiency. The QTL segment maintained a strong EBT margin of 72%. While the company reported a GAAP net loss of $3.12 billion for Q4 FY25 and a 45% decrease in full-year GAAP net income to $5.54 billion, this was largely attributable to a non-cash $5.7 billion charge in Q4. This charge was incurred to establish a valuation allowance against U.S. federal deferred tax assets due to new U.S. tax legislation, a one-time item excluded from the company's Non-GAAP results.

CEO Cristiano Amon emphasized the strength of Qualcomm's business momentum, highlighting record QCT revenues and the successful execution towards their 2024 Investor Day targets. Strategic initiatives such as the availability of their automated driving stack and expansion into high-growth areas like data centers and advanced robotics were key themes. These efforts demonstrate Qualcomm's commitment to extending its technology leadership beyond traditional mobile markets and capturing new opportunities in the intelligent computing everywhere paradigm.

Looking forward, Qualcomm provided an optimistic outlook for Q1 fiscal 2026, projecting total revenues between $11.8 billion and $12.6 billion. This guidance includes QCT revenues of $10.3 billion to $10.9 billion and QTL revenues of $1.4 billion to $1.6 billion. Non-GAAP diluted EPS for the upcoming quarter is expected to be in the range of $3.30 to $3.50. The company also anticipates its effective tax rate to generally remain in the 13% to 14% range in future periods, with lower cash tax payments, following the enactment of the One Big Beautiful Bill Act.

Key Highlights

• Fiscal 2025 Non-GAAP Revenues: $44.14 billion, up 13% YoY.
• Fiscal 2025 Non-GAAP EPS: $12.03, up 18% YoY.
• Record QCT fiscal year revenues achieved.
• Total QCT Non-Apple Fiscal Year Revenues Grew 18% Year-Over-Year.
• Combined QCT Automotive and IoT Fiscal Year Revenues Grew 27% Year-Over-Year.
• Q1 FY26 Non-GAAP EPS guidance of $3.30 - $3.50.
• Non-cash $5.7 billion GAAP charge in Q4 FY25 due to new U.S. tax legislation.

Financial Metrics

eps

12.03

YoY: 18%

revenue

44.14 billion

YoY: 13%

guidance

net income

13.3 billion

YoY: 15%

Stock Performance (90 Days)

Data through Dec 30, 2025

Layoff Events

Earnings Calls

Positive Signals

• Strong Non-GAAP financial performance with double-digit revenue and EPS growth.
• Successful diversification strategy evidenced by robust Automotive and IoT segment growth.
• Record QCT revenues, particularly strong growth in non-Apple segments.
• Positive Q1 FY26 guidance indicating continued momentum.
• Strategic expansion into new high-growth markets like data centers and advanced robotics.

Risks & Concerns

— Dependence on a small number of customers and licensees, particularly from their sale of premium-tier handset devices.
— Business concentration in China, exacerbated by U.S./China trade and national security tensions.
— Efforts by some OEMs to avoid paying fair and reasonable royalties for the use of intellectual property.
— Competition in an environment of rapid technological change and ability to adapt effectively.
— The cyclical nature of the semiconductor industry and potential for declines in global economic conditions.