QUALCOMM INC/DEQCOM
QUALCOMM INC/DE Financial Overview 2021–2025
Qualcomm reported a headline-grabbing 45% drop in net income to $5.5 billion in FY2025, but this optical decline masks record operational demand. While a significant $5.7 billion tax valuation allowance heavily impacted the bottom line, the company successfully navigated the post-pandemic inventory cycle to achieve a new high-water mark in sales. Revenue expanded from $33.6 billion in FY2021 to a record $44.3 billion in FY2025, validating the strategic pivot beyond smartphones into high-growth automotive and industrial applications.
The semiconductor business (QCT) remains the growth engine, surging 16% in FY2025 while delivering a robust 30% earnings-before-tax margin. This operational health allowed management to return significant cash to shareholders, executing $8.8 billion in stock buybacks and paying $3.8 billion in dividends throughout the fiscal year. Innovation spending also remained aggressive, with $9.0 billion allocated to R&D to support on-device AI and diversification efforts. At the end of FY2025, shares traded at $169.20, implying a price-to-earnings ratio of 33.8x as the market looked past the statutory tax volatility to focus on the company’s $181.7 billion market capitalization and stabilized growth trajectory.
Recent Developments (Q4 2025 and Q1 2026)
Qualcomm entered fiscal 2026 with continued top-line momentum, reporting $12.25 billion in first-quarter revenue, a 5% increase year-over-year. While sales grew, net income contracted 6% to $3.0 billion as higher R&D costs and tighter gross margins offset gains. To solidify its diversification beyond handsets, the company completed the $2.3 billion acquisition of Alphawave IP Group during the quarter, significantly bolstering its data center footprint. Leadership also evolved with the appointment of machine learning expert Dr. Jeremy Kolter to the Board in late Q4 2025, reinforcing the strategic focus on artificial intelligence.
Bulls highlight the sustained shareholder returns, including $2.65 billion in Q1 2026 buybacks, while bears cite management’s warning regarding memory supply constraints and customer vertical integration. At 29.7x trailing earnings as of February 2026, the valuation demands successful execution in these new growth verticals to justify the premium over historical averages.
What to watch: Integration of Alphawave IP assets; margin impact from memory supply shortages.
Rev
$44.28B
FY2025
NI
$5.54B
FY2025
EPS
$5.05
FY2025
OCF
$14.01B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
QUALCOMM INC/DE 8-K Report, Financial Results (Feb 4, 2026)
Qualcomm Incorporated (QCOM) has filed an 8-K report on February 3, 2026, to announce its financial results for the first quarter of fiscal year 2026. The report primarily incorporates a press release issued on February 4, 2026, which details the company's performance. Investors should note that this release includes both GAAP (Generally Accepted Accounting Principles) and Non-GAAP financial measures, with a reconciliation provided for the Non-GAAP figures. Management believes these Non-GAAP measures offer additional valuable insights into the company's financial condition and operational results.
QUALCOMM INC/DE 8-K Report, Executive Changes (Jan 16, 2026)
Qualcomm Incorporated (QCOM) has announced a change to its Board of Directors. Christopher D. Young, a current board member, has informed the company of his decision to step down from the Board. This departure is effective as of the Company's 2026 Annual Meeting of Stockholders. Mr. Young's resignation is attributed to the significant time commitment required by his new executive role as Chief Executive Officer and a board member at Vertex, Inc. While this represents a change in board composition, it does not appear to be related to any operational or financial issues within Qualcomm itself. Investors should monitor the company's future announcements regarding the appointment of new directors to fill the vacancy.
QUALCOMM INC/DE 8-K Report, Executive Changes (Dec 16, 2025)
Qualcomm Inc. (QCOM) has disclosed that Kornelis (Neil) Smit will be retiring from its Board of Directors, effective at the company's 2026 Annual Meeting of Stockholders. Mr. Smit has served on the board for approximately eight years. While the departure of a board member is a routine event, investors may want to monitor the company's strategy for board refreshment and succession planning to ensure continued strong governance and oversight. The timing of this announcement, well in advance of the annual meeting, allows for a thoughtful transition and identification of a suitable replacement. This filing does not indicate any immediate operational or financial changes within Qualcomm. However, the composition of the board is a key factor for long-term strategic direction and corporate governance. Investors should look for future communications regarding the nomination and election of new directors to assess any potential shifts in the board's expertise or perspective. The company's commitment to a smooth transition for Mr. Smit's departure will be a point of interest.
QUALCOMM INC/DE 8-K Report, Bylaw Amendment (Dec 10, 2025)
Qualcomm Incorporated (QCOM) has filed an 8-K report detailing amendments to its corporate governance structure. Effective December 9, 2025, the Company's Board of Directors approved Amended and Restated Bylaws that grant stockholders holding at least 25% of net long ownership the ability to call a special meeting. This change empowers a significant minority shareholder group to convene special meetings, provided certain conditions regarding continuous ownership for at least one year and adherence to informational and timing requirements are met. This update to the bylaws is a significant governance change that could impact shareholder engagement and activism. Investors should note that while this provision lowers the threshold for calling special meetings compared to some other companies, it still requires a substantial ownership stake and adherence to procedural rules. The intent is to balance enhanced shareholder rights with operational efficiency, preventing undue disruption from multiple meetings.
QUALCOMM INC/DE 8-K Report, Financial Results (Nov 5, 2025)
QUALCOMM Incorporated (QCOM) has filed a Current Report on Form 8-K, primarily to announce its financial results for the fourth quarter and full fiscal year ended September 28, 2025. The report's core information is contained within a press release furnished as Exhibit 99.1, which details the company's performance and financial condition for the reported periods. Investors should refer to this press release for specific financial figures and management commentary. It is important for investors to note that the press release includes Non-GAAP financial measures. The filing explicitly states that these measures are presented alongside their most directly comparable GAAP counterparts, with reconciliations provided. Management believes these Non-GAAP figures offer useful insights, but they should be considered supplementary to, and not a replacement for, GAAP-based financial reporting. The 8-K itself does not contain detailed financial statements but directs readers to the attached press release for operational and financial condition details.
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