10-KPeriod: FY2025

QUALCOMM INC/DE Annual Report, Year Ended Sep 28, 2025

Filed November 5, 2025For Securities:QCOM

Summary

Qualcomm Inc./DE (QCOM) reported robust revenue growth for the fiscal year ending September 27, 2025, with revenues reaching $44.3 billion, a 14% increase year-over-year. This growth was primarily driven by a significant 16% increase in the QCT (Qualcomm CDMA Technologies) segment, fueled by higher revenues in handsets, IoT, and automotive sectors. The company's QCT segment saw a 30% Earnings Before Tax (EBT) margin, indicating strong operational performance in its semiconductor business. Despite strong revenue performance, net income saw a substantial decrease of 45% to $5.5 billion. This was largely due to a significant charge of $5.7 billion recorded in the fourth quarter of fiscal year 2025 for a valuation allowance against federal deferred tax assets, a consequence of recent U.S. tax reform legislation (OBBB). The company's QTL (Qualcomm Technology Licensing) segment remained relatively flat in revenue. Qualcomm continues to strategically invest in growth and diversification initiatives, particularly in AI and high-performance computing, while also managing significant risks related to customer concentration, global trade tensions, and competitive pressures within the semiconductor industry.

Financial Highlights

51 data points
Beta

Revenue

$44.28B

55.4% Gross Margin

Net Income

$5.54B

12.5% Net Margin

EPS (Diluted)

$5.01

Total Assets

$50.14B

Cash & Equivalents

$7.84B

Free Cash Flow

$14.01B

Financial Statements
Beta
Revenue$44.28B
Cost of Revenue$19.74B
Gross Profit$24.55B
R&D Expenses$9.04B
SG&A Expenses$3.11B
Operating Expenses$31.93B
Operating Income$12.36B
Interest Expense$664.00M
Net Income$5.54B
EPS (Basic)$5.05
EPS (Diluted)$5.01
Shares Outstanding (Basic)1.10B
Shares Outstanding (Diluted)1.10B

Key Highlights

  • 1Record annual revenue of $44.3 billion, up 14% year-over-year, driven by strong performance in handsets, IoT, and automotive segments.
  • 2QCT segment revenues grew 16%, with handset revenues increasing primarily due to higher average selling prices and favorable mix for premium-tier Snapdragon platforms.
  • 3Net income decreased significantly by 45% to $5.5 billion, primarily due to a $5.7 billion valuation allowance charge related to U.S. tax reform legislation.
  • 4QTL segment revenue remained stable, with new long-term license agreements secured with key Chinese OEMs and Transsion.
  • 5The company continues to invest heavily in R&D ($9.0 billion), focusing on on-device AI, high-performance computing, and diversification into automotive and IoT.
  • 6Qualcomm repurchased $8.8 billion of its common stock and paid $3.8 billion in dividends, demonstrating a commitment to returning capital to shareholders.
  • 7Significant risks remain, including customer concentration (Apple, Samsung, Xiaomi), ongoing U.S.-China trade tensions, intense competition, and potential supply chain disruptions.

Frequently Asked Questions

Qualcomm's revenue growth in fiscal year 2025 was primarily driven by its QCT segment, which saw a 16% increase. This was fueled by higher handset revenues, attributed to increased average selling prices and a favorable mix towards premium-tier Snapdragon platforms, along with higher shipments from certain major OEMs. Additionally, the IoT and automotive segments also contributed to the growth with increased shipments and new vehicle launches respectively.

The substantial decrease in net income for fiscal year 2025, despite revenue growth, was primarily due to a one-time charge of $5.7 billion. This charge was recorded to establish a valuation allowance against federal deferred tax assets, a consequence of U.S. tax reform legislation (OBBB) enacted in July 2025, which introduced changes like the Corporate Alternative Minimum Tax (CAMT).

Qualcomm faces several key risks, including significant revenue concentration from a few major customers like Apple, Samsung, and Xiaomi. Geopolitical tensions, particularly between the U.S. and China, pose a considerable risk due to the company's substantial business in China. Intense competition within the semiconductor industry, including potential vertical integration by customers, and ongoing supply chain vulnerabilities are also significant concerns. The company also faces potential challenges in renewing its licensing agreements and defending its intellectual property.

Qualcomm is strategically investing in future growth through significant R&D expenditures, focusing on foundational technologies like on-device Artificial Intelligence (AI), high-performance, low-power computing, and advanced wireless connectivity. The company is actively diversifying its business beyond mobile handsets into high-growth areas such as automotive and the Internet of Things (IoT). They are also making strategic investments and acquisitions, such as the pending acquisition of Alphawave IP Group plc, to expand their technology portfolio and market reach.