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| 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.