01—Abstract
Summary
Summary of the 10-Q filed April 30, 2025. Cited figures are marked; the original filing is the authoritative source.
QUALCOMM INC/DE (QCOM) reported strong financial results for the quarter and six months ended March 30, 2025.
Total revenues grew 17% year-over-year to $10.98 billiona for the quarter and 17% to $22.65 billion for the first six months. Net income also saw significant increases, up 21% to $2.81 billion for the quarter and 18% to $5.99 billion for the six-month period. This growth was primarily driven by a substantial increase in Equipment and Services revenue, particularly within the QCT segment, which saw a 18% jump in quarterly revenue due to higher handset, automotive, and IoT sales.
The company also highlighted its ongoing commitment to returning capital to shareholders, increasing its quarterly dividend and continuing its stock repurchase program. Despite a strong performance, the company faces ongoing risks, including increasing competition, customer vertical integration, and geopolitical tensions, notably concerning its significant business in China. The report also details progress in resolving legal matters, including the ParkerVision and Arm litigation, with recent favorable rulings or developments.
Looking ahead, QUALCOMM anticipates continued growth driven by the expansion of 5G technology into automotive and IoT sectors. However, the company acknowledges potential headwinds from evolving global trade policies, the cyclical nature of the semiconductor industry, and the strategic shift of key customers, such as Apple, towards internal modem development. The company maintains a strong liquidity position with substantial cash, cash equivalents, and marketable securities, and expects its resources to meet its capital requirements for at least the next 12 months.
02—Key points
Key Highlights
- Total revenues increased by 17% year-over-year to $10.98 billion for the fiscal second quarter of 2025.
- Net income grew by 21% year-over-year to $2.81 billion for the fiscal second quarter of 2025.
- QCT segment revenue increased by 18% year-over-year, driven by strong performance in handsets, automotive, and IoT.
- The company announced an increase in its quarterly dividend per share from $0.85 to $0.89.
- QUALCOMM continues its significant stock repurchase program, with $12.5 billion remaining authorized.
- The company is managing ongoing legal proceedings, with recent developments in the Arm and ParkerVision cases.
- Despite revenue growth, the company faces risks including customer vertical integration, global trade tensions, and semiconductor industry cyclicality.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Qualcomm Inc kept $0.26.
- Revenue$10.98B100.0%
- Cost of revenue−$4.94B45.0%
- Gross profit$6.04B55.0%
- Operating costs−$2.92B26.6%
- Operating income$3.12B28.4%
- Interest, other & tax−$308.0M2.8%
- Net income$2.81B25.6%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed April 30, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $10.98B$9.39B | +16.9% |
| Cost of Revenue | $4.94B$4.11B | +20.2% |
| Gross Profit | $6.04B$5.28B | +14.4% |
| R&D Expenses | $2.22B$2.24B | −0.9% |
| SG&A Expenses | $706.00M$707.00M | −0.1% |
| Operating Expenses | $7.86B$7.05B | +11.5% |
| Operating Income | $3.12B$2.34B | +33.3% |
| Interest Expense | $163.00M$172.00M | −5.2% |
| Net Income | $2.81B$2.33B | +20.9% |
| EPS (Basic) | $2.55$2.08 | +22.6% |
| EPS (Diluted) | $2.52$2.06 | +22.3% |
| Shares Outstanding (Basic) | 1.10B1.12B | −1.2% |
| Shares Outstanding (Diluted) | 1.11B1.13B | −1.3% |
05—Questions
Frequently Asked Questions
What drove the revenue growth in the second quarter of fiscal 2025?
Revenue growth in the second quarter of fiscal 2025 was primarily driven by a $1.4 billion increase in equipment and services revenues from the QCT segment, fueled by higher handset, automotive, and IoT sales. Additionally, a $143 million licensing revenue contribution from a recent settlement of a licensing dispute also contributed to the overall revenue increase.
What are the key risks highlighted by QUALCOMM for the upcoming periods?
Key risks highlighted include increased competition, potential impacts from global trade policies and U.S./China tensions, the cyclical nature of the semiconductor industry, and the risk of customers vertically integrating and developing their own integrated circuit products, such as Apple's increasing use of its own modem products. The company also notes the ongoing uncertainties in legal and regulatory proceedings.
How is QUALCOMM managing its capital return to shareholders?
QUALCOMM is actively returning capital to shareholders through its stock repurchase program and dividends. The company announced an increase in its quarterly dividend per share from $0.85 to $0.89, effective after March 27, 2025. Additionally, the company has a substantial stock repurchase program, with $12.5 billion remaining authorized for repurchases as of March 30, 2025.
What is the status of the Arm Ltd. litigation?
In the Arm Ltd. v. QUALCOMM Incorporated case, a jury found that Qualcomm did not breach the Nuvia ALA and that Qualcomm CPUs incorporating Nuvia designs are licensed under the Qualcomm ALA. However, the jury could not reach a verdict on whether Nuvia breached the Nuvia ALA. Both parties have filed post-trial motions. QUALCOMM also filed its own complaint against Arm for breach of the Qualcomm ALA. The company intends to vigorously defend itself in these matters.
06—Continue