10-QPeriod: Q3 FY2025

QUALCOMM INC/DE Quarterly Report for Q3 Ended Jun 29, 2025

Filed July 30, 2025For Securities:QCOM

Summary

Qualcomm Inc./DE (QCOM) reported strong revenue and profit growth for the third quarter and first nine months of fiscal year 2025. Total revenues reached $10.4 billion for the quarter, a 10% increase year-over-year, and $33.0 billion for the nine-month period, up 15%. Net income saw a substantial rise of 25% year-over-year to $2.7 billion for the quarter, and the nine-month net income grew to $8.7 billion. This performance was driven by robust growth in the QCT segment, particularly in handsets, automotive, and IoT, which saw revenues increase by 11% and 39% respectively for the quarter and nine-month period. The QTL segment also contributed with a 4% revenue increase in the quarter. The company announced a pending acquisition of Alphawave IP Group plc for approximately $2.4 billion to bolster its data center expansion, and continues to execute on its capital return program with significant share repurchases and dividends.

Financial Highlights

48 data points
Beta

Revenue

$10.37B

55.6% Gross Margin

Net Income

$2.67B

25.7% Net Margin

EPS (Diluted)

$2.43

Total Assets

$54.86B

Cash & Equivalents

$7.77B

Free Cash Flow

$2.88B

Financial Statements
Beta
Revenue$10.37B
Cost of Revenue$4.61B
Gross Profit$5.76B
R&D Expenses$2.23B
SG&A Expenses$771.00M
Operating Expenses$7.60B
Operating Income$2.76B
Interest Expense$168.00M
Net Income$2.67B
EPS (Basic)$2.44
EPS (Diluted)$2.43
Shares Outstanding (Basic)1.09B
Shares Outstanding (Diluted)1.10B

Key Highlights

  • 1Total revenues increased 10% year-over-year to $10.4 billion for Q3 FY2025 and grew 15% to $33.0 billion for the first nine months of FY2025.
  • 2Net income surged 25% year-over-year to $2.7 billion for Q3 FY2025, with nine-month net income reaching $8.7 billion.
  • 3The QCT segment showed strong performance with revenues up 11% year-over-year in Q3 FY2025, driven by handsets, automotive, and IoT growth.
  • 4The QTL segment revenue increased by 4% year-over-year in Q3 FY2025, attributed to higher estimated sales of 3G/4G/5G-based multimode products.
  • 5Qualcomm announced a pending acquisition of Alphawave IP Group plc for approximately $2.4 billion to accelerate its expansion into data centers.
  • 6The company repurchased $6.3 billion of common stock in the first nine months of FY2025, reflecting continued commitment to capital return.
  • 7The recent US tax reform legislation (OBBB) is expected to favorably impact cash flows from operations starting in fiscal year 2026 due to the permanent reinstatement of deducting R&D expenditures.

Frequently Asked Questions

The primary driver of Qualcomm's revenue growth was the strong performance in its QCT (Qualcomm CDMA Technologies) segment, which saw an 11% year-over-year increase. This growth was particularly fueled by higher revenues in handsets, IoT, and automotive sectors.

The acquisition of Alphawave IP Group plc for approximately $2.4 billion is expected to accelerate Qualcomm's expansion into the data center market by providing key assets and technologies. The deal is anticipated to close in the first calendar quarter of 2026.

The One Big Beautiful Bill Act (OBBB) is expected to have a favorable effect on Qualcomm's cash flows from operations starting in fiscal year 2026, due to the permanent reinstatement of deducting domestic research and development expenditures as incurred. However, it is also expected to adversely affect the total provision for income taxes and results of operations by reducing the benefit from deferred tax assets.

Qualcomm continues to execute its capital return program through significant stock repurchases and cash dividends. In the first nine months of FY2025, the company repurchased $6.3 billion of its common stock and paid substantial cash dividends.