01—Abstract
Summary
Summary of the 10-Q filed July 30, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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 billionb to bolster its data center expansion, and continues to execute on its capital return program with significant share repurchases and dividends.
02—Key points
Key Highlights
- Total 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.
- Net income surged 25% year-over-year to $2.7 billion for Q3 FY2025, with nine-month net income reaching $8.7 billion.
- The QCT segment showed strong performance with revenues up 11% year-over-year in Q3 FY2025, driven by handsets, automotive, and IoT growth.
- The QTL segment revenue increased by 4% year-over-year in Q3 FY2025, attributed to higher estimated sales of 3G/4G/5G-based multimode products.
- Qualcomm announced a pending acquisition of Alphawave IP Group plc for approximately $2.4 billion to accelerate its expansion into data centers.
- The company repurchased $6.3 billion of common stock in the first nine months of FY2025, reflecting continued commitment to capital return.
- The 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.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Qualcomm Inc kept $0.26.
- Revenue$10.37B100.0%
- Cost of revenue−$4.61B44.4%
- Gross profit$5.76B55.6%
- Operating costs−$3.00B28.9%
- Operating income$2.76B26.6%
- Interest, other & tax−$96.0M0.9%
- Net income$2.67B25.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed July 30, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $10.37B$9.39B | +10.3% |
| Cost of Revenue | $4.61B$4.17B | +10.3% |
| Gross Profit | $5.76B$5.22B | +10.3% |
| R&D Expenses | $2.23B$2.26B | −1.5% |
| SG&A Expenses | $771.00M$664.00M | +16.1% |
| Operating Expenses | $7.60B$7.17B | +6.0% |
| Operating Income | $2.76B$2.22B | +24.4% |
| Interest Expense | $168.00M$168.00M | 0.0% |
| Net Income | $2.67B$2.13B | +25.2% |
| EPS (Basic) | $2.44$1.91 | +27.7% |
| EPS (Diluted) | $2.43$1.88 | +29.3% |
| Shares Outstanding (Basic) | 1.09B1.12B | −2.2% |
| Shares Outstanding (Diluted) | 1.10B1.13B | −3.1% |
05—Questions
Frequently Asked Questions
What was the primary driver of Qualcomm's revenue growth in Q3 FY2025?
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.
What are the implications of the pending Alphawave acquisition?
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.
How is the recent US tax reform legislation expected to impact Qualcomm?
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.
What is Qualcomm's strategy for returning capital to shareholders?
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.
06—Continue