Qualcomm Beats Q4 Earnings Estimates on Solid Revenue Growth

Core Insights - Qualcomm Incorporated (QCOM) reported strong fourth-quarter fiscal 2025 results, with adjusted earnings and revenues exceeding Zacks Consensus Estimates, driven by healthy demand in IoT and automotive sectors [1] Financial Performance - On a GAAP basis, net loss for the September quarter was $3.12 billion or a loss of $2.89 per share, compared to a net income of $2.92 billion or $2.59 per share in the prior-year quarter, primarily due to a non-cash charge of $5.7 billion from new tax legislation [2] - Non-GAAP net income for the reported quarter was $3.26 billion or $3.00 per share, compared to $3.04 billion or $2.69 per share in the year-ago quarter, beating the Zacks Consensus Estimate by 12 cents [3] - For fiscal 2025, GAAP net income decreased to $5.54 billion or $5.01 per share from $10.14 billion or $8.97 per share in fiscal 2024, while non-GAAP earnings increased to $13.3 billion or $12.03 per share from $11.54 billion or $10.22 per share in fiscal 2024 [3] Revenue Growth - Total revenues in the fiscal fourth quarter were $11.27 billion, up from $10.24 billion in the year-ago quarter, surpassing the consensus mark of $10.77 billion [4] - Non-GAAP revenues for fiscal 2025 increased 13% year over year to $44.14 billion, driven by strong IoT and automotive revenues [4] Segment Performance - Quarterly revenues from Qualcomm CDMA Technologies (QCT) were $9.82 billion, up from $8.68 billion a year ago, supported by strength in automotive, handsets, and IoT [5] - Automotive revenues rose 17% to a record high of $1.05 billion, driven by increased content in new vehicle launches with the Snapdragon Digital Chassis platform [6] - Handset revenues increased 14% to $6.96 billion, while IoT revenues grew 7% to $1.81 billion, reflecting solid demand for the Snapdragon AR1 chipset [6] - Qualcomm Technology Licensing (QTL) revenues totaled $1.41 billion, down 7% year over year, with EBT margin declining to 72% from 74% [7] Cash Flow and Liquidity - Qualcomm generated $14.01 billion of net cash from operating activities in fiscal 2025, compared to $12.2 billion a year ago [10] - As of September 28, 2025, the company had $5.52 billion in cash and cash equivalents and $14.81 billion of long-term debt [10] - The company repurchased 16 million shares during the quarter for $2.44 billion [10] Guidance - For the first quarter of fiscal 2026, Qualcomm expects GAAP revenues of $11.8-$12.6 billion and non-GAAP earnings of $3.30-$3.50 per share [11] - Revenues from QTL are expected to be between $1.4 billion and $1.6 billion, while QCT revenues are anticipated to be between $10.3 billion and $10.9 billion [11]