Qualcomm(US:QCOM) ZACKS·2025-12-05 17:36Core Insights - Qualcomm reported strong fourth-quarter fiscal 2025 results, with adjusted earnings and revenues exceeding estimates, driven by demand in IoT and automotive sectors [2][4] - Despite revenue growth, GAAP net income showed a loss due to a non-cash charge related to tax legislation changes [3][4] Financial Performance - GAAP 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 [3] - Non-GAAP net income for the quarter was $3.26 billion or $3.00 per share, beating estimates by 12 cents [4] - Total revenues for the fourth quarter were $11.27 billion, up from $10.24 billion year-over-year, surpassing the consensus mark of $10.77 billion [5] Segment Performance - Revenues from Qualcomm CDMA Technologies (QCT) were $9.82 billion, up from $8.68 billion a year ago, driven by automotive platform strength and demand in handsets [6] - Automotive revenues rose 17% to a record high of $1.05 billion, while handset revenues increased 14% to $6.96 billion [7] - Qualcomm Technology Licensing (QTL) revenues totaled $1.41 billion, down 7% year-over-year [8] 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 [9] - As of September 28, 2025, the company had $5.52 billion in cash and cash equivalents and $14.81 billion in long-term debt [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] - QCT revenues are anticipated to be between $10.3 billion and $10.9 billion, with record handset revenues and relatively flat automotive revenues [11] Market Position - Estimates for Qualcomm have trended upward over the past month, indicating positive market sentiment [12][14] - The stock has a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [14]