Core Viewpoint - Qualcomm's FY2025 performance and FY26Q1 guidance exceeded expectations, leading to a 3.98% increase in stock price after the announcement [4]. Group 1: FY2025 Performance - Qualcomm achieved Non-GAAP revenue of $44.141 billion for FY2025, surpassing Bloomberg's consensus estimate of $43.690 billion, representing a year-on-year increase of 13% [4]. - The QCT business generated revenue of $38.367 billion, up 16% year-on-year, while the QTL business revenue remained flat at $5.582 billion [4]. - Due to the impact of the Inflation Reduction Act, Qualcomm will recognize $5.7 billion in tax expenses in FY25Q4, resulting in a GAAP net profit of $5.541 billion compared to a Non-GAAP net profit of $13.298 billion [4]. - The Non-GAAP EPS for FY2025 was $12.03, exceeding the consensus estimate of $11.92 [4]. Group 2: FY26Q1 Guidance - Qualcomm's guidance for FY26Q1 indicates Non-GAAP revenue of $11.8 to $12.6 billion, above the consensus estimate of $11.592 billion [4]. - The company expects Non-GAAP diluted EPS to be between $3.30 and $3.50, compared to the consensus estimate of $3.255 [4]. Group 3: QCT Mobile Business - The mobile business revenue reached $27.793 billion in FY2025, reflecting a 12% year-on-year increase, driven by higher demand for high-end Snapdragon chips from Android OEMs [5]. - Qualcomm launched the new Snapdragon 8 Elite Gen5 SoC in September 2025, which will be featured in flagship models from brands like Xiaomi, OnePlus, and iQOO [5]. - The company anticipates maintaining a high supply share of 75% for Samsung's mobile chips [5]. Group 4: QCT IoT Business - The IoT business generated revenue of $6.617 billion in FY2025, marking a 22% year-on-year increase, primarily due to higher shipments in consumer, industrial, and edge network products [6]. - Qualcomm completed the acquisition of Arduino, enhancing its competitive edge in the edge AI sector with a community of over 30 million users [6]. - The company expects over 150 high-end PC models to feature Snapdragon SoCs by 2026 [6]. Group 5: QCT Automotive Business - The automotive business revenue was $3.957 billion in FY2025, a 36% year-on-year increase, driven by higher shipments of vehicles equipped with Qualcomm's smart cockpit technology [8]. - Qualcomm is collaborating with BMW to launch the Snapdragon RidePilot system for L2+ assisted driving, currently validated in over 60 countries and set to expand to 100 countries by 2026 [8].

Investment Rating - The report maintains a "Buy" rating for Qualcomm (QCOM.O) [6] Core Insights - Qualcomm's FY2025 performance exceeded expectations, driven by increased demand for high-end mobile SoCs and robust growth in automotive and IoT business segments [1][2][3][4] - The company reported Non-GAAP revenue of $44.141 billion for FY2025, a 13% year-over-year increase, surpassing Bloomberg consensus estimates of $43.690 billion [1] - For FY26Q1, Qualcomm's guidance also exceeded expectations, projecting Non-GAAP revenue between $11.8 billion and $12.6 billion, compared to the consensus estimate of $11.592 billion [1] Summary by Sections QCT Mobile Business - FY2025 mobile business revenue reached $27.793 billion, a 12% increase year-over-year, primarily due to rising demand for high-end Snapdragon chips from Android OEMs [2] - The launch of the Snapdragon 8 Elite Gen5 SoC is expected to enhance Qualcomm's market position, with Samsung's supply share projected to remain high at 75% [2] QCT IoT Business - FY2025 IoT revenue was $6.617 billion, reflecting a 22% year-over-year growth, driven by increased shipments in consumer, industrial, and edge network products [3] - The acquisition of Arduino is expected to strengthen Qualcomm's competitive edge in the edge AI sector [3] - New SoCs for high-end PCs and strong demand for XR and AI glasses are anticipated to contribute to future growth [3] QCT Automotive Business - FY2025 automotive revenue reached $3.957 billion, a significant 36% increase year-over-year, attributed to higher shipments of vehicles equipped with Qualcomm's smart cockpit technology [4] - The collaboration with BMW on the Snapdragon RidePilot system for L2+ driving assistance is being validated in over 60 countries, with plans for expansion [4] Financial Forecast and Valuation - The report forecasts GAAP net profits of $11.5 billion for FY2026, $12.5 billion for FY2027, and $13 billion for FY2028, reflecting year-over-year growth rates of 108%, 8%, and 4% respectively [4] - Current price corresponds to FY2026-2028 P/E ratios of 17X, 15X, and 15X [4]