Core Insights - Qualcomm Inc delivered a strong quarter with a 10% year-over-year revenue increase, surpassing Wall Street's forecast of 5.1% [3] - The growth was primarily driven by the Qualcomm CDMA Technology segment, which rose 13.2%, exceeding the Street's estimate of 7.7% [3] - The company is experiencing strong demand in premium Android devices and emerging AI technologies, while also expanding its footprint in automotive, IoT, and edge AI [2][3] Financial Performance - Revenue for the quarter reached $9.82 billion, with QCT revenue up 13% year-over-year [10] - Adjusted EPS climbed 18% to $12.03 for fiscal 2025, both metrics exceeding forecasts [10] - Operating margins were reported at 33.8%, slightly below expectations, but strong top-line performance led to a 12-cent earnings beat [4] Market Dynamics - Qualcomm's stock has increased approximately 17% year-to-date, although it lags behind the Nasdaq's 22% gain [5] - The company benefits from solid handset sales in China, driven by local holidays and high-end Android device launches [5] - However, the smartphone semiconductor segment remains a mature industry, accounting for about 71% of QCT's total revenue [5] Customer Concentration and Risks - Chinese vendors represent nearly 68% of handset-related QCT revenue, with potential risks from self-developed chips by competitors like Xiaomi [6] - Samsung's contribution is expected to decline from 100% to 75% by fiscal Q2 2026, and the Apple contract is set to expire within a year [6] Growth Opportunities - The automotive and IoT sectors are projected to maintain steady growth, supported by rising demand for digital chassis and smart glasses [7] - Qualcomm's data center AI inference products are seen as a key step toward capturing future AI opportunities, positioning the company to lead in AI at the network edge [9] - The automotive business is scaling rapidly, with a 36% annual increase driven by the Snapdragon Digital Chassis platform [11] Future Outlook - Analysts project first-quarter revenue of $12.2 billion and adjusted EPS of $3.45, indicating continued strength despite seasonal IoT softness [12][13] - Qualcomm's diversification into automotive, IoT, and edge AI is expected to support long-term growth as the company transitions beyond smartphones [12]

Financial Data and Key Metrics Changes - In Fiscal Q4, the company reported revenues of $11.3 billion and non-GAAP earnings per share of $3, both exceeding the high end of guidance [4] - Fiscal 2025 non-GAAP revenues reached $44 billion, up 13% year over year, with record QCT annual revenues of $38.4 billion, reflecting a 16% year-over-year growth [4][16] - The company generated record free cash flow of $12.8 billion and returned nearly 100% to stockholders through repurchases and dividends [16] Business Line Data and Key Metrics Changes - QCT revenues were $9.8 billion, up 9% sequentially, driven by strong demand for Snapdragon-powered premium-tier Android handsets and automotive solutions [4] - Automotive revenue surpassed $1 billion for the first time in a quarter, achieving 17% year-over-year growth [15] - IoT revenues grew 7% year-over-year to $1.8 billion, driven by strength in industrial and networking products [15] Market Data and Key Metrics Changes - The company noted strong end customer demand for Snapdragon-powered devices across various markets, including automotive and IoT [4][5] - The Snapdragon Insiders community grew to over 20 million members worldwide, indicating increased brand visibility and engagement [6] Company Strategy and Development Direction - The company is focused on expanding its presence in the data center market, with plans to provide updates on its roadmap and performance in early 2026 [12][26] - The company aims to achieve its long-term revenue commitments for Fiscal 2029, targeting $8 billion in automotive and $14 billion in IoT revenues [18][19] - The Snapdragon 8 Elite Gen 5 mobile platform was introduced, showcasing the company's commitment to innovation in mobile processors [5][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to lead the expansion of AI to the edge and develop power-efficient cloud inferencing solutions [13] - The company anticipates strong business momentum continuing into the next fiscal year, driven by new flagship Android handset launches [38] Other Important Information - The enactment of the One Big Beautiful tax bill is expected to lower cash tax payments and maintain the non-GAAP tax rate in the 13%-14% range [15] - The company completed the acquisition of Arduino, enhancing its IoT development ecosystem [10] Q&A Session Summary Question: Insights on the data center business and AI200/250 specs - Management highlighted the competitive, power-efficient CPU as a strategic asset for data centers and expressed excitement about the upcoming AI200 and AI250 products [25][26] Question: Handset market visibility and share expectations - Management confirmed a strong relationship with Samsung, maintaining a baseline assumption of 75% share for new Galaxy models, with expectations of continued growth in the premium tier [30][31] Question: Revenue implications for the Humane engagement - Management indicated that data center products are expected to start leading to a revenue ramp beginning in fiscal 2027, potentially pulling forward due to the Humane engagement [34] Question: Concerns about handset market share changes - Management noted strong business momentum and did not provide guidance beyond the first quarter, emphasizing the positive consumer reaction to new device launches [38] Question: Update on negotiations with Huawei for a license - Management stated that discussions with Huawei are ongoing, with no substantive updates available at this time [42] Question: Drivers of handset revenue growth - Management attributed handset revenue growth to a mix shift towards premium devices and increased content per device, indicating a long-term trend [45][52]

Financial Data and Key Metrics Changes - In Fiscal Q4, the company reported revenues of $11.3 billion and Non-GAAP earnings per share of $3, both exceeding the high end of guidance [4] - Fiscal 2025 Non-GAAP revenues reached $44 billion, up 13% year-over-year, with record QCT annual revenues of $38.4 billion, reflecting a 16% year-over-year increase [4][16] - The company generated record free cash flow of $12.8 billion and returned nearly 100% to stockholders through repurchases and dividends [16] Business Line Data and Key Metrics Changes - QCT revenues were $9.8 billion, up 9% sequentially, driven by strong demand for Snapdragon-powered premium-tier Android handsets and automotive solutions [4][14] - QCT handset revenues increased by 14% year-over-year to $7 billion, reflecting increased demand for premium Android handsets powered by the Snapdragon 8 Elite Gen 5 platform [14] - QCT IoT revenues grew 7% year-over-year to $1.8 billion, driven by strength across industrial and networking products [15] - Automotive revenues surpassed $1 billion for the first time in a quarter, delivering 17% year-over-year growth [15] Market Data and Key Metrics Changes - The company noted strong end customer demand for Snapdragon-powered premium-tier Android handsets and continued traction in automotive and IoT markets [4][5] - The Snapdragon Insiders community has grown to over 20 million members worldwide, indicating increased brand visibility [6] - The company debuted at 39 on the Interbrand Top 100 Global Brands list for 2025, reflecting the strength of the Snapdragon brand [6] Company Strategy and Development Direction - The company is focused on expanding its presence in the data center market, with plans to provide updates on its roadmap and performance in early 2026 [12][34] - The company aims to achieve its $22 billion fiscal 2029 revenue target across automotive and IoT, with significant growth expected in both sectors [18][19] - The company is pursuing opportunities in AI, robotics, and next-generation ADAS, positioning itself as a leader in edge AI solutions [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term revenue commitments and highlighted the strong performance in fiscal 2025 [5][16] - The company anticipates a strong first fiscal quarter with revenues expected in the range of $11.8 billion to $12.6 billion [17] - Management acknowledged potential challenges in the handset market but emphasized the ongoing momentum in the premium tier segment [30][38] Other Important Information - The company completed its acquisition of Arduino, enhancing its IoT development ecosystem [10] - A non-cash charge of $5.7 billion was recorded in Q4 due to the enactment of new tax legislation, impacting GAAP results but excluded from Non-GAAP metrics [15] Q&A Session Summary Question: Insights on the data center business and AI200/250 specs - Management highlighted the competitive, power-efficient CPU as a strategic asset for data centers and expressed excitement about the upcoming AI200 and AI250 products [25][26] Question: Concerns about share with primary Android customer - Management reassured that the Snapdragon premium tier continues to expand, maintaining a strong relationship with Samsung and projecting a baseline share of 75% for future models [30][31] Question: Revenue implications for Humane engagement - Management indicated that data center products are expected to start generating material revenue in fiscal 2027, with the Humane engagement potentially accelerating this timeline [34] Question: Handset market outlook and share changes - Management noted strong business momentum and expected low teens sequential revenue growth in the handset segment, primarily driven by Android premium tier shipments [38][41] Question: Update on negotiations with Huawei for a license - Management stated that discussions with Huawei are ongoing, with no substantive updates available at this time [42] Question: Insights on Snapdragon Android strength in September and December - Management confirmed that the growth in handsets was primarily driven by the premium tier and positive consumer reactions to new device launches [46]

Financial Data and Key Metrics Changes - In Fiscal Q4, Qualcomm reported revenues of $11.3 billion and non-GAAP earnings per share (EPS) of $3, both exceeding the high end of guidance [5][15] - Fiscal 2025 non-GAAP revenues reached $44 billion, up 13% year-over-year, with record QCT annual revenues of $38.4 billion, reflecting a 16% year-over-year increase [5][18] - The company generated record free cash flow of $12.8 billion and returned nearly 100% to stockholders through repurchases and dividends [18] Business Line Data and Key Metrics Changes - QCT revenues were $9.8 billion, up 9% sequentially, driven by strong demand for Snapdragon-powered premium-tier Android handsets and automotive solutions [5][16] - QCT handset revenues increased by 14% year-over-year to $7 billion, reflecting increased demand for premium Android handsets powered by the Snapdragon 8 Elite Gen 5 platform [16] - QCT IoT revenues grew 7% year-over-year to $1.8 billion, driven by strength in industrial and networking products [16] - Automotive revenues surpassed $1 billion for the first time in a quarter, achieving 17% year-over-year growth [16] Market Data and Key Metrics Changes - Qualcomm's Snapdragon ecosystem saw significant engagement, with over 1,100 partners and tech influencers attending the Snapdragon Summit, generating over 547 million social media impressions [7][8] - The company debuted at 39 on the Interbrand Top 100 Global Brands list for 2025, reflecting the strength of Snapdragon [8] Company Strategy and Development Direction - Qualcomm is focused on expanding its presence in the automotive and IoT sectors, with a long-term revenue commitment of $22 billion by Fiscal 2029 [20][21] - The company aims to lead the expansion of AI to the edge and develop power-efficient cloud inferencing solutions [14][20] - Recent acquisitions, including Arduino, are intended to enhance Qualcomm's edge AI development platform [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term revenue targets, citing strong demand for Snapdragon-powered devices and the expansion of the premium tier in the handset market [20][21] - The company anticipates a strong performance in the first fiscal quarter, with revenues expected to range from $11.8 billion to $12.6 billion [19] Other Important Information - A non-cash charge of $5.7 billion was recorded in Q4 due to the enactment of the One Big Beautiful tax bill, impacting GAAP results but excluded from non-GAAP metrics [16] - Qualcomm's strategy includes a disciplined approach to entering the data center market, focusing on competitive, power-efficient CPUs and architectures for inference workloads [26][27] Q&A Session Summary Question: Insights on the data center business and AI200/250 specs - Qualcomm is excited about the data center opportunity, focusing on competitive, power-efficient CPUs and a new architecture dedicated to inference [26][27] Question: Handset market visibility and share expectations - Qualcomm maintains a baseline assumption of 75% share with Samsung, with expectations for continued growth driven by the premium tier [30][32] Question: Revenue implications for the Humane engagement - Data center products are expected to start leading to a revenue ramp beginning in fiscal 2027, with material revenue anticipated earlier due to the Humane engagement [35] Question: Concerns about handset market share changes - Qualcomm is not guiding beyond the first quarter but expects strong business momentum to carry forward into the fiscal year [38] Question: Update on negotiations with Huawei for a license - Discussions with Huawei are ongoing, with no substantive updates available at this time [43] Question: Trends in non-Apple QCT revenue growth - The growth in non-Apple QCT revenue is driven by a mix shift towards premium devices and increased content per device [44][52]

Fourth Quarter and Fiscal 2025 Earnings November 5, 2025 Snapdragon and Qualcomm branded products are products of Qualcomm Technologies, Inc. and/or its subsidiaries. References in this presentation to "Qualcomm" may mean Qualcomm Incorporated, Qualcomm Technologies, Inc., and/or other subsidiaries or business units within the Qualcomm corporate structure, as applicable. In addition to historical information, this document and the conference call that it accompanies contain forward-looking statements that a ...

Core Insights - Omdia's latest research indicates a 6.8% year-on-year growth in total shipments of desktops, laptops, and workstations, reaching 72 million units by Q3 2025, driven primarily by device upgrade demands as Windows 10 service termination approaches [1][4] Shipment Data - In Q3 2025, laptop shipments (including mobile workstations) are expected to grow by 4% to 57.2 million units, while desktop shipments (including desktop workstations) are projected to increase by 17% to 15.2 million units [1][4] - Lenovo leads the global PC market with a shipment of 19.4 million units, a 17% increase year-on-year, followed by HP with 15 million units (11% growth), Dell with 10.1 million units (3% growth), Apple with over 6 million units, and Asus with 5.8 million units (7% growth) [5][6] Upgrade Demand - The demand for PC upgrades remains strong among enterprises and consumers, particularly as the deadline for Windows 10 service termination approaches [4][6] - A survey indicated that only 39% of respondents believe their clients have completed PC upgrades, while 18% plan to continue using Windows 10 post-support termination, indicating a significant need for ongoing support and guidance from Microsoft and its partners [4] Future Outlook - Major industry players are expected to unveil new product roadmaps to stimulate PC purchasing demand, with upcoming releases of advanced PC chipsets from Qualcomm and Intel [6] - The 2026 International Consumer Electronics Show (CES) is anticipated to showcase new and attractive PC products, with a focus on "edge AI" technology [6]

Core Insights - Omdia's latest research indicates that the total shipment of desktops, laptops, and workstations is expected to grow by 6.8% year-on-year, reaching 72 million units by Q3 2025, driven by strong device upgrade demand as Windows 10 support ends [1][4] Shipment Growth - Laptop shipments, including mobile workstations, are projected to increase by 4% to 57.2 million units, while desktop shipments, including desktop workstations, are expected to rise by 17% to 15.2 million units [1][4] Market Dynamics - The end of Windows 10 support has led to heightened demand for PC upgrades among both enterprises and consumers, with a significant portion of users still on Windows 10 or using PCs older than five years [4] - A survey indicated that only 39% of enterprise customers have completed their PC upgrades, while 18% plan to continue using Windows 10 post-support, suggesting ongoing opportunities for Microsoft and its partners to promote transitions [4] Vendor Performance - Lenovo leads the global PC market with a shipment of 19.4 million units, a 17% increase year-on-year, followed by HP with 15 million units (11% growth), and Dell with 10.1 million units (3% growth) [5][6] - Apple and Asus follow with shipments of 6.6 million and 5.8 million units, respectively, with Apple maintaining over 6 million units for five consecutive quarters [6] Future Outlook - Major industry players are expected to unveil new product roadmaps to stimulate PC demand, with Qualcomm and Intel launching upgraded chipsets [6] - The upcoming CES 2026 is anticipated to showcase new and attractive PC products, with a focus on "edge AI" technology [6]

Core Insights - Omdia's latest research indicates that total shipments of desktops, laptops, and workstations are expected to grow by 6.8% year-on-year in Q3 2025, reaching 72 million units, driven by strong device upgrade demand as Windows 10 service termination approaches [1][4] Industry Overview - The demand for PC upgrades remains robust as the deadline for Windows 10 service termination is imminent, with a significant portion of users still on Windows 10 or using PCs older than five years [4][6] - A recent survey revealed that only 39% of B2B clients have completed their PC upgrades to Windows 11, indicating a substantial need for ongoing support and guidance from Microsoft and its partners [6] Company Performance - Lenovo reported a strong performance in Q3 2025, with shipments increasing by 17% year-on-year to 19.4 million units, solidifying its leading position in the global PC market [1][7] - HP ranked second with shipments of 15 million units, reflecting an 11% year-on-year growth, while Dell ranked third with a 3% increase in shipments [7][8] - Apple maintained its position in fourth place, with shipments exceeding 6 million units for the fifth consecutive quarter, and Asus rounded out the top five with a 7% year-on-year growth [7][8] Market Share Data - In Q3 2025, Lenovo held a market share of 26.7%, followed by HP at 20.7%, Dell at 14.0%, Apple at 9.0%, and Asus at 8.0% [8]

Core Insights - The total shipment volume of desktops, laptops, and workstations is projected to grow by 6.8% year-on-year in Q3 2025, reaching 72 million units, driven by the demand for device upgrades as Windows 10 service termination approaches [1][3] - Lenovo has shown strong performance in Q3 2025, with a shipment increase of 17% year-on-year, solidifying its leading position in the global PC market [1][6] Industry Overview - The demand for PC upgrades remains high as the deadline for Windows 10 service termination approaches, with many users still on Windows 10 or using PCs older than five years [3][5] - A survey indicates that only 39% of B2B clients have completed their PC upgrades to Windows 11, suggesting significant work remains for Microsoft and its partners [5] Company Performance - Lenovo's Q3 2025 shipments reached 19.4 million units, capturing a market share of 26.7% [7] - HP ranked second with shipments of 15 million units, reflecting an 11% year-on-year growth, while Dell ranked third with a 3% growth [6][7] - Apple maintained its position with over 6 million units shipped for the fifth consecutive quarter, and Asus shipped 5.8 million units, marking a 7% increase [6][7] Future Outlook - Major industry players are expected to unveil new product roadmaps to stimulate PC purchasing demand, with Qualcomm and Intel announcing upgrades to their high-end PC chipsets [5][6] - The 2026 CES is anticipated to showcase new and attractive PC products, with a focus on "device-side AI" [6]

Core Insights - The total shipment volume of desktops, laptops, and workstations is expected to grow by 6.8% year-on-year in Q3 2025, reaching 72 million units, driven by device upgrade demands as Windows 10 service termination approaches [2][5] Group 1: Market Trends - The demand for PC upgrades remains strong among enterprises and consumers, particularly as the deadline for Windows 10 service termination approaches on October 14 [5] - A significant portion of Windows users are still on Windows 10 or using PCs older than five years, indicating a need for continued promotional efforts from Microsoft and its partners [5][8] Group 2: B2B Transition Challenges - A recent survey indicates that only 39% of B2B clients have completed their transition to Windows 11, with 18% planning to continue using Windows 10 post-support termination [8] - This presents an ongoing opportunity for Microsoft and its OEM partners to provide transition support and guidance [8] Group 3: Product Innovations - Major industry players are unveiling new product roadmaps to stimulate PC purchasing demand, with Qualcomm and Intel launching upgraded chipsets [8] - The 2026 CES is anticipated to showcase new and attractive PC products, with a focus on "device-side AI" [8] Group 4: Company Performance - Lenovo showed strong performance with a 17% year-on-year increase in shipments, reaching 19.4 million units, solidifying its market leadership [8] - HP ranked second with 15 million units shipped, an 11% increase, while Dell ranked third with a 3% growth [8] - Apple and Asus also performed well, with Apple maintaining over 6 million units shipped for five consecutive quarters and Asus achieving a 7% year-on-year growth [8]