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 - The article discusses the contrasting performance of Qualcomm Inc. compared to its peers in the semiconductor industry, particularly in the context of the AI boom [1][2]. Company Performance - Qualcomm's stock has gained just over 6% since the beginning of the year, significantly lagging behind the Nasdaq Composite's gain of over 17% and its closest competitors, Nvidia and Broadcom, which gained approximately 34% and 52% respectively [2]. - Despite launching new high-performance processors, the Snapdragon X2 Elite and Snapdragon X2 Elite Extreme, Qualcomm's stock performance remains subdued [3]. Market Dynamics - Qualcomm's stock has shown a rare pattern of performance, with eight out of the last ten weeks being up weeks, indicating potential statistical pressure for excessive bullishness [4][6]. - The stock has been sensitive to negative news, such as the antitrust investigation by China into Qualcomm's acquisition of Autotalks, which led to a significant drop in share price [7]. Investment Vehicles - Direxion offers ETFs that provide leveraged and inverse exposure to Qualcomm's stock, catering to both bullish and bearish investors [8][9]. - The Direxion Daily QCOM Bull 2X Shares (QCMU) aims to track 200% of Qualcomm's daily performance, while the Direxion Daily QCOM Bear 1X Shares (QCMD) provides 100% of the inverse performance [9][10]. - The QCMU ETF has gained 3% since its launch, with a notable 28% gain over a seven-week period starting from August 11 [12]. In contrast, the QCMD ETF has lost over 2% since its debut, but its value has risen during periods of skepticism towards AI [14][16].

Group 1 - Qualcomm announced the acquisition of Arduino to expand its presence in the edge computing sector and reduce reliance on the smartphone market [1][5] - The acquisition details, including pricing, were not disclosed [1] - Qualcomm has previously acquired Foundries.io and Edge Impulse to strengthen its edge computing capabilities [1] Group 2 - Edge computing involves processing data away from centralized data centers, applicable in various fields such as retail, IoT devices, and remote monitoring [2] - Arduino develops software and hardware for a range of applications, from hobbyist projects to enterprise IoT platforms [3] Group 3 - Qualcomm's CEO highlighted Arduino's strong global community of developers and creators, emphasizing the potential for innovation [4] - The combination of Arduino's open-source approach with Qualcomm's technology aims to accelerate the development of intelligent solutions [5] Group 4 - Qualcomm is diversifying its offerings as the smartphone market stagnates, with a significant portion of its revenue still coming from handset sales [5][6] - In 2024, Qualcomm reported total revenue of $33.2 billion, with $24.9 billion from handset sales, $5.4 billion from IoT, and $2.9 billion from automotive [7]

Core Insights - Qualcomm is positioning India as a key market due to the government's push for manufacturing and the increasing demand for premium devices [1][10][13] - The Snapdragon 8 Elite Gen 5 Mobile Platform was launched as the world's fastest mobile system-on-a-chip, featuring a CPU processing speed of up to 4.6 GHz and GPU speed of 1.2 GHz per core [2][12][13] - The chipset includes a hexagon NPU with a 37% performance improvement over its predecessor, enhancing AI capabilities in applications such as real-time translation [6][7][13] Market Position - Snapdragon holds a 40% market share in the smartphone segment priced above Rs 25,000, indicating strong brand recognition in India [1][13] - The chipset will be featured in flagship devices from various global manufacturers, with Chinese smartphone makers leading the adoption [8][13] Government and Industry Engagement - Qualcomm is deepening its engagement with India's digital ecosystem, benefiting from local manufacturing initiatives and the growth of AI and automotive sectors [9][11][13] - The company has established strong relationships across government, retail, and carrier sectors, facilitating new opportunities and collaborations with original equipment manufacturers (OEMs) [10][11][13] Employment and Local Impact - Qualcomm employs approximately 20,000 people in India, reflecting its commitment to the local market and workforce [11][13] - The company is actively collaborating with major PC manufacturers in India, enhancing its presence in the personal computer segment [12][13]

Core Insights - Qualcomm has launched two new AI chips, Snapdragon X2 Elite and Snapdragon X2 Elite Extreme, aimed at enhancing multitasking capabilities in Windows PCs, featuring multi-day battery life and advanced AI functionalities [1][7]. Product Features - The Snapdragon X2 Elite chip utilizes the 3rd Gen Qualcomm Oryon CPU, offering up to 31% faster performance at ISO power and up to 43% lower power consumption compared to its predecessor [2]. - Snapdragon X2 Elite Extreme is designed for ultra-premium devices, delivering up to 75% faster CPU performance than competitors, with a boost frequency of 5 GHz for single-core operations [2][3]. Technical Specifications - Snapdragon X2 Elite features a 128-bit memory interface with a bandwidth of 152 GB/s, while the X2 Elite Extreme has a 192-bit memory interface providing a higher bandwidth of 228 GB/s [3]. Industry Context - Intel is expanding its manufacturing capacity to enhance its position in the AI sector, with its Xeon 6 processors designed to support large AI workloads [4]. - NVIDIA is gaining traction in enterprise AI, with its DGX Cloud AI infrastructure seeing increased adoption across various industries [5]. Financial Performance - Qualcomm shares have increased by 0.5% over the past year, while the industry has seen a growth of 47.2% [6]. - The company's shares currently trade at a price/earnings ratio of 14.61, which is lower than the industry average of 36.51 [8]. - Earnings estimates for 2025 have risen by 1.2% to $11.89 per share, and for 2026, estimates have increased by 0.4% to $11.88 [9].