Qualcomm(US:QCOM)2025-07-30 21:47Financial Data and Key Metrics Changes - In fiscal Q3, the company reported revenues of $10.4 billion and non-GAAP earnings per share of $2.77, which was near the high end of the guidance range [5][21] - The chipset business generated revenues of $9 billion, reflecting a year-over-year growth of 11-22% [5][22] - The licensing business revenues were $1.3 billion with an EBT margin of 71%, above the midpoint of guidance [21] Business Line Data and Key Metrics Changes - Handset revenues increased by 7% year-over-year to $6.3 billion, driven by strong demand for premium tier handsets enabled by the Snapdragon 8 Elite platform [22] - IoT revenues grew 24% year-over-year to $1.7 billion, attributed to increased demand for the Snapdragon AR1 chipset [22] - Automotive revenues reached $984 million, marking a 21% year-over-year increase, driven by content growth in new vehicle launches [22] Market Data and Key Metrics Changes - The company is on track to meet its fiscal 2029 target for combined automotive and IoT revenues of $22 billion, forecasting over 15% year-over-year growth in total QCT non-Apple revenues for fiscal 2025 [6][25] - Snapdragon-based PCs accounted for approximately 9% of Windows laptops sold above the $600 price tier in retail U.S. [8] Company Strategy and Development Direction - The company is focused on expanding its presence in AI, automotive, and IoT markets, with a strong emphasis on partnerships and product innovation [6][12] - The acquisition of AlphaWave IP Group is expected to enhance the company's capabilities in data centers and AI, with revenues anticipated to begin in fiscal 2028 [15][16] - The company aims to maximize shareholder returns while executing across a broad range of growth and diversification opportunities [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Android ecosystem's leadership in AI and the potential for personal AI devices to reshape the mobile industry [7][18] - The company remains confident in its ability to manage margins despite the decline in Apple revenues, with a target of maintaining close to 30% margin [72] Other Important Information - The company returned $3.8 billion to shareholders, including $2.8 billion in stock repurchases and $967 million in dividends [23] - The upcoming Snapdragon Summit event is expected to provide further insights into the company's technology leadership and new product launches [25] Q&A Session Summary Question: Can you speak to the drivers of handset market growth despite lower Apple share? - Management indicated that the growth is driven by new product launches and strong demand, with no evidence of pull-ins [29] Question: Any details on the data center business and hyperscale engagement? - Management stated they are in advanced discussions but could not disclose further details [32] Question: How do you envision AlphaWave integrating into your portfolio? - Management highlighted the focus on building products for general-purpose CPUs and inferencing clusters, leveraging AlphaWave's IP for connectivity [36][38] Question: What are the implications of the decline in Apple on margins? - Management expressed confidence in maintaining margin targets, citing growth opportunities in automotive and IoT that exceed the scale of Apple revenue [72] Question: How do you see growth trends in China? - Management noted strong relationships with Chinese OEMs, including a multi-year agreement with Xiaomi, indicating sustained business growth in the region [65][70]