In This Article:
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Non-GAAP Revenue: $10.8 billion.
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Non-GAAP Earnings Per Share (EPS): $2.85.
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Chipset Business Revenue: $9.5 billion.
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Automotive Revenue Growth: 59% year-over-year.
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IoT Revenue Growth: 27% year-over-year.
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Licensing Business Revenue: $1.3 billion.
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QCT Handset Revenue: $6.9 billion, 12% year-over-year growth.
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QCT IoT Revenue: $1.6 billion, 27% year-over-year growth.
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QCT Automotive Revenue: $959 million, 59% year-over-year growth.
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QTL Revenue: $1.3 billion, EBIT margin of 70%.
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Stockholder Returns: $2.7 billion, including $938 million in dividends and $1.7 billion in stock repurchases.
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Guidance for Q3 Revenue: $9.9 billion to $10.7 billion.
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Guidance for Q3 Non-GAAP EPS: $2.60 to $2.80.
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QCT Revenue Guidance: $8.7 billion to $9.3 billion, EBIT margin of 28% to 30%.
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Non-GAAP Operating Expenses Guidance: Approximately $2.25 billion.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Qualcomm Inc (NASDAQ:QCOM) reported non-GAAP revenues of $10.8 billion and non-GAAP earnings per share of $2.85, both exceeding the midpoint of guidance.
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The chipset business generated $9.5 billion in revenues, driven by strong performance across handsets, automotive, and IoT, with automotive and IoT revenues increasing 59% and 27% year-over-year, respectively.
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The company is making significant strides in AI, with advancements in smaller GenAI models that can run directly on devices, enhancing Qualcomm's opportunities in the AI space.
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Qualcomm Inc (NASDAQ:QCOM) is expanding its presence in the automotive sector, securing 30 new designs, including five ADAS programs, and is on track to reach $8 billion in automotive revenues by fiscal '29.
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The company is focused on growing its non-handset revenues to $22 billion by fiscal '29, with strong demand in industrial IoT and strategic acquisitions enhancing its capabilities in this area.
Negative Points
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Licensing business revenues were $1.3 billion, slightly below expectations due to lower handset units in emerging regions.
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There is uncertainty around the impact of the global trade landscape and tariffs on demand across Qualcomm Inc (NASDAQ:QCOM)'s businesses.
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The company is experiencing a decline in its share with a major US customer, expecting it to drop to approximately 70% in the upcoming product launch.
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Gross margins in the chipset segment were slightly down due to mix across tiers and segments, impacting profitability.
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Discussions with Huawei regarding royalty revenue remain ongoing with no significant updates, reflecting challenges in negotiations.