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Qualcomm Incorporated QCOM reported strong second-quarter fiscal 2025 results, with both adjusted earnings and revenues beating the Zacks Consensus Estimate. This was driven by healthy demand trends in Android handsets, automotive and IoT businesses. These metrics improved year over year, led by the strength of the business model, revenue diversification and the ability to respond proactively to the evolving market scenario.
Net Income
On a GAAP basis, net income in the March quarter improved to $2.81 billion or $2.52 per share from $2.33 billion or $2.06 per share in the prior-year quarter. The increase in GAAP earnings was primarily attributable to top-line growth.
Quarterly non-GAAP net income came in at $3.17 billion or $2.85 per share compared with $2.76 billion or $2.44 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 2 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
QUALCOMM Incorporated Price, Consensus and EPS Surprise
QUALCOMM Incorporated price-consensus-eps-surprise-chart | QUALCOMM Incorporated Quote
Revenues
On a GAAP basis, total revenues in the fiscal second quarter were $10.98 billion compared with $9.39 billion in the prior-year quarter.
Non-GAAP revenues in the reported quarter were $10.84 billion compared with $9.34 billion a year ago. The quarterly revenues beat the consensus mark of $10.67 billion.
Segment Results
Quarterly revenues from Qualcomm CDMA Technologies (QCT) increased to $9.47 billion from $8.03 billion, driven by strength in the automotive platform and higher demand in handsets and the IoT business. The segment’s revenues exceeded our revenue estimates of $9.19 billion. The company witnessed solid market traction in the EDGE networking business that helps transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets.
Automotive revenues rose 59% year over year to $959 million, driven by increased content in new vehicle launches with its Snapdragon Digital Chassis platform. During the quarter, Qualcomm secured 30 new designs, including five ADAS (Advanced Driver Assistance System) programs and designs from Chinese automakers such as Nio, Zeekr, Great Wall, Dongfeng and more.
Handset revenues were up 12% year over year to $6.93 billion, reflecting the benefit of increased premium-tier Android shipments. IoT revenues were up 27% year over year to $1.58 billion, driven by high demand for products with connectivity, processing and AI technologies. EBT margin for the QCT segment improved to 30% from 29%.
Qualcomm Technology Licensing (QTL) revenues remained flat at $1.32 billion. The segment’s revenues matched our estimates of $1.32 billion. EBT margin declined to 70% from 71%.