QUALCOMM INC/DE Q3 FY25 earnings call QCOM

Qualcomm's Snapdragon 8 Elite platforms are driving innovation in mobile processors, powering 124 designs shipped or announced to date and leading the transition to AI smartphones. Samsung noted that 70% of Galaxy S25 users are utilizing Galaxy AI, with Google Gemini AI usage nearly tripling among S25 users compared to S24. In AI PCs, Snapdragon X Series platforms are gaining traction, with multiple new devices launched from leading OEMs and over 100 designs expected by 2026. Snapdragon-based PCs currently hold approximately 9% of the Windows laptop market above the $600 price tier in key retail markets.

The Snapdragon Digital Chassis solutions continue to see strong adoption in the automotive ecosystem, with 12 new designs during the quarter and 50 vehicle launches this fiscal year. BMW's upcoming Neue Klasse vehicles will launch globally with Qualcomm's ISO safety-certified ADAS stack and Snapdragon Ride platforms. In industrial IoT, Dragonwing platforms are expanding, with new collaborations for AI On-Prem Appliance Solutions and AI Inference Suite, alongside continued strength in edge networking driven by Wi-Fi 7 and 5G-enabled fixed wireless access platforms.

Qualcomm is expanding into the data center market by building NPU-based AI inference accelerator cards and custom SoCs for general purpose and AI head node compute solutions, leveraging its Oryon CPU. The company reached an agreement to acquire Alphawave IP Group plc, a leader in high-speed wire connectivity, expected to close in Q1 CY26, to accelerate its roadmap. Qualcomm is in advanced discussions with a leading hyperscaler, with revenues from this segment anticipated to begin in the fiscal '28 timeframe. An MOU with HUMAIN was also signed to develop AI data centers in Saudi Arabia.

Qualcomm identifies personal AI devices, such as smart glasses and wearables, as a significant new opportunity, evolving independently of smartphones to provide unique personalized AI and agentic use cases. These devices require Snapdragon's always-on connectivity, power-efficient processing, on-device AI, and advanced sensors. Meta AI smart glasses are cited as a prime example. Robotics is another key growth area, with a potential $1 trillion TAM in the next decade, where Qualcomm's expertise in high-performance computing, on-device AI, and industrial-grade silicon provides a competitive foundation for autonomous robots and industrial automation.

Qualcomm delivered Q3 FY25 revenues of $10.4 billion and non-GAAP EPS of $2.77, both near the high end of guidance. The company returned $3.8 billion to stockholders, including $2.8 billion in stock repurchases and $967 million in dividends. For Q4 FY25, Qualcomm forecasts revenues of $10.3 billion to $11.1 billion and non-GAAP EPS of $2.75 to $2.95. The company is on track to deliver 12% revenue and 16% non-GAAP EPS growth for FY25, with QCT non-Apple revenues expected to grow over 15% YoY for the second consecutive year, reinforcing confidence in its FY29 targets.