Skip to content
    QCOM
    Earnings call· Sep 2025(Q4 FY25)

    QUALCOMM INC/DE QCOM

    Nov 5, 2025 Source

    Executive summary

    Qualcomm Q4 FY25 — Strong Android, Automotive, and IoT Growth Drives Record Results

    Qualcomm delivered strong Q4 FY25 results, driven by robust demand for Snapdragon-powered Android handsets, record automotive revenues, and growth across IoT segments. The company exceeded its own guidance and achieved record annual QCT revenues, fueled by significant non-Apple growth. Qualcomm is expanding its IP and capabilities into new markets like data centers and robotics, with AI-driven opportunities across edge-to-cloud solutions.

    Highlights

    5

    • Q4 FY25 revenues of $11.3 billion and non-GAAP EPS of $3, both exceeding the high end of guidance.

    • Record QCT automotive quarterly revenues in excess of $1 billion, up 17% YoY.

    • Fiscal '25 non-GAAP revenues of $44 billion, up 13% YoY, with record QCT annual revenues of $38.4 billion, up 16% YoY.

    • Non-Apple QCT revenues grew 18% YoY in FY25, exceeding prior estimates.

    • Record free cash flow of $12.8 billion in FY25, with nearly 100% returned to stockholders.

    Concerns

    2

    • Non-cash charge of $5.7 billion in Q4 FY25 due to the One Big Beautiful tax bill, reducing deferred tax assets (excluded from non-GAAP).

    • QCT IoT revenues expected to sequentially decline in Q1 FY26 due to seasonality in consumer products.

    Guidance & targets

    16
    CategoryTargetConfidence
    Q1 FY26 Non-GAAP Revenues
    $11.8 billion to $12.6 billion
    high materiality
    High
    Q1 FY26 Non-GAAP EPS
    $3.30 to $3.50
    high materiality
    High
    Q1 FY26 QTL Revenues
    $1.4 billion to $1.6 billion
    medium materiality
    High
    Q1 FY26 QTL EBT Margins
    74% to 78%
    medium materiality
    High
    Q1 FY26 QCT Revenues
    $10.3 billion to $10.9 billion
    high materiality
    High
    Q1 FY26 QCT EBT Margins
    30% to 32%
    high materiality
    High
    Q1 FY26 QCT Handset Revenue Growth
    low teens percentage growth sequentially
    medium materiality
    High
    Q1 FY26 QCT IoT Revenue
    sequential decline
    medium materiality
    High
    Q1 FY26 QCT Automotive Revenue
    flat to slightly up on a sequential basis
    medium materiality
    High
    Q1 FY26 Non-GAAP Operating Expenses
    approximately $2.45 billion
    medium materiality
    High
    Non-GAAP Tax Rate
    13% to 14% range
    medium materiality
    High
    FY29 Automotive Revenue Target
    $8 billion
    high materiality
    High
    FY29 IoT Revenue Target
    $14 billion
    high materiality
    High
    Data Center Revenue Ramp
    start to become material in fiscal '27
    high materiality
    High
    Data Center Revenue Opportunity
    potential multibillion-dollar revenue opportunity
    high materiality
    High
    Snapdragon-powered AI PCs Design Wins
    approximately 150 designs
    medium materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    QCT
    Exceeded expectations, driven by strong Android handset demand, automotive, and IoT. Achieved long-term operating margin target in FY25.
    FY25 Annual Revenue: $38.4 billionFY25 Annual Revenue Growth: 16% YoYFY25 Operating Margin: 30%
    		$9.8 billion13%9% sequential29% EBT margin
    QCT Handset
    Reflects increased demand for premium Android handsets powered by Snapdragon 8 Elite Gen 5 platform.
    		$7 billion14%——
    QCT IoT
    Driven by strength across industrial and networking products, and increased demand for AI smart glasses.
    FY25 Annual Revenue Growth: 22% YoY
    		$1.8 billion7%——
    QCT Automotive
    Surpassed $1 billion quarterly revenue milestone, with accelerating adoption of Snapdragon Digital Chassis platform.
    FY25 Annual Revenue Growth: 36% YoY
    		$1.1 billion17%——
    QTL
    Above midpoint of guidance, driven by slightly higher handset units.
    		$1.4 billion——72% EBT margin

    Operational metrics

    16
    Non-GAAP Revenues
    $44 billion13% year-over-year growth
    FY25

    Company-wide non-GAAP revenues for the full fiscal year.

    Non-GAAP EPS
    $12.0318% year-over-year growth
    FY25

    Company-wide non-GAAP EPS for the full fiscal year.

    Non-Apple QCT Revenues CAGR
    15%
    last 5 years

    Compounded annual growth rate for non-Apple QCT revenues.

    Non-Apple QCT Revenues Growth
    17%
    FY24

    Year-over-year growth for non-Apple QCT revenues in the prior fiscal year.

    Non-Apple QCT Revenues Growth
    18%
    FY25

    Year-over-year growth for non-Apple QCT revenues in the current fiscal year.

    Capital returned to stockholders
    nearly 100%
    FY25

    Percentage of free cash flow returned through repurchases and dividends.

    Non-GAAP Tax Rate
    13% to 14%lower cash tax payments relative to prior expectations
    going forward

    Expected range due to the One Big Beautiful tax bill.

    Samsung Galaxy Share Assumption
    75%new baseline
    any new Galaxy

    Financial assumption for share in new Galaxy devices, previously 50%.

    Snapdragon Insiders Community Members
    more than 20 million
    current

    Growth of tech enthusiasts, developers, and fans.

    Interbrand Top 100 Global Brands List Ranking
    39debuted
    2025

    Qualcomm's debut on the list, reflecting Snapdragon's strength.

    Kantar BrandZ Most Valuable Global Brands List Ranking
    38for the first time ever
    current

    Snapdragon's first inclusion on the list.

    Snapdragon Summit Social Media Impressions
    over 547 million
    event

    Generated by the Snapdragon Summit events.

    Snapdragon Summit Keynote Views
    over 26 million
    event

    Unique views across both Maui and Beijing events.

    Snapdragon Ride Pilot Validated Countries
    60extends to 100 in 2026
    current

    Current validation for L2+ automated driving solution.

    Arduino IoT Development Ecosystem Users
    more than 30 million
    current

    Users in the open-source hardware and software ecosystem.

    Data Center Target Deployment
    200 megawatts
    starting 2026

    Target deployment for AI inference solutions with HUMAIN.

    Industry KPIs

    4
    MetricValueDetails
    Ai data center revenue—
    Design wins socket pipelineapproximately 150 designsdesigns
    Node platform ramp scheduleSnapdragon 8 Elite Gen 5 mobile platform; Snapdragon X2 Elite and X2 Elite Extreme
    End market segment revenue mixHandset: $7 billion; IoT: $1.8 billion; Automotive: $1.1 billionUSD

    Product announcements

    5
    ProductTypeDetails
    Snapdragon 8 Elite Gen 5 mobile platformlaunch
    Snapdragon X2 Elite and X2 Elite Extremelaunch
    Snapdragon Ride Pilotlaunch
    AI200 and AI250 SoCs and accelerator cards and rackslaunch
    Arduino UNO Q single-board computerlaunch

    Deals & partnerships

    3
    ArduinoPremier open-source hardware and software company with an IoT development ecosystem.

    Builds on acquisitions of Edge Impulse and Foundries.io, expanding portfolio to a wide range of customers and verticals.

    GoogleExpanded partnership including integration of Google Gemini models to Snapdragon Digital Chassis solutions.

    Announced at IAA Mobility.

    HUMAINFirst customer for AI inference optimized AI200 and AI250 SoCs and associated accelerator cards and racks.

    Represents Qualcomm's entry into the AI inference data center market.

    Risks & headwinds

    2
    Non-cash charge from tax billQ4 FY25

    $5.7 billion

    Mitigation: Excluded from non-GAAP metrics; non-GAAP tax rate expected to be 13-14% going forward with lower cash tax payments.

    Seasonal decline in QCT IoT revenuesQ1 FY26

    sequential decline

    Mitigation: Consistent with prior year seasonality in consumer products; expected to grow revenue through the rest of the fiscal year.

    What to watch in Q1 FY26

    4

    Data Center Roadmap and Performance Update

    first half of 2026
    CurrentAI200 and AI250 SoCs unveiled, HUMAIN as first customer
    TargetDetailed roadmap, performance KPIs, and customer engagement details

    Why it matters

    This update will clarify the scope and potential of Qualcomm's new multibillion-dollar data center opportunity, which has been pulled forward📎 to FY27.

    I would like to share that we're looking forward to providing an update in the first half of 2026 on our data center plans, including our roadmap performance and differentiated memory and compute technology.

    Q&A highlights

    5

    What is Qualcomm's right to win in data centers, what are the specs of AI200/250, and is the hyperscaler engagement distinct from HUMAIN?

    Qualcomm aims for power-efficient performance in AI inference, focusing on computer density and tokens per watt. They are building a new architecture beyond traditional GPUs. More details on roadmap, performance, and customer engagement (including hyperscalers) will be provided in H1 2026. Data center revenue ramp is pulled forward to FY27.

    “We think there are 2 areas that we outlined that we can participate into the data center. We were incredibly excited about the size of the opportunity in the next phase, I think, of data center build-out where there's going to be real competition. We go from training to inference.”

    asked by Joshua Buchalter · answered by Cristiano Amon

    2 min read5 chapters

    Detailed Narrative

    01

    Snapdragon Mobile and PC Innovation

    Qualcomm unveiled its Snapdragon 8 Elite Gen 5 mobile platform, featuring a custom Oryon CPU, upgraded NPU, and GPU, setting new benchmarks for AI smartphones. For premium laptops, the Snapdragon X2 Elite and X2 Elite Extreme platforms were introduced, outperforming competitors in speed, power efficiency, and AI performance, with approximately 150 designs expected by 2026.

    02

    Expansion in XR and Automotive

    The company highlighted strong demand for Snapdragon-powered smart glasses, particularly from Meta, with 30 designs in production or development globally. In automotive, Qualcomm launched Snapdragon Ride Pilot, an L2+ automated driving solution developed with BMW, and expanded its partnership with Google to integrate Gemini models into Snapdragon Digital Chassis for in-vehicle AI.

    03

    Strategic Acquisitions and Edge AI

    Qualcomm completed the acquisition of Arduino, building on prior acquisitions of Edge Impulse and Foundries.io, to provide a comprehensive edge AI development platform. This strategy aims to expand its portfolio across various verticals, including smart home automation, industrial robotics, and drones, leveraging the new Arduino UNO Q single-board computer.

    04

    Data Center Entry and AI Inference

    Qualcomm announced its entry into the AI inference data center market with AI200 and AI250 SoCs and accelerator cards, targeting power-efficient performance. HUMAIN is the first customer, with a target deployment of 200 megawatts starting in 2026. The company plans to provide a detailed update on its data center roadmap and performance in H1 2026, pulling revenue materiality forward to FY27.

    05

    Fiscal 2025 Performance and Long-Term Targets

    Qualcomm reported strong FY25 non-GAAP revenues of $44 billion, up 13% YoY, and record QCT annual revenues of $38.4 billion, up 16% YoY. Automotive and IoT revenues grew 36% and 22% YoY, respectively. The company remains on track for its FY29 long-term revenue commitments of $8 billion for automotive and $14 billion for IoT, with significant upside potential identified in XR and data centers.

    AI-generated summary of the company’s earnings call. Not investment advice.