Qualcomm (NASDAQ: QCOM) reported fiscal Q4 results and an outlook that came in above Wall Street expectations, as demand for premium, AI‑ready smartphones improved and the company’s automotive business crossed the $1 billion quarterly milestone for the first time.
Key takeaways
- Q4 FY25 (ended Sept. 28): Revenue $11.27B (+10% y/y); non‑GAAP EPS $3.00 (+12% y/y). A non‑cash U.S. tax charge of $5.7B produced a GAAP loss, but did not affect adjusted results. 1
- Segment mix: QCT (chips) revenue $9.82B (+13%); Handsets $6.96B (+14%); Automotive $1.05B (+17%); IoT $1.81B (+7%). QTL (licensing) $1.41B (‑7%). 1
- Outlook (Q1 FY26): Revenue $11.8B–$12.6B; non‑GAAP EPS $3.30–$3.50; QCT $10.3B–$10.9B; QTL $1.4B–$1.6B. 1
- Capital returns: $3.4B returned in Q4 (buybacks + dividend); dividend remains $0.89 per share (next payment Dec. 18, 2025). 1
- Stock: QCOM last traded near $179 with an intraday range of $172.50–$183.39 (see live chart above).
Earnings snapshot: beats on revenue and EPS; one‑time tax charge hits GAAP
Qualcomm’s September‑quarter revenue rose 10% to $11.27B, while non‑GAAP EPS increased to $3.00 from $2.69 a year ago. GAAP results reflected a $5.7B non‑cash tax charge tied to recent U.S. tax legislation, resulting in a quarterly GAAP loss; the company noted the charge does not affect its adjusted metrics. For the full fiscal year, non‑GAAP EPS grew 18% to $12.03 on $44.14B in revenue. 1
What drove the quarter: AI‑ready phones and a landmark auto milestone
Chip (QCT) revenue climbed 13%, led by handsets (+14%) as consumers gravitated to premium devices capable of running on‑device AI. Automotive revenue surpassed $1B in a single quarter for the first time; IoT grew 7%. Licensing (QTL) declined 7% year over year. Management also highlighted 18% growth in total non‑Apple QCT revenue for the fiscal year, underscoring diversification beyond a single handset customer. 1
On the demand backdrop, Qualcomm pointed to a rebound in global smartphone upgrades—particularly in China and India—favoring high‑end devices with stronger AI capabilities, a theme the company expects to persist into fiscal Q1. 2
Guidance: above the Street across the board
For Q1 FY26, Qualcomm guided revenue to $11.8B–$12.6B and non‑GAAP EPS to $3.30–$3.50, both ahead of consensus heading into the print. Segment outlooks call for QCT $10.3B–$10.9B and QTL $1.4B–$1.6B. 1
Product & platform context: Snapdragon momentum across mobile and PCs
Qualcomm is leaning into AI across devices. In mobile, the newly announced Snapdragon 8 Elite Gen 5 raises CPU/GPU efficiency and accelerates the on‑device NPU for AI features in upcoming flagship Android phones. In PCs, the company’s Snapdragon X family (including the X2 Elite line) targets Windows AI laptops with large‑TOPS NPUs for on‑device inference. These road‑map updates frame investor expectations for 2026 device cycles. 3
Capital returns and dividend
Qualcomm returned $3.4B to shareholders in Q4—$2.44B via buybacks (16M shares) and $957M in dividends—and $12.6B over the full fiscal year. The board recently declared a $0.89 quarterly dividend payable Dec. 18, 2025 to holders of record Dec. 4. 1
Stock today: where QCOM is trading
As of the latest trade, QCOM is around the high‑$170s, with today’s intraday high near $183 and low near $172 (see live chart at the top). Year to date, shares are up by double digits, supported by the company’s AI chip narrative and improving handset mix. 2
What to watch next
- Smartphone cycle: Whether AI‑centric premium upgrades continue through holiday 2025 into early 2026. 2
- Automotive growth: Can Qualcomm sustain >$1B/quarter in auto and expand design wins across ADAS and digital cockpit? 1
- PC traction: Shipments and performance of Snapdragon X‑based Windows AI laptops relative to x86 competitors over the next two quarters. 4
- Licensing and customer mix: Investors continue to monitor Apple’s longer‑term modem roadmap and its implications for QTL and QCT contributions. 2
Methodology & sources
This article draws on Qualcomm’s official Q4/FY25 earnings release and presentation, plus contemporaneous wire coverage and recent product announcements for context. Key documents: the earnings release PDF (financials and guidance), the segment breakdown and capital return tables, and the Reuters report detailing management commentary on smartphone demand and the tax charge. 1
Disclosure: This article is for informational purposes only and does not constitute investment advice.
