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%). [2]
- 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. [3]
- Capital returns: $3.4B returned in Q4 (buybacks + dividend); dividend remains $0.89 per share (next payment Dec. 18, 2025). [4]
- 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. [5]
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. [6]
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. [7]
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. [8]
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. [9]
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. [10]
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. [11]
What to watch next
- Smartphone cycle: Whether AI‑centric premium upgrades continue through holiday 2025 into early 2026. [12]
- Automotive growth: Can Qualcomm sustain >$1B/quarter in auto and expand design wins across ADAS and digital cockpit? [13]
- PC traction: Shipments and performance of Snapdragon X‑based Windows AI laptops relative to x86 competitors over the next two quarters. [14]
- Licensing and customer mix: Investors continue to monitor Apple’s longer‑term modem roadmap and its implications for QTL and QCT contributions. [15]
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. [16]
Disclosure: This article is for informational purposes only and does not constitute investment advice.
References
1. s204.q4cdn.com, 2. s204.q4cdn.com, 3. s204.q4cdn.com, 4. s204.q4cdn.com, 5. s204.q4cdn.com, 6. s204.q4cdn.com, 7. www.reuters.com, 8. s204.q4cdn.com, 9. www.theverge.com, 10. s204.q4cdn.com, 11. www.reuters.com, 12. www.reuters.com, 13. s204.q4cdn.com, 14. spectrum.ieee.org, 15. www.reuters.com, 16. s204.q4cdn.com
