Qualcomm Q4 Beats Estimates, Mobile Revenue Up 14%

On November 5, Qualcomm reported its fiscal fourth-quarter results for 2025, surpassing analyst expectations on both revenue and earnings per share, while also issuing guidance for the next quarter that exceeded forecasts, driving its stock up nearly 4% at the close. However, a substantial income tax expense weighed on net profit, causing shares to fall more than 2% in after-hours trading.

The report revealed that Qualcomm's Q4 revenue rose 10% year-over-year to $11.27 billion, beating the market estimate of $10.79 billion. Adjusted non-GAAP earnings per share increased 12% to $3, exceeding the expected $2.88. Behind these strong numbers, however, a $3.12 billion income tax expense led to a net loss of $2.89 per share, contrasting sharply with the $2.92 billion net profit and $2.59 per share in the same quarter of 2024.

Looking at key business segments, Qualcomm Technology Licensing (QTL) revenue fell 7% year-over-year to $1.409 billion but still outperformed market expectations, with a pre-tax margin dipping 2 percentage points to 72%. Qualcomm CDMA Technologies (QCT) revenue grew 13% to $9.821 billion, with a pre-tax margin rising 1 percentage point to 29%.

Within QCT, all three main business lines exceeded forecasts. Mobile revenue reached $6.961 billion, up 14% year-over-year; automotive revenue hit $1.053 billion, up 17%; and IoT, including smart devices, generated $1.807 billion, up 7%.

President and CEO Cristiano Amon commented, “The record revenue in QCT this fiscal year demonstrates the strength of our business. Excluding Apple, QCT revenue grew 18% year-over-year, with automotive and IoT combined up 27%. We are encouraged by the momentum across our business, the availability of our autonomous driving technology stack, and our expansion in data centers and advanced robotics.”

Looking ahead to fiscal Q1 2026, Qualcomm expects revenue between $11.8 billion and $12.6 billion, with a midpoint of $12.2 billion—up 10% year-over-year and above the market consensus of $11.62 billion. Adjusted EPS is projected between $3.30 and $3.50, with a midpoint of $3.40, slightly above analysts' $3.31 estimate. QTL revenue for the quarter is forecasted at $1.4–1.6 billion, and QCT at $10.3–10.9 billion.

Amon noted that growth in the mid-tier smartphone market has faded, with recent performance driven by consumer upgrades to higher-end devices equipped for AI applications.

While Qualcomm remains a leader in mobile communications chips, the company is actively diversifying. Beyond the well-established smart automotive sector, Qualcomm is expanding into the PC market, traditionally dominated by Intel and AMD, and into AI data centers, where NVIDIA leads. These moves aim to offset potential revenue losses as Apple transitions to its own in-house modem chips in the coming years.

In September, Qualcomm launched the Snapdragon X2 Elite series processors to strengthen its position in the PC market. In October, it introduced two AI inference chips, AI200 and AI250, designed for integration into full liquid-cooled server racks. The AI200 is expected to ship in 2026, and the AI250 in 2027.