Qualcomm is an American company based in San Diego, California, founded in 1985 by Irwin Jacobs and six others. They focus on developing technology for wireless communication, including semiconductors, software, and services. Qualcomm is known for its role in creating 3G, 4G, and 5G technologies. Their products include Snapdragon processors, which are used in many smartphones, as well as other tech like Wi-Fi and Bluetooth.
The company has grown to be a major player in the telecommunications industry, with a strong presence globally. Qualcomm operates through various divisions, including Qualcomm CDMA Technologies and Qualcomm Technology Licensing. They invest heavily in research and development to stay at the forefront of technological advancements. Also, the company aims to meet the increasing demand for high-performance, low-power computing solutions.
Qualcomm Fiscal Q2 2025
Qualcomm (QCOM) reported fiscal Q2 2025 results with $11 billion in GAAP revenue and earnings per share of $2.52. Revenue surpassed the forecast of $10.55 billion, and EPS beat the estimate of $2.80.
Also, the company reported GAAP revenue up 17% year-over-year, and non-GAAP revenue showed 15% growth.
Moreover, net income saw a 21% rise on a GAAP basis and a 15% increase non-GAAP, with diluted EPS improving 22% (GAAP) and 17% (non-GAAP).
The company achieved 25% year-over-year growth in QCT earnings and a 38% increase in combined Automotive and IoT revenues, showing strong diversification efforts.
The company returned $2.7 billion to shareholders through $938 million in dividends and $1.7 billion in stock repurchases.
Outlook
Qualcomm expects Q3 FY25 revenues to range between $9.9 billion and $10.7 billion, with the midpoint below the $10.35 billion consensus estimate.
Also, the company forecasts GAAP diluted EPS to be between $2.14 and $2.34, and Non-GAAP diluted EPS to range from $2.60 to $2.80, reflecting adjustments such as share-based compensation.
Boards Statements
Cristiano Amon, CEO of Qualcomm Incorporated, expressed satisfaction with the company’s strong quarterly results. Amid challenging macroeconomic and trade conditions, he emphasized Qualcomm’s focus on key controllable factors, including its advanced technology roadmap, exceptional product portfolio, strong customer relationships, and operational efficiency.
Amon highlighted the company’s top priorities of executing its diversification strategy and investing in areas that drive long-term value.
Impact on the Stock Market
Qualcomm reported strong Q2 FY25 earnings, beating expectations for revenue and EPS. Despite this, the stock dropped after earnings released. Investors seemed concerned about its future growth, even though automotive and IoT segments showed strong performance. Handset chip sales rose 12% to $6.93 billion, but a weaker revenue outlook for the next quarter overshadowed the results. Shares, already down over 3% this year, fell another 5% in premarket trading due to these concerns.
