Qualcomm Q3 Earnings: EPS Surges 29% as Automotive, IoT Drive Growth
Qualcomm (NASDAQ: QCOM) reported strong Q3 fiscal 2025 results, with total revenues reaching $10.4 billion, up 10% year-over-year.
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Rhea-AI Summary
Qualcomm (NASDAQ: QCOM) reported strong Q3 fiscal 2025 results, with total revenues reaching $10.4 billion, up 10% year-over-year. The company's diversification strategy showed success with Automotive and IoT sectors growing 23% combined.
Key highlights include GAAP net income of $2.67 billion (up 25%) and non-GAAP EPS of $2.77 (up 19%). QCT segment revenue grew 11% to $8.99 billion, with notable increases in Automotive (21%) and IoT (24%). The company returned $3.8 billion to shareholders through dividends and share repurchases.
For Q4 2025, Qualcomm forecasts revenues between $10.3-11.1 billion and non-GAAP EPS of $2.75-2.95.
Positive
- Total revenue increased 10% YoY to $10.4 billion
- GAAP net income grew 25% to $2.67 billion
- Automotive revenue surged 21% to record $984 million
- IoT revenue grew 24% to $1.68 billion
- QCT segment profitability improved to 30% EBT margin
- Returned $3.8 billion to shareholders through dividends and buybacks
Negative
- Handset revenue growth slower at 7% compared to other segments
- QTL segment showed modest 4% revenue growth
Details
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Qualcomm Incorporated (NASDAQ: QCOM) announced on July 30, 2025, robust financial results for its third fiscal quarter, showcasing significant year-over-year growth in revenue and profitability driven by the company's ongoing diversification strategy. The technology firm reported total revenues of
The company's performance was highlighted by substantial gains in its Automotive and Internet of Things (IoT) sectors, which together saw revenues climb by
"Another quarter of strong growth in QCT Automotive and IoT revenues further validates our diversification strategy and confidence in achieving our long-term revenue targets,” stated Cristiano Amon, President and CEO of Qualcomm. “Our leadership in AI processing, high-performance and low-power computing and advanced connectivity positions us to become the industry platform of choice as AI gains scale at the edge."
Financial Performance Highlights
Qualcomm presented its results on both a GAAP (Generally Accepted Accounting Principles) and a non-GAAP basis. Non-GAAP figures are adjusted to exclude certain items, such as stock-based compensation, which the company believes provides investors with a clearer view of its core operational performance.
For the third fiscal quarter ended June 29, 2025, the key financial metrics were:
- Total Revenues:
$10.365 billion 10% - GAAP Net Income:
$2.666 billion 25% $2.129 billion - Non-GAAP Net Income:
$3.040 billion 15% $2.648 billion - GAAP Diluted EPS:
$2.43 29% $1.88 - Non-GAAP Diluted EPS:
$2.77 19% $2.33
Segment Growth Underscores Diversification
The company's results were bolstered by solid performance across its primary business segments, QCT (Qualcomm CDMA Technologies) and QTL (Qualcomm Technology Licensing).
The QCT segment, which includes semiconductors and related technologies, generated revenues of
- Automotive: Revenues surged
21% $984 million - IoT (Internet of Things): Grew by
24% $1.681 billion - Handsets: The largest stream saw a
7% $6.328 billion
The profitability of the QCT segment also improved, with Earnings Before Taxes (EBT) as a percentage of revenues rising to
The QTL segment, Qualcomm's licensing arm, reported revenues of
Capital Return and Business Outlook
Qualcomm continued its commitment to returning capital to its shareholders, distributing a total of
Looking ahead to the fourth fiscal quarter of 2025, the company provided the following guidance:
- Revenues: Projected to be between
$10.3 billion $11.1 billion - GAAP Diluted EPS: Expected in the range of
$2.23 $2.43 - Non-GAAP Diluted EPS: Forecasted to be between
$2.75 $2.95
This forward-looking guidance is based on the company's current outlook and is subject to various risks and uncertainties, as outlined in its public filings.
This article is based solely on information provided in Qualcomm Incorporated's press release dated July 30, 2025. The content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. Stock Titan and its writers make no representations as to the accuracy, completeness, or timeliness of the information. Investors should conduct their own due diligence before making any investment decisions.
Source: Qualcomm Incorporated
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