Qualcomm (QCOM) Q1 earnings report 2025

Qualcomm reported better-than-expected fiscal first-quarter outcomes on Wednesday and issued robust steerage for the present interval.

Here is how the chipmaker did versus LSEG consensus estimates for the quarter ending Dec. 29:

• Earnings per share: $3.41, adjusted, vs. $2.96 estimated
• Income: $11.67 billion vs. $10.93 billion estimated

Income within the quarter rose 18% from $9.92 billion a yr in the past. Shares fell 4% in prolonged buying and selling.

For the March quarter, Qualcomm stated it expects income of between $10.2 billion and $11 billion, which at its midpoint tops LSEG expectations of $10.34 billion. The corporate expects adjusted earnings of between $2.70 and $2.90 a share. The center of the vary is greater than Wall Avenue’s estimate of $2.69 per share.

Qualcomm stated internet earnings elevated 15% to $3.18 billion, or $2.83 per share from $2.77 billion, or $2.46 per share, a yr earlier.

The corporate’s adjusted earnings determine excluded objects akin to anticipated income ensuing from the settlement of a dispute, acquisition-related objects, in addition to analysis and growth expenditures.

All three of Qualcomm’s main finish markets for its chips grew through the quarter. Its QCT division, which incorporates gross sales from bodily chips, rose 20% to $10.1 billion.

An important marketplace for Qualcomm is cell handsets, which grew 13% on an annual foundation to $7.57 billion in gross sales. Analysts polled by FactSet have been searching for $7.04 billion in handset gross sales, or about 5% development.

The fastest-growing marketplace for Qualcomm is its automotive enterprise, which grew 61% to $961 million in gross sales, as long-term contracts for the corporate’s components and software program flip into recorded income.

Qualcomm noticed large demand from clients in China for costly “premium-tier” smartphones, CEO Cristiano Amon instructed CNBC’s Kristina Partsinevelos. The corporate additionally benefited from Samsung’s newest Galaxy system utilizing Qualcomm processors completely.

Amon stated on a name with analysts that it believes the latest launch of the DeepSeek R1 AI mannequin was good for Qualcomm, as a result of its chips can run the environment friendly mannequin domestically, as a substitute of within the cloud.

“DeepSeek R1 and different related fashions just lately demonstrated that AI fashions are creating quicker, turning into smaller, extra succesful and environment friendly, and now in a position to run instantly on system,” Amon stated.

Qualcomm’s “IoT” enterprise consists of low-power chips for industrial functions in addition to the chips Qualcomm sells to Meta to energy its Quest headsets and Ray-Ban-branded Meta good glasses. It additionally consists of gross sales of Snapdragon Elite chips for Home windows laptops. The primary Qualcomm laptop computer chips have been launched final yr.

Income within the firm’s IoT enterprise grew 36% through the quarter to $1.55 billion.

“The Snapdragon primarily based Ray-Ban meta glasses proceed to exceed expectations as they undertake extra AI options,” Amon stated. “We stay optimistic that we’re originally of an inflection level for good glasses to realize scale as they turn into wearable.”

Qualcomm additionally has a licensing enterprise, known as QTL, the place different know-how corporations pay it for entry to its mental property associated to 5G and mobile know-how. Qualcomm reported $1.54 billion in gross sales within the division, and it had signed notable Chinese language smartphone maker Transsion to a 4G license, in addition to finalized negotiations for long-term licenses with two different Chinese language producers.

“We stay very happy with the execution of our QTL enterprise in recent times, and we’re nicely positioned to keep up fiscal ’24 income scale going ahead,” Amon stated on a name with analysts.

Qualcomm stated it paid $942 million in dividends and spent $1.8 billion on share repurchases through the quarter.