Qualcomm : FY 2025 2nd Quarter Earnings Release
QCOM
Published on 04/30/2025 at 16:04
FOR IMMEDIATE RELEASE
Qualcomm Contact: Mauricio Lopez-Hodoyan
Vice President, Investor Relations Phone: 1-858-658-4813 | e-mail: [email protected]
-QCT EBT: 25% Year-Over-Year Growth-
-QCT Diversification: Combined Automotive and IoT Revenues Grew 38% Year-Over-Year-
SAN DIEGO - April 30, 2025 - Qualcomm Incorporated (NASDAQ: QCOM) today announced results for its fiscal second quarter ended March 30, 2025.
"We are pleased to report another quarter of strong results," said Cristiano Amon, President and CEO of Qualcomm Incorporated. "As we navigate the current macroeconomic and trade environment, we remain focused on the critical factors we can control - our leading technology roadmap, best-in-class product portfolio, strong customer relationships and operational efficiencies. Our top priorities remain executing our diversification strategy and continuing to invest in areas that drive long-term value."
(in millions, except per share data
Q2 Fiscal
Q2 Fiscal Q2 Fiscal Q2 Fiscal
and percentages)
2025
2024
Change
2025
2024
Change
Revenues
$10,979
$9,389
+17%
$10,836
$9,386
+15%
Earnings before taxes (EBT)
$3,105
$2,498
+24%
$3,694
$3,175
+16%
Net income
$2,812
$2,326
+21%
$3,172
$2,761
+15%
Diluted earnings per share (EPS)
$2.52
$2.06
+22%
$2.85
$2.44
+17%
(1) Discussion regarding our use of Non-GAAP financial measures and reconciliations between GAAP and Non-GAAP results are included at the end of this news release in the sections labeled "Note Regarding Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP Results to Non-GAAP Results."
Q2 Fiscal
Q2 Fiscal Q2 Fiscal Q2 Fiscal
(in millions, except percentages)
2025
2024
Change
2025
2024
Change
Revenues
$9,469
$8,026
+18%
$1,319
$1,318
-
EBT
$2,857
$2,288
+25%
$929
$933
-
EBT as % of revenues
30%
29%
+1 point
70%
71%
-1 point
(in millions, except percentages)
Q2 Fiscal 2025
Q2 Fiscal 2024
Change
Handsets
$6,929
$6,180
+12%
Automotive
959
603
+59%
IoT (internet of things)
1,581
1,243
+27%
Total QCT revenues $9,469 $8,026 +18%
We disaggregate QCT revenues based on the industries and applications in which our products are sold.
During the second quarter of fiscal 2025, we returned $2.7 billion to stockholders, including $938 million, or $0.85 per share, of cash dividends paid and $1.7 billion through repurchases of 11 million shares of common stock.
The following statements are forward looking, and actual results may differ materially. The "Note Regarding Forward-Looking Statements" in this news release provides a description of certain risks that we face, and our most recent quarterly report on file with the Securities and Exchange Commission (SEC) provides a more complete description of our risks.
The following table summarizes GAAP and Non-GAAP guidance based on the current outlook.
Revenues
$9.9B - $10.7B
Supplemental Revenue Information
QCT revenues
$8.7B - $9.3B
QTL revenues
$1.15B - $1.35B
GAAP diluted EPS
$2.14 - $2.34
Less diluted EPS attributable to QSI
$-
Less diluted EPS attributable to share-based compensation
($0.50)
Less diluted EPS attributable to other items2
$0.04
Non-GAAP diluted EPS
$2.60 - $2.80
Our outlook does not include provisions for proposed tax law changes, future asset impairments or for pending legal matters, other than future legal amounts that are probable and estimable. Further, due to their nature, certain income and expense items, such as certain investments, derivative and foreign currency transaction gains or losses, cannot be accurately forecast. Accordingly, we only include such items in our financial outlook to the extent they are reasonably certain. Our outlook includes the impact of any pending business combinations to the extent they are expected to close in the upcoming quarter. Actual results may differ materially from the outlook.
Our guidance for diluted EPS attributable to other items for the third quarter of fiscal 2025 is primarily related to the requirement to capitalize research and development expenditures under U.S. Federal income tax law, partially offset by acquisition-related items.
Qualcomm's second quarter fiscal 2025 earnings conference call will be broadcast live on April 30, 2025, beginning at 1:45 p.m. Pacific Time (PT) at https://investor.qualcomm.com/news-events/investor-events. This conference call will include a discussion of "Non-GAAP financial measures" as defined in Regulation G. The most directly comparable GAAP financial measures and information reconciling these Non-GAAP financial measures to our financial results prepared in accordance with GAAP, as well as other financial and statistical information to be discussed on the conference call, will be posted to our Investor Relations website at https://investor.qualcomm.comimmediately prior to the commencement of the call. An audio replay will be available on our website and via telephone following the live call for 30 days thereafter. To listen to the replay via telephone, U.S. callers may dial (877)
660-6853 and international callers may dial (201) 612-7415. Callers should use reservation number 13752782.
Our Investor Relations website at https://investor.qualcomm.comcontains a significant amount of information about us, including financial and other information for investors, and it is possible that this information could be deemed to be material information. Accordingly, investors and others interested in Qualcomm should review the information posted on our website in addition to following our press releases, SEC filings and public conference calls and webcasts.
Qualcomm relentlessly innovates to deliver intelligent computing everywhere, helping the world tackle some of its most important challenges. Our proven solutions drive transformation across major industries, and our Snapdragon®branded platforms power extraordinary consumer experiences and our Qualcomm DragonwingTM products empower businesses and industries to scale to new heights. Building on our nearly 40-year leadership in setting industry standards and creating era-defining technology breakthroughs, we deliver leading edge AI, high-performance, low-power computing, and unrivaled connectivity. Together with our ecosystem partners, we enable next-generation digital transformation to enrich lives, improve businesses, and advance societies. At Qualcomm, we are engineering human progress.
Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of our engineering and research and development functions and substantially all of our products and services businesses, including our QCT semiconductor business. Snapdragon and Qualcomm branded products are products of Qualcomm Technologies, Inc. and/or its subsidiaries. Qualcomm patents are licensed by Qualcomm Incorporated.
In addition to the historical information contained herein, this news release contains forward-looking statements that are inherently subject to risks and uncertainties, including but not limited to statements regarding: the macroeconomic and trade environment; our technology roadmap, product portfolio, customer relationships and operational efficiencies; our diversification strategy; and our estimates and guidance related to revenues and earnings per share (EPS). Forward-looking statements are generally identified by words such as "estimates," "guidance," "expects," "anticipates," "intends," "plans," "believes," "seeks" and similar expressions. Actual results may differ materially from those referred to in the forward-looking statements due to a number of important factors, including but not limited to: our dependence on a small number of customers and licensees, and particularly from their sale of premium-tier handset devices; our customers vertically integrating; a significant portion of our business being concentrated in China, which is exacerbated by U.S./China trade and national security tensions; our ability to extend our technologies and products into new and expanded product areas, and industries and applications beyond mobile handsets; our strategic acquisitions, transactions and investments, and our ability to consummate strategic acquisitions; our dependence on a limited number of third-party suppliers; risks associated with the operation and control of our manufacturing facilities; security breaches of our information technology systems, or other misappropriation of our technology, intellectual property or other proprietary or confidential information; our ability to attract and retain qualified employees; the continued and future success of our licensing programs, which requires us to continue to evolve our patent portfolio and to renew or renegotiate license agreements that are expiring; efforts by some OEMs to avoid paying fair and reasonable royalties for the use of our intellectual property, and other attacks on our licensing business model; potential changes in our patent licensing practices, whether due to governmental investigations, legal challenges or otherwise; adverse rulings in governmental investigations or proceedings or other legal proceedings; our customers' and licensees' sales of products and services based on CDMA, OFDMA and other communications technologies, including 5G, and our customers' demand for our products based on these technologies; competition in an environment of rapid technological change, and our ability to adapt to such change and compete effectively; failures in our products or in the products of our customers or licensees, including those resulting from security vulnerabilities, defects or errors; difficulties in enforcing and protecting our intellectual property rights; claims by third parties that we infringe their intellectual property; our use of open source software; the cyclical nature of the semiconductor industry, declines in global, regional or local economic conditions, or our stock price and earnings volatility; geopolitical conflicts, natural disasters, pandemics and other health crises, and other factors outside of our control; our ability to comply with laws, regulations, policies and standards; our indebtedness; and potential tax liabilities. These and other risks are set forth in our Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2025 filed with the SEC. Our reports filed with the SEC are available on our website at https://www.qualcomm.com. We undertake no obligation to update, or continue to provide information with respect to, any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.
QUALCOMM Incorporated
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except par value amounts)
(Unaudited)
March 30,
2025
September 29,
2024
ASSETS
Current assets:
Cash and cash equivalents
$ 7,203
$ 7,849
Marketable securities
6,643
5,451
Accounts receivable, net
3,699
3,929
Inventories
6,196
6,423
Other current assets
2,339
1,579
Total current assets
26,080
25,231
Deferred tax assets
5,750
5,162
Property, plant and equipment, net
4,410
4,665
Goodwill
10,948
10,799
Other intangible assets, net
1,183
1,244
Other assets
7,001
8,053
Total assets
$ 55,372
$ 55,154
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable
$ 2,479
$ 2,584
Payroll and other benefits related liabilities
1,248
1,834
Unearned revenues
232
297
Short-term debt
1,365
1,364
Other current liabilities
4,220
4,425
Total current liabilities
9,544
10,504
Unearned revenues
82
88
Long-term debt
13,258
13,270
Other liabilities
4,760
5,018
Total liabilities
27,644
28,880
Stockholders' equity:
Preferred stock, $0.0001 par value; 8 shares authorized; none outstanding
-
-
Common stock and paid-in capital, $0.0001 par value; 6,000 shares authorized; 1,100 and 1,113 shares issued and outstanding, respectively
-
-
Retained earnings
27,333
25,687
Accumulated other comprehensive income
395
587
Total stockholders' equity
27,728
26,274
Total liabilities and stockholders' equity
$ 55,372
$ 55,154
March 30,
2025
March 24,
2024
March 30,
2025
March 24,
2024
Revenues:
Equipment and services
$ 9,359
$ 7,950
$ 19,301
$ 16,266
Licensing
1,620
1,439
3,348
3,059
Total revenues
10,979
9,389
22,649
19,325
Costs and expenses:
Cost of revenues
4,937
4,106
10,098
8,418
Research and development
2,216
2,236
4,446
4,332
Selling, general and administrative
706
707
1,430
1,335
Other
-
-
-
(28)
Total costs and expenses
7,859
7,049
15,974
14,057
Operating income
3,120
2,340
6,675
5,268
Interest expense
(163)
(172)
(326)
(350)
Investment and other income, net
148
330
391
542
Income from continuing operations before income taxes
3,105
2,498
6,740
5,460
Income tax expense
(293)
(223)
(748)
(373)
Income from continuing operations
2,812
2,275
5,992
5,087
Discontinued operations, net of income taxes
-
51
-
6
Net income
$ 2,812
$ 2,326
$ 5,992
$ 5,093
Basic earnings per share:
Continuing operations
$ 2.55
$ 2.03
$ 5.41
$ 4.55
Discontinued operations
-
0.05
-
0.01
Net income
$ 2.55
$ 2.08
$ 5.41
$ 4.56
Diluted earnings per share:
Continuing operations
$ 2.52
$ 2.02
$ 5.36
$ 4.50
Discontinued operations
-
0.04
-
0.01
Net income
$ 2.52
$ 2.06
$ 5.36
$ 4.51
Shares used in per share calculations:
Basic
1,104
1,117
1,107
1,116
Diluted
1,115
1,130
1,118
1,129
Disclaimer
Qualcomm Inc. published this content on April 30, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2025 at 20:03 UTC.