🤖 Qualcomm (QCOM) Q4 FY2025 Earnings — Core Brief Edition

Core-Brief

06 Nov 2025 — 3 min read

Headline: QCOM beat on the quarter with $11.3B revenue and $3.00 non-GAAP EPS, posted record Auto sales (~$1.1B), and guided to record QCT in Q1 while pulling forward its AI data-center revenue ramp to FY27.

🔢 Key Metrics

Non-GAAP revenue (Q4): $11.3B (above high end).
Non-GAAP EPS (Q4): $3.00 (above high end).
QCT revenue (Q4): $9.8B (+9% QoQ); EBT: $2.9B (29.0% margin).
QTL revenue (Q4): $1.4B; EBT margin: 72%.
Handset (QCT, Q4): $7.0B (+14% YoY).
IoT (QCT, Q4): $1.8B (+7% YoY).
Automotive (QCT, Q4): ~$1.1B (+17% YoY; record).

Full-year FY25 (non-GAAP):

Revenue: $44.0B (+13% YoY).
EPS: $12.33 (+18% YoY).
QCT revenue: $38.4B (+16% YoY); QCT Op margin: 30.0% (in line with LT target).
Non-Apple QCT growth: +18% YoY (FY25); ~15% 5-yr CAGR.
Free cash flow: $12.8B; returned nearly 100% via buybacks/dividends.

Tax/GAAP note: New legislation drove a $5.7B non-cash DTA write-down in Q4 (excluded from non-GAAP); go-forward non-GAAP tax rate 13–14%.

🧭 Segment & Strategy Highlights

Handsets: Strength in premium Android (Snapdragon 8 Elite Gen 5). Samsung baseline share modeled at ~75% (S25 was 100%; S26 assumes ~75%).
Automotive: Record quarter; Snapdragon Ride Pilot launched with BMW; validated in 60 countries, extending to 100 in 2026. Expanded Google partnership to bring Gemini agents to the Digital Chassis.
IoT & Edge: Industrial/networking, Wi-Fi 7, 5G FWA, and AI smart glasses momentum. Closed Arduino acquisition (community 30M+), adding Edge-AI dev reach (alongside Edge Impulse & Foundries.io).
PCs (AI PCs): New Snapdragon X2 Elite / Elite Extreme; claims leadership in CPU/GPU/NPU and first 5 GHz CPU for ultra-mobile laptops; ~150 designs expected through 2026.

🤖 Product, Tech, AI / Data Center

Entering AI inference data-center market with AI 200 / AI 250 SoCs, accelerator cards & racks; first customer Humane, targeting 200 MW deployment starting 2026.
Architecture focus: tokens per watt (compute density + power/cost efficiency), positioning beyond traditional GPU/HBM stacks.
Roadmap update slated for 1H26 (perf, memory/compute tech, customers).
Revenue ramp pulled forward: material FY27 (was FY28).

⚠️ Risk & Commercial Notes

Apple: in 3 of 4 models this cycle; mix depends on sell-through; Android premium remains the main growth driver.
Huawei licensing: discussions ongoing; no update.
Seasonality: FQ1–FQ2 typically stronger; FQ3 (June) lower.
Margins: Higher Opex reflects data-center investment.

💰 Balance Sheet & Capital

Record FCF: $12.8B; returned nearly 100% to shareholders in FY25 (buybacks + dividends).
No additional cash/debt figures disclosed in the call.

📈 Guidance / Outlook (Explicit)

Q1 FY26 (Dec qtr):
- Revenue: $11.8–$12.6B.
- Non-GAAP EPS: $3.30–$3.50.
- QTL: $1.4–$1.6B; EBT margin: 74–78%.
- QCT: $10.3–$10.9B; EBT margin: 30–32%.
- Handsets: record QCT handset revenue; low-teens % QoQ growth.
- IoT: sequential decline (seasonality) after Q4 outperformance.
- Auto: flat to slightly up QoQ.
- Non-GAAP Opex: ~$2.45B.
Long-term (Investor Day targets reiterated): On track for FY29: Auto $8B, IoT $14B (total $22B). XR and AI PCs tracking ahead of prior expectations.

✅ Bottom Line

QCOM is executing a premium-mix, capital-light expansion: record Auto, solid Android content growth, and disciplined Opex to seed a differentiated AI inference platform. With Q1 set for records and data-center revenue pulled into FY27, management frames the next 12–18 months around Edge-to-Cloud AI leverage, Auto scale-up, and AI PC ramp.