📡 Qualcomm confirms strategic growth!
Qualcomm $QCOM is an American technology company that specializes in the development of semiconductors, software and wireless technologies. It is a global leader in mobile chips and a key player in the development of 5G networks.
The company on Wednesday announced results for its second fiscal quarter 2025 (ended March 30).
The stock responded by falling more than 8%!
📈 Important numbers:
Revenue: USD 11.0 billion, +17% year-on-year (2024: USD 9.4 billion)
EBT (earnings before interest and taxes): USD 3.1 billion (+24%)
Net profit: USD 2.3 billion (+21%)
Diluted EPS: $2.52, +22% vs. $2.06 in Q2 FY2024
Non-GAAP EPS: $2.85 (+15%)
So Qualcomm beat market estimates on all major levels.
🧩 QCT segment - the semiconductor heart of the company:
Qualcomm CDMA Technologiessegment revenue (QCT) increased to $9.47 billion, which is +18 % year-over-year. This growth is built on three pillars:
Mobile devices: $6.93 billion (+12%), despite pressure on the consumer market
Automotive (car chips): USD 959 million (+59 %)the segment with the highest growth rate
Internet of Things (IoT): USD 1.58 billion (+27 %), growing interest in integrating more advanced chips into "smart" devices
🚘 Automotive and IoT together already account for more than 25 % of QCT' s revenues , showing that Qualcomm is successfully reducing its reliance on mobile.
💸 Returning capital to shareholders:
Share buyback: $1.7 billion
Dividends: $938 million
🔁 Total returned to shareholders: $2.7 billion - nearly 25 % of quarterly profit
🔭 Q3 FY2025 Outlook:
Qualcomm projects a relatively conservative outlook:
Revenue: $9.9-10.7 billion
Diluted EPS: $2.14-2.34
Non-GAAP EPS: $2.60-2.80
📉 This outlook was slightly below market expectations, causing the stock to decline despite a very strong current quarter.
🗣️ Management Comments:
CEO Cristiano Amon: "Our top priority is to continue to diversify and invest in areas that deliver long-term value. What looks like optional expansion today will be the core axis of the business tomorrow."
CFO Akash Palkhiwala highlighted the advantage of a diversified global supply chain that allows the company to respond to geopolitical and customs uncertainties without major impact.
Qualcomm thus confirms that it is not just "a smartphone chip company".
Rapid growth in automotive a IoT is a signal of where the company is headed for the decade 2025-2035.
What do you think of Qualcomm's results?
I currently have only $AVGO and $AMD from this sector. I find those much more interesting and better stocks.
I'm just keeping an eye on it, but the results turned out well and the stock is still on my watchlist.
I think the Q report they issued was good, I'm happy as a shareholder and although the price went down, it's simply because the market is very sensitive to uncertainty right now and they were obviously cautious in their outlook as well. But I don't see the company as the problem, I see the current environment as the problem and so long term I trust them.
I don't invest in the company, but I know they get a lot of press and are obviously doing well.
Currently $QCOM is one of the most interesting companies and I will definitely be adding more.