📊 Certainty in the chip world!
In the third fiscal quarter 2025 Qualcomm $QCOM reaffirmed why it is one of the technology leaders in the semiconductor world. The company's results exceeded expectations and show that the company is playfully managing the volatile environment as well as actively building space for future expansion.
💰 The numbers speak clearly:
Revenues: $10.37 billion (+10% YoY)
GAAP net income: $2.67 billion (+25% YoY)
Non-GAAP profit: USD 3.04 billion (+15%)
GAAP EPS: $2.43 (+29%), Non-GAAP EPS: $2.77 (+19%)
📌 QCTsegment (Chips & Solutions) remains the core of the business - contributing USD 8.99 billion (+11 %), with double-digit growth mainly driven by:
Internet of Things (IoT): +24% to USD 1.68 billion
Automotive: a new record of $984m. USD 984 MILLION (+21%)
💡 QTLLicensing Division (technology patents) added USD 1.32 billion (+4 %).The QCT segment's overall EBIT margin increased to 30 % (+3 bps), which is an excellent signal for efficiency and profitability.
📦 Smart glasses and personal AI as the new engine
Strong demand for Meta Ray-Bansmart glasses chips. Qualcomm is benefiting from a strategic collaboration with Meta and is behind the birth of the so-called "personal AI"computing power running on the device, not in the cloud.
Both CEO Cristiano Amon and CFO Akash Palkhiwala noted that growth outside Apple is accelerating. In addition, Qualcomm is expanding into AI chips for data centres and is in talks with one of the biggest technology leaders (likely Amazon, Microsoft or Google). The first revenues from this segment could come as early as fiscal year 2028.
🚘 Automotive as a long-term bet
While the growth of the automotive segment (+21 %) has lagged slightly behind IoT, the company's senior executives identify it as one of the company's biggest opportunities. The automotive industry's shift to chip-based solutions, infotainment and autonomy will require more and more computing capacity in the coming years, which Qualcomm is poised to deliver.
📈 Return to shareholders:
Buyback: $2.8 billion (19 million shares)
Dividends: $967 million. USD
So a total of USD 3.8 billion back into the hands of investors in one quarter.
The outlook for Q4 2025 remains strong:
Revenue: USD 10.3-11.1 billion
Non-GAAP EPS: USD 2.75-2.95
QCT segment: USD 9.0-9.6 billion
QTL: USD 1.25-1.45 billion
Qualcomm is gradually evolving from a smartphone chipmaker to a comprehensive supplier of advanced chips for various industries.
What do you think of Qualcomm?
I also like the company, but I started it late, somewhere around $140, so it's not doing much for me in my portfolio yet, but I also expect growth, although there are a lot of those pivot companies in the market. The numbers were nice, but they still went more down after the results because the uncertainty around the tariffs is clear.
I have more$AMD in my portfolio, but while I expect the numbers to be good this week too, I think the price rise will be stopped by tariffs again.
From this sector, I am mainly invested in $AMD and $GOOG. $QCOM did not interest me that much.
The results look good and the award is still interesting too. You have their stock in your portfolio?