What drove QCOM's surprising EPS growth in Q1 2025?

Qualcomm's Q1 2025 EPS growth was driven by several key factors: 1. **Strong Revenue Growth**: The company reported record revenues of $11.67 billion, an 18% increase from the previous year. This growth was driven by healthy demand trends in Android handsets and automotive businesses. Both the Qualcomm CDMA Technologies (QCT) and Qualcomm Technology Licensing (QTL) segments contributed significantly to the revenue growth. 2. **Segment Performance**: The QCT segment, which includes mobile, automotive, and IoT chip products, achieved record revenues of $10.08 billion, a 20% increase year-over-year. The QTL segment also saw a 5% increase in revenue, reaching $1.54 billion. The growth in the QCT segment was particularly notable, driven by rising demand in handsets, IoT, and automotive sectors. The company's automotive and IoT revenues grew impressively by 61% and 36% year-over-year, respectively. 3. **New Product Launches**: Qualcomm's launch of new products, such as the Snapdragon 8 Elite platform, contributed to the growth in demand for its chips. The company's focus on innovation and the introduction of new technologies have positioned it well to capitalize on the growing demand for 5G and IoT solutions. 4. **Market Position and Diversification**: Qualcomm's leadership in the semiconductor industry, particularly in the mobile and automotive sectors, has allowed it to benefit from the growth in these markets. The company's diversification into IoT and other areas has also contributed to its revenue growth. In summary, Qualcomm's EPS growth in Q1 2025 was driven by strong revenue growth across its segments, new product launches, and its strategic market positioning. The company's focus on innovation and diversification have positioned it well to capitalize on the growth in various sectors, including 5G and IoT.