Qualcomm 2025 Q3 Earnings Strong Performance as Net Income Surges 25.2%

Qualcomm (QCOM), ranking 72nd by market capitalization, reported its fiscal 2025 Q3 earnings on July 30th, 2025. Qualcomm exceeded analyst expectations with revenue at $10.37 billion, surpassing the forecast of $10.35 billion. The company reported an adjusted EPS of $2.77, beating the consensus estimate of $2.71. Guidance for the fourth quarter was positive, with projected revenues ranging from $10.3 billion to $11.1 billion, and adjusted EPS expected between $2.75 and $2.95, exceeding Wall Street's targets. Qualcomm's strong earnings showcase its successful diversification strategy.

Revenue

Qualcomm's total revenue rose 10.3% year-over-year to $10.37 billion in Q3 2025. The QCT segment demonstrated robust growth, contributing $8.99 billion to the total revenue, while QTL brought in $1.32 billion. Reconciling items accounted for an additional $54 million. This diverse revenue mix highlights Qualcomm's effective business strategy.

Earnings/Net Income

Qualcomm reported a notable increase in earnings per share (EPS), rising 27.7% to $2.44 in Q3 2025 compared to $1.91 in Q3 2024. Net income also saw significant growth, reaching $2.67 billion, a 25.2% increase from the previous year’s $2.13 billion. The strong EPS performance reflects Qualcomm's strategic expansion efforts.

Price Action

The stock price of Qualcomm edged down 2.42% during the latest trading day, decreased 0.51% over the most recent full trading week, yet managed to increase 0.33% month-to-date.

Post-Earnings Price Action Review

Investors who bought Qualcomm shares on the day of its revenue raise announcement and held them for 30 days have seen an impressive average gain of 20.5% over the past three years. This strategy has consistently outperformed the broader market, as tracked by the S&P 500's average gain of 12.4% in the same timeframe. These results highlight the effectiveness of capturing Qualcomm's earnings momentum, reflecting its strong post-announcement performance. Qualcomm's earnings announcements have provided substantial returns, demonstrating confidence in the strategic approach.

CEO Commentary

"Another quarter of strong growth in QCT Automotive and IoT revenues further validates our diversification strategy and confidence in achieving our long-term revenue targets," said Cristiano Amon, President and CEO of Qualcomm Incorporated. He emphasized the company's leadership in AI processing, high-performance and low-power computing, and advanced connectivity, positioning Qualcomm as the preferred industry platform as AI scales at the edge.

Guidance

Qualcomm's guidance for the fourth quarter of fiscal 2025 indicates expected revenues ranging from $10.3 billion to $11.1 billion, with QCT revenues projected between $9.0 billion and $9.6 billion and QTL revenues estimated at $1.25 billion to $1.45 billion. The company anticipates GAAP diluted EPS of $2.23 to $2.43 and Non-GAAP diluted EPS of $2.75 to $2.95.

Additional News

Qualcomm has recently announced a quarterly cash dividend of $0.89 per share, payable on September 25, 2025, to stockholders of record as of September 4, 2025. This move underscores its commitment to returning value to shareholders. Additionally, the company has been active in strategic acquisitions, most notably acquiring Alphawave Semi in June 2025. Alphawave specializes in high-speed wired connectivity products, enhancing Qualcomm's data center portfolio amid burgeoning AI infrastructure demand. Furthermore, Qualcomm's strategic multiyear agreement with Xiaomi solidifies its position in China and globally, as it continues to navigate dynamics with major industry players like Apple and Samsung.