Qualcomm 2025 Q4 Earnings Revenue Surpasses Estimates Despite Net Loss

Qualcomm (QCOM) reported fiscal 2025 Q4 earnings on Nov 6, 2025, with revenue rising 10% year-over-year to $11.27 billion, exceeding estimates. The company swung to a net loss of $3.12 billion, a 206.7% decline from the prior year, while guidance for Q1 FY2026 projected revenue above analyst expectations.

Revenue

Revenue surged to $11.27 billion in Q4 2025, a 10% increase from $10.24 billion in Q4 2024. The growth was driven by robust performance across key segments: Qualcomm Technologies (QCT) led with $6.96 billion in handset revenue, up 14%, while automotive sales jumped 17% to $1.05 billion. The Internet of Things (IoT) segment contributed $1.81 billion, reflecting 7% year-over-year growth. Licensing revenue, however, declined 7% to $1.41 billion, though it still outperformed forecasts.

Earnings/Net Income

Qualcomm swung to a net loss of $3.12 billion in Q4 2025, a 206.7% deterioration from the $2.92 billion net income in Q4 2024. Earnings per share (EPS) turned negative at -$2.90, a 210.6% decline from $2.62 in the prior year. The loss was primarily attributed to a $5.7 billion non-cash tax charge. The EPS swing to a loss marked a significant downturn, reflecting a sharp deterioration in profitability.

Price Action

The stock price of Qualcomm edged down 2.59% during the latest trading day and 2.29% during the most recent full trading week, but it climbed 4.68% month-to-date.

CEO Commentary

Cristiano Amon, President and CEO, highlighted record QCT revenues, driven by 18% growth in non-Apple QCT sales and 27% combined growth in Automotive and IoT segments. He emphasized strategic expansion into data centers and robotics, underscoring confidence in Qualcomm’s innovation and market positioning.

Guidance

Qualcomm provided Q1 FY2026 revenue guidance of $11.8B–$12.6B, with QCT projected at $10.3B–$10.9B and QTL at $1.4B–$1.6B. Non-GAAP diluted EPS is expected to range between $3.30–$3.50, excluding tax law changes, impairments, and legal matters.

Post-Earnings Price Action Review

Qualcomm’s stock experienced mixed price action post-earnings. While the company exceeded revenue and EPS estimates, the net loss and tax charge weighed on investor sentiment. Shares fell 1.7% in after-hours trading despite strong guidance. Analysts noted that while the QCT and automotive segments showed resilience, the licensing revenue decline and competitive pressures in data centers posed risks. The stock’s 17% year-to-date gain lagged behind broader market and semiconductor peers, reflecting cautious optimism about its AI and automotive strategies.

Additional News

Qualcomm announced AI200 and AI250 accelerator chips for data centers, targeting 2026 and 2027 launches to compete with Nvidia and AMD. The company also unveiled a full-system automated driving solution with BMW, signaling growth in automotive tech. Analysts from BofA raised their price target to $215 but highlighted risks, including Apple’s modem contract expiration and reliance on Chinese smartphone vendors. Despite these challenges, Qualcomm’s diversified revenue streams and AI ambitions position it to capitalize on emerging markets.