Qualcomm Q3 Earnings Exceed Consensus with $2.77 EPS, $10.365B Revenue

Qualcomm reported Q3 adjusted EPS of $2.77, beating the consensus estimate of $2.71. Revenue reached $10.365B, also exceeding expectations. CEO Cristiano Amon highlighted strong growth in automotive and IoT revenues, driven by the company's leadership in AI processing, computing, and advanced connectivity. The results validate Qualcomm's diversification strategy and confidence in achieving long-term revenue targets.

Qualcomm Incorporated (NASDAQ: QCOM) reported its third-quarter (Q3) fiscal 2025 earnings, with adjusted earnings per share (EPS) of $2.77, surpassing the Zacks Consensus Estimate of $2.71 [1]. Revenue reached $10.365 billion, exceeding expectations and marking a 10% year-over-year (YoY) increase. CEO Cristiano Amon highlighted significant growth in automotive and IoT revenues, driven by the company's leadership in AI processing, computing, and advanced connectivity.

The company's diversification strategy is evident in the Q3 results. The QCT segment revenue grew 11% to $8.99 billion, with notable increases in automotive (21%) and IoT (24%) revenues. These high-growth segments now represent approximately 26% of QCT revenue, reducing Qualcomm's historical dependency on smartphone cycles. Profitability metrics also improved, with QCT's EBT margin expanding 3 percentage points to 30% [3].

Qualcomm's strong performance was reflected in its shareholder returns, with $3.8 billion returned through dividends and share repurchases. For the fiscal fourth quarter (Q4) 2025, the company forecasts revenues between $10.3-11.1 billion and non-GAAP EPS of $2.75-2.95. These projections validate the company's confidence in achieving long-term revenue targets.

While Qualcomm's smartphone chip segment revenue from non-Apple customers rose more than 15% this fiscal year, the looming loss of Apple as a modem customer has overshadowed the company's optimistic quarterly forecast. However, the company's strong performance in the automotive and IoT sectors demonstrates its ability to adapt and thrive in diverse markets [2].

In conclusion, Qualcomm's Q3 earnings report underscores the success of its diversification strategy and its confidence in achieving long-term growth. The company's strong performance in the automotive and IoT segments, coupled with its leadership in AI processing and advanced connectivity, positions it well for future success.

References:
[1] https://www.nasdaq.com/articles/qualcomm-qcom-q3-earnings-surpass-estimates
[2] https://www.reuters.com/business/qualcomms-premium-smartphone-chip-reliance-apple-modem-loss-overshadow-upbeat-2025-07-30/
[3] https://www.stocktitan.net/news/QCOM/qualcomm-earnings-release-available-on-company-s-investor-relations-snaw41dgasm9.html