Qualcomm posted better-than-expected fiscal Q1 results, with strong revenue growth across its key markets. The company reported $3.41 in adjusted earnings per share, surpassing the expected $2.96, while revenue reached $11.67 billion, exceeding projections of $10.93 billion. This marks an 18% increase from the previous year’s $9.92 billion.
For the current quarter ending in March, Qualcomm expects revenue between $10.2 billion and $11 billion, with adjusted earnings per share projected between $2.70 and $2.90. The midpoint of these estimates surpasses Wall Street’s forecast of $2.69 per share. Net income for the quarter rose 15% to $3.18 billion from $2.77 billion in the prior year.
All major business divisions experienced substantial growth. The QCT division, which encompasses chip sales, increased 20% to $10.1 billion. The mobile handset segment, Qualcomm’s largest market, saw 13% year-over-year growth, reaching $7.57 billion, far exceeding analysts’ expectations of $7.04 billion. The automotive sector was the fastest-growing, surging 61% to $961 million, as long-term contracts translated into revenue.
Demand for premium-tier smartphones in China contributed to the company’s strong performance. Qualcomm’s processors were also used exclusively in Samsung’s latest Galaxy devices, further boosting revenues. The company anticipates 10% growth in handset revenues for 2025.
CEO Cristiano Amon highlighted the impact of AI advancements, particularly the release of DeepSeek R1, which runs efficiently on Qualcomm chips without relying on cloud computing. Qualcomm’s Internet of Things (IoT) division, which includes industrial chips and processors for Meta’s smart glasses and Quest headsets, reported 36% growth, generating $1.55 billion in revenue. Amon remains optimistic about smart glasses adoption, noting that the Snapdragon-powered Ray-Ban Meta glasses continue to exceed expectations.
The company’s licensing division (QTL), which grants access to Qualcomm’s 5G and cellular technology patents, generated $1.54 billion in revenue. Notably, Qualcomm finalized long-term 4G licensing agreements with several Chinese smartphone manufacturers, including Transsion.
During the quarter, Qualcomm returned value to shareholders by paying $942 million in dividends and spending $1.8 billion on share repurchases. With positive guidance for 2025, Qualcomm remains well-positioned for continued growth in mobile, automotive, AI, and IoT markets.
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