Qualcomm uses a non-standard fiscal year that ends on the last Sunday of September. FY2025 therefore covers October 2024 through September 2025.
What the Company Does 🚀
Qualcomm develops mobile chipsets, wireless connectivity solutions, and AI-enabled platforms used in smartphones, cars, and IoT devices. Its business runs through two major segments:
- QCT — the chip business powering mobile, automotive, and IoT devices.
- QTL — the licensing business earning royalties on Qualcomm’s wireless patents.
QCT drives hardware growth, while QTL provides high-margin licensing cash flow.
Financial Highlights 💰
- Revenue increased in FY2025, supported by stronger demand in smartphones, automotive, and IoT.
- Operating income improved, helped by higher chipset shipments and royalties.
- Net income declined mainly due to a much higher tax expense.
- Cash flow remained strong, allowing continued share repurchases and dividends.
Key Risks ⚠️
- Customer concentration — a few major smartphone makers represent a large share of revenue.
- Licensing challenges — patent renewals, royalty disputes, and regulatory actions can impact QTL.
- Competitive pressure — rivals in mobile, automotive, and IoT can affect pricing and design wins.
- Geopolitical exposure — significant dependence on China adds trade and regulatory risk.
MD&A Highlights 🧭
- Management reports strong chipset demand in mobile, automotive, and IoT.
- The licensing segment grew as global handset shipments recovered.
- Margins improved thanks to premium product mix.
- Taxes drove the reduction in net income, not operational weakness.
- Outlook depends on smartphone recovery, automotive growth, and ongoing 5G/AI innovation.
Takeaway ✅
Qualcomm’s FY2025 results reflect a company with solid demand, strong cash generation, and expanding opportunities in automotive and AI-enabled devices. While taxes and geopolitical factors influenced results, the company’s dual-engine model—chips plus licensing—continues to provide stability and long-term potential.
💰 Income Statement Summary (FY2025–FY2023)
| Income Statement Summary ($m) | FY2025 | FY2024 | FY2023 |
|---|---|---|---|
| Revenue | 44,284 | 38,962 | 35,820 |
| Cost of Goods Sold | 19,738 | 17,060 | 15,869 |
| Gross Profit | 24,546 | 21,902 | 19,951 |
| SG&A | 3,110 | 2,759 | 2,483 |
| Operating Income | 12,355 | 10,071 | 7,788 |
| Non-Operating Income/Expense (Investment & other income, net) | 972 | 962 | 349 |
| Interest Income/Expense | -664 | -697 | -694 |
| Income Before Tax | 12,663 | 10,336 | 7,443 |
| Income Tax | 7,122 | 226 | 104 |
| Net Income | 5,541 | 10,142 | 7,232 |
| EPS (diluted, $) | 5.0 | 9.0 | 6.4 |
Quick take: FY2025 revenue grew strongly versus FY2024, and operating income reached $12.4b. However, net income fell year over year due to a much higher reported tax expense.
📐 Key Financial Ratios
| Ratio | FY2025 | FY2024 | FY2023 |
|---|---|---|---|
| ROE (%) | 26.1 | 38.6 | 33.5 |
| ROA (%) | 11.1 | 18.4 | 14.2 |
| ROTC (%) | 34.3 | 24.6 | 21.1 |
| ROIC (%) | 23.0 | 35.7 | 29.9 |
| Gross Margin (%) | 55.4 | 56.2 | 55.7 |
| Operating Margin (%) | 27.9 | 25.8 | 21.7 |
| Pretax Margin (%) | 28.6 | 26.5 | 20.8 |
| Net Margin (%) | 12.5 | 26.0 | 20.2 |
| Debt-to-Equity (D/E, %) | 69.8 | 55.7 | 71.3 |
| Net Debt / EBITDA (x) | 0.2 | 0.1 | 0.4 |
| Interest Coverage (x) | 18.6 | 14.4 | 11.2 |
| Current Ratio (%) | 281.6 | 240.2 | 233.3 |
| Quick Ratio (%) | 183.7 | 164.0 | 150.7 |
| Fixed Asset to Long-term Capital (%) | 13.0 | 11.8 | 14.0 |
Quick take: Qualcomm continues to post strong profitability with operating margins near 28% in FY2025. The balance sheet is conservatively levered (net debt/EBITDA around 0.2x) and liquidity remains very comfortable, with a current ratio above 2.8x.
📝 Disclaimer
This article is intended for educational purposes only. It does not constitute financial, investment, or legal advice. All investment decisions involve risks, and readers should conduct their own research or consult with a licensed financial advisor.
👉 Qualcomm (QCOM) FY2025 10-K Analysis (Filed 2025) | Explained for Beginners