QCOM Earning Date, Transcript Summary & Report

Strong Revenue and EPS Performance: Record revenues of $11.7 billion and non-GAAP EPS of $3.41, exceeding guidance expectations.

Record Chipset Revenue: QCT achieved record revenues of $10.1 billion, marking the first $10 billion quarter for the chipset business, driven by strong demand in handsets and automotive sectors.

Automotive Revenue Surge: Automotive revenues grew 61% year over year, reaching $961 million, reflecting continued content increase in new vehicle launches.

IoT Revenue Surge: IoT revenues increased by 36% year over year to $1.5 billion, driven by new product launches and strong demand for on-device AI capabilities.

Shareholder Returns Strategy: Returned $2.7 billion to shareholders, including $1.8 billion in stock repurchases and $942 million in dividends, demonstrating strong capital management.

Flat Revenue Guidance: QTL guidance for fiscal 2025 indicates flat revenues year-over-year, suggesting a lack of growth potential in the licensing segment, which may be impacted by ongoing negotiations with Huawei.

Q2 2025 Revenue Forecast: Forecast for Q2 2025 non-GAAP revenues is projected between $10.2 billion to $11 billion, indicating a sequential decline from Q1 2025, primarily due to expected seasonality in handset shipments.

Operating Expenses Outlook: Operating expenses for Q2 2025 are estimated at approximately $2.25 billion, which could pressure margins if revenue growth does not meet expectations.

Smartphone Market Volatility: Despite record revenues in Q1 2025, the forecasted decline in QCT handset revenues for Q2 2025 highlights potential volatility in the smartphone market, particularly with the absence of flagship launches.

Handset Revenue Growth Outlook: The anticipated 10% year-over-year growth in QCT handset revenues for Q2 2025 is significantly lower than the 13% growth achieved in Q1 2025, indicating a potential slowdown in momentum.