Executive Summary

Q4 FY25 delivered solid non‑GAAP results above guidance and consensus: revenue $11.27B and non‑GAAP EPS $3.00, driven by premium Android handsets, record automotive revenue >$1B, and resilient IoT; GAAP EPS was a loss due to a non‑cash $5.7B tax charge from new U.S. legislation . Versus S&P Global consensus, QCOM beat by ~$0.51B on revenue and ~$0.13 on EPS (26/28 ests). [GetEstimates Q4 2025]
Segment performance was strong: QCT revenue +13% y/y to $9.82B (EBT margin 29%), QTL revenue $1.41B (EBT margin 72%); QCT streams saw Handsets +14% y/y to $6.96B, Automotive +17% to $1.05B, IoT +7% to $1.81B .
FY25 non‑GAAP revenue rose 13% to $44.14B and non‑GAAP EPS 18% to $12.03; management highlighted 18% growth in QCT non‑Apple revenue and combined Automotive+IoT up 27% for the year .
Outlook: Q1 FY26 guidance calls for record revenue $11.8B–$12.6B and non‑GAAP EPS $3.30–$3.50; QCT $10.3B–$10.9B (30–32% EBT margin), QTL $1.4B–$1.6B (74–78% EBT margin) .
Strategic catalysts: accelerating edge AI (premium Android momentum, AI PCs), record auto revenues and first L2+ RidePilot deployment with BMW, and a pulled‑forward AI data center revenue timeline to FY27 (Humane 200MW deployment targeted 2026) .

What Went Well and What Went Wrong

What Went Well
- Premium Android outperformance: QCT Handsets +14% y/y in Q4 on Snapdragon 8 Elite Gen 5 strength; “all three QCT revenue streams exceeded our expectations” (CEO) .
- Automotive momentum: record quarterly revenue >$1B in Q4 (+17% y/y), launch of Snapdragon RidePilot with BMW iX3; management expects continued growth as more vehicles launch .
- Non‑Apple growth and diversification: FY25 non‑GAAP revenue +13% to $44.14B; QCT non‑Apple +18% y/y, combined Auto+IoT +27% y/y; management reiterated progress toward 2029 targets .
What Went Wrong
- GAAP loss from tax legislation: OBBB drove a non‑cash $5.7B charge (valuation allowance on U.S. deferred tax assets), pushing Q4 GAAP EPS to ($2.89); excluded from non‑GAAP .
- QTL softness: QTL revenue fell 7% y/y in Q4 to $1.41B; EBT margin declined 2 pts y/y to 72% .
- Elevated OpEx for new vectors: Q&A pointed to increased investment for data center initiatives impacting year‑over‑year margin mix in QCT despite strong revenue growth .

Financial Results

Overall results vs prior year/quarter (non‑GAAP unless noted; columns oldest→newest)

Metric	Q4 2024	Q3 2025	Q4 2025
Revenue ($B)	$10.244	$10.4	$11.270
EPS (non‑GAAP)	$2.69	$2.77	$3.00
GAAP EPS	$2.59	N/A	($2.89) (OBBB non‑cash charge)
EBT margin (non‑GAAP, company)	34%	N/A	34%

Segment breakdown

Segment	Metric	Q4 2024	Q3 2025	Q4 2025
QCT	Revenue ($B)	$8.678	$9.0	$9.821
	EBT ($B)	$2.465	$2.7	$2.896
	EBT margin	28%	30%	29%
QTL	Revenue ($B)	$1.521	$1.3	$1.409
	EBT ($B)	$1.120	N/A	$1.015
	EBT margin	74%	71%	72%

QCT revenue streams (KPI detail)

QCT Stream	Q4 2024 ($B)	Q3 2025 ($B)	Q4 2025 ($B)
Handsets	$6.096	$6.3	$6.961
Automotive	$0.899	$0.984	$1.053
IoT	$1.683	$1.7	$1.807
Total QCT	$8.678	$9.0	$9.821

Consensus vs actual (S&P Global)

Metric	Q4 2025 Consensus	Q4 2025 Actual
Revenue ($B)	$10.757*	$11.270
EPS (non‑GAAP)	$2.87*	$3.00
# of ests (Rev / EPS)	28 / 26*	—

Values retrieved from S&P Global.*

Balance sheet and cash flow highlights (FY end)

Cash & equivalents $5.52B; marketable securities $4.64B; inventories $6.53B; total assets $50.14B .
Long‑term debt $14.81B; equity $21.21B .
FY25 operating cash flow $14.01B; FY25 capex $1.19B .
Return of capital: Q4 repurchase $2.44B and dividend $0.89/sh ($0.96B) = $3.40B; FY25 total $12.60B . Quarterly dividend declared: $0.89 payable Dec 18, 2025 .

Non‑GAAP reconciliation and adjustments

Q4 non‑GAAP net income $3.257B and EPS $3.00; major exclusions include share‑based comp ($0.44/share) and “other items” ($5.45/share), notably the $5.7B tax charge tied to OBBB .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($B)	Q1 FY26	N/A	$11.8–$12.6	New
QCT Revenue ($B)	Q1 FY26	N/A	$10.3–$10.9	New
QTL Revenue ($B)	Q1 FY26	N/A	$1.4–$1.6	New
GAAP diluted EPS	Q1 FY26	N/A	$2.55–$2.75	New
Non‑GAAP diluted EPS	Q1 FY26	N/A	$3.30–$3.50	New
QCT EBT margin	Q1 FY26	N/A	30%–32%	New
QTL EBT margin	Q1 FY26	N/A	74%–78%	New
Non‑GAAP OpEx ($B)	Q1 FY26	N/A	~2.45	New
Effective tax rate (non‑GAAP)	Forward	N/A	13%–14% go‑forward; lower cash taxes expected	New
Dividend	Next payment	Prior $0.89	$0.89, payable Dec 18, 2025	Maintained

Note: No prior formal Q1 FY26 guidance was issued; “Previous Guidance” shown as N/A.

Earnings Call Themes & Trends

Topic	Previous Mentions (Q‑2 and Q‑1)	Current Period (Q4 FY25)	Trend
AI data center strategy	Building AI inference accelerators and Orion CPU solutions; advanced talks with a hyperscaler; revenue contribution previously guided to FY28 . Q2 also highlighted AlphaWave acquisition to accelerate roadmap .	Pulled forward timeline: now “material” revenue in FY27; first customer Humane with 200MW deployment targeted 2026; KPIs/roadmap to be detailed 1H26 .	Accelerating; visibility improving
Premium Android handsets	Q2/Q3: strong mix shift to premium, Android growth +7–10% y/y; Snapdragon 8 Elite traction; subsidies supporting China premium mix .	Q4: Handsets +14% y/y to $6.96B; multiple China OEM launches; sequential low‑teens handset growth guided for Q1 .	Strengthening
Samsung/Apple share dynamics	Baseline Samsung share at ~75%; Apple share lower in fall 2025 launches; normal seasonal patterns .	Reiterated Samsung baseline 75% (S25 at 100%; S26 assumes 75%); Apple in 3 of 4 models; growth primarily Android .	Stable expectations
Automotive (Digital Chassis/ADAS)	Q3 record ~$984M; BMW Neue Klasse ADAS launch pending; expanding programs .	Q4 record >$1B; RidePilot (L2+) launched with BMW iX3; guide flat to slightly up in Q1; pipeline strengthening .	Up and to the right
IoT and XR/smart glasses	Q2/Q3: strong industrial/networking; Meta smart glasses demand; 19–30 designs across partners .	Q4 IoT +7% y/y; strong AI smart glasses demand; Arduino acquisition to scale edge AI developer base (~30M users) .	Sustained growth; ecosystem buildout
Tariffs/macro/supply chain	Q2: tariff impact minimal; diversified supply chain; monitoring macro .	Q4: Focus shifted to tax law (OBBB) and its non‑cash GAAP impact; no new macro headwinds highlighted .	Macro steady; tax regime shift
Licensing/regulatory	Huawei license negotiations ongoing; no updates (Q2) .	No substantive update; discussions continue (Q4 Q&A) .	Unchanged

Management Commentary

“Our business remains strong as demonstrated by record QCT revenues in fiscal 2025… We delivered 18% year‑over‑year growth in total QCT non‑Apple revenues, with combined fiscal year Automotive and IoT revenue growth of 27%.” — Cristiano Amon, CEO (press release) .
“In Fiscal Q4, we delivered another strong quarter with revenues of $11.3 billion and non‑GAAP earnings per share of $3… all three QCT revenue streams exceeded our expectations, including record automotive quarterly revenues in excess of $1 billion.” — CEO (prepared remarks) .
“With the enactment of [OBBB], we now expect our effective tax rate to generally remain in the 13% to 14% range… this new tax legislation resulted in a non‑cash $5.7 billion charge… in the fourth quarter of fiscal 2025.” — Company statement (press release) .
“We are incredibly pleased with our execution… non‑GAAP revenues of $44 billion and EPS of $12.03… record free cash flow of $12.8 billion, and… returned nearly 100% to stockholders.” — Akash Palkhiwala, CFO/COO .

Q&A Highlights

Data center timing and scale: Management now expects data center to become “material” in FY27 (pulled forward from FY28) with initial customer Humane targeting 200MW in 2026; broader hyperscaler engagement details to come in 1H26 roadmap update .
Handset dynamics: Growth driven primarily by premium Android; Apple contribution present but secondary. For Samsung, baseline planning assumption remains ~75% share (S25 at 100%; assume 75% for S26) .
Segment seasonality/guidance color: QCT Handsets guided to low‑teens sequential growth in Q1; IoT expected to decline sequentially on seasonality after Q4 outperformance; Automotive flat to slightly up q/q .
Margins and investment: Year‑over‑year margin mix reflects incremental investment in data center initiatives as they build new growth vectors .
Licensing: No substantive update on Huawei licensing discussions; ongoing .

Estimates Context

Q4 FY25 results beat S&P Global consensus on both metrics: revenue $11.27B vs $10.76B*, and non‑GAAP EPS $3.00 vs $2.87*; 28 revenue and 26 EPS estimates contributed*. Management also exceeded the high end of its prior internal guidance [GetEstimates Q4 2025]*.
Given stronger‑than‑expected premium Android demand, record Automotive, and resilient IoT, upward revisions are likely for near‑term QCT revenue/margins and consolidated EPS; Q1 FY26 guidance brackets suggest potential for estimate lifts if Android flagship sell‑through sustains .