Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Proceeds from Debt (USD, millions)

Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

4dcbbabbcad5cd0ad8c57461007f9cb843ae484e5456cff6873ec210b2271e1f

c20171cdbe7e32932379c917b5861feb45325da2f9f50042abb69431e255330e

China

United States

China (including Hong Kong)

Vietnam

South Korea

Other Foreign

Ireland

Other foreign

Total Revenue

4fcc71639239bb0c02dc793f18ec7438e3c4cdcee5242033645dbeb5782f3c9f

d719abf31d1df8e02577eb5b1036aafdc875195dfd758ed56c37700e2f75b7c6

ff2176e64b0b239120e6c4c10fea17a08b4bc78f76ef35092768b61cbd2f8f90

The jump in Q1 2025 total revenues was driven primarily by **higher equipment and services revenues** in the QCT segment, which saw a **$1.6 billion** increase due to strong performance in handsets, automotive, and IoT products. Additionally, the QTL segment experienced a **$75 million** increase in licensing revenues. The QCT segment's record revenues, with strong growth in handsets (a **13%** increase) and automotive (a **61%** increase), also played a significant role in boosting overall revenues.  **[0000804328-25-000011_qcom-20241229.htm:15]** **[0000804328-25-000010_qcom122924erex991.htm:0]** 

Why did Total Revenues jump in Q1 2025?

The higher **Cost of Revenues in Q1 2025** was primarily driven by **increased equipment and services revenues**, particularly in the **QCT segment**, which saw an additional **$1.6 billion** in revenues compared to Q1 2024. This significant rise in revenue led to higher associated costs. Additionally, a change in the **product mix**—specifically, a lower proportion of high-margin QTL licensing revenues—resulted in a slight decrease in the gross margin percentage, further contributing to the increased costs.  **[0000804328-25-000011_qcom-20241229.htm:15]** 

What drove the higher Cost of Revenues in Q1 2025?

Based on the detailed explanation, Qualcomm’s Q4 2024 income tax numbers actually reflected a substantial net tax benefit—not a positive tax expense. In this quarter, after accounting for factors such as a **$317 million tax benefit from intellectual property transfers**, a **$93 million benefit from the FDII deduction**, a **$73 million foreign currency gain**, and additional adjustments (including repatriation and acquisition-related tax effects), the income tax expense turned into a net benefit of **$(318) million**.  **[0000804328-24-000074_qcom092924erex991.htm:9]** **[0000804328-24-000075_qcom-20240929.htm:146]**  This means that although one report lists a figure of **319.00** (which might reflect a different accounting presentation), the underlying drivers indicate that the tax expense was effectively negative due to these tax benefits.  **[0000804328-24-000075_qcom-20240929.htm:117]** 

Why was Income Tax Expense positive in Q4 2024?

The boost in **Operating Income** for Q1 2025 was primarily driven by **higher revenues** and effective **cost management**. Specifically, revenues increased by **$1,734 million** year-over-year, with the **QCT segment** contributing a significant increase of **$1,661 million** from higher chipset shipments and premium-tier Snapdragon platforms, alongside notable contributions from **IoT** and **automotive** sectors. Additionally, although costs increased, they did so at a pace that allowed the robust revenue growth to outpace them, further supporting the improved operating income performance.  **[0000804328-25-000011_qcom-20241229.htm:15]** **[0000804328-25-000011_qcom-20241229.htm:17]** 

What led to the boost in Operating Income in Q1 2025?

35af68b845e82ea2e7cb5df4cf86043d5cb13c3f84862d03236abec6a3e72527

Cash and cash equivalents (USD, millions)

Marketable securities (USD, millions)

Accounts receivable, net (USD, millions)

Inventories (USD, millions)

Held for sale assets - current (USD, millions)

Other current assets (USD, millions)

Total current assets (USD, millions)

Deferred tax assets (USD, millions)

Property, plant and equipment, net (USD, millions)

Goodwill (USD, millions)

Other intangible assets, net (USD, millions)

Held for sale assets - non-current (USD, millions)

Other assets (USD, millions)

Total assets (USD, millions)

Trade accounts payable (USD, millions)

Payroll and other benefits related liabilities (USD, millions)

Unearned revenues - current (USD, millions)

Short-term debt (USD, millions)

Held for sale liabilities - current (USD, millions)

Other current liabilities (USD, millions)

Total current liabilities (USD, millions)

Unearned revenues - non-current (USD, millions)

Income taxes payable (USD, millions)

Long-term debt (USD, millions)

Held for sale liabilities - non-current (USD, millions)

Other liabilities (USD, millions)

Total liabilities (USD, millions)

Common stock and paid-in capital (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive income (USD, millions)

Total stockholders’ equity (USD, millions)

Total liabilities and stockholders’ equity (USD, millions)

7998b321a619e30541d73e1184c1c2a3f77f9b5c398579a594d9d671c7c8f6a9

9f4ad69ae6efb13e1a12ef047ab5106ec1bc5762dbc68ebc3d9e3247081b2831

Total Revenues (USD, millions)

Equipment and Services Revenues (USD, millions)

Licensing Revenues (USD, millions)

Cost of Revenues (USD, millions)

Research and Development Expenses (USD, millions)

Selling, General and Administrative Expenses (USD, millions)

Other Expenses (USD, millions)

Total Costs and Expenses (USD, millions)

Operating Income (USD, millions)

Interest Expense (USD, millions)

Investment and Other Income, Net (USD, millions)

Income from Continuing Operations Before Income Taxes (USD, millions)

Income Tax Expense (USD, millions)

Income from Continuing Operations (USD, millions)

Discontinued Operations, Net of Income Taxes (USD, millions)

Net Income (USD, millions)

9f509a1527108a27a637dc12d9f68160a77c243111842dd7a6cb1fe67c949b8a

Operating Cash Flow in Q2 2024 was primarily driven by a **substantial increase in net income from continuing operations** as well as **favorable changes in operating assets and liabilities**. In addition to this robust operational performance, factors such as **increased accrued customer incentives, reduced inventory levels due to sales of excess inventory, and higher accounts payable resulting from timing and volume of inventory purchases** contributed to the surge. Although **income taxes and severance payments** had some offsetting impact, their effect was outweighed by the strong positive changes in operating activities.  **[0000804328-24-000039_qcom-20240324.htm:5]** **[0000804328-24-000039_qcom-20240324.htm:25]** **[0000804328-24-000038_qcom032424erex991.htm:5]** 

Why was Operating Cash Flow so high in Q2 2024?

The documents indicate that even though there were operational improvements—such as higher net income and increased accruals in customer incentives and accounts payable—the decline in operating cash flow in Q4 2024 was primarily attributed to **income taxes paid in excess of the provision** (which were driven by factors such as the capitalization and amortization of research and development expenditures and one‐time tax-related adjustments) and **adverse changes in operating assets and liabilities** (for example, an increase in accounts receivable due to higher revenues) that offset those positive factors.  **[0000804328-24-000075_qcom-20240929.htm:90]** **[0000804328-24-000075_qcom-20240929.htm:119]** 

What factors contributed to the decline in Operating Cash Flow in Q4 2024?

af2c2c2f6da498821c31a1a3808a7c2a46412b905aac06bf61db9d5e0ca72c49

The dip in Q2 2023 was driven primarily by substantial financing outflows. Specifically, Qualcomm used **$3,558 million** in financing activities—including **$2,173 million** for stock repurchases, **$1,676 million** for dividend payments, and **$1,446 million** for long-term debt repayment—which, even when offset by proceeds from new long-term debt issuance (**$1,880 million**), led to a significant reduction in cash relative to Q1 2023.  **[0000804328-23-000022_qcom032623erex991.htm:7]** **[0000804328-23-000023_qcom-20230326.htm:3]** **[0000804328-23-000023_qcom-20230326.htm:29]** **[0000804328-23-000023_qcom-20230326.htm:5]** 

What caused the significant dip in cash in Q2 2023?

Qualcomm's cash surge in Q4 2023 was driven primarily by a **strong increase in net cash provided by operating activities** (generating **$11,299 million**, reflecting lower accounts receivable and decreased other assets) and **improvements in investing activities** (including **$1.5 billion** from the sale of the Active Safety business and **$434 million** from the issuance of common stock, which partially offset capital expenditures). Additionally, moderated cash outflows in financing activities contributed to the overall increase, boosting cash and cash equivalents from **$2,773 million** at the end of fiscal 2022 to **$8,450 million** in Q4 2023.  **[0000804328-23-000055_qcom-20230924.htm:89]** 

Why did cash surge in Q4 2023?

The significant drop in **short-term debt** in Q2 2023 was primarily driven by Qualcomm's active management of its debt obligations. The company notably reduced its short-term debt from **$1,945 million** in September 2022 to **$499 million** in March 2023 by repaying **$4,668 million** in short-term debt during the period, even as it borrowed an equal amount. Additionally, the issuance of **$1.9 billion in long-term debt** appears to have played a role in refinancing or replacing some of the short-term obligations.  **[0000804328-23-000022_qcom032623erex991.htm:7]** **[0000804328-23-000023_qcom-20230326.htm:3]** **[0000804328-23-000022_qcom032623erex991.htm:8]** **[0000804328-23-000023_qcom-20230326.htm:5]** **[0000804328-23-000023_qcom-20230326.htm:29]** 

What led to the drop in short-term debt in Q2 2023?

The asset growth in Q1 2024 was primarily driven by several factors. **Marketable securities** increased by **$1,047 million**, boosting the overall asset base. Additionally, **accounts receivable** grew by **$330 million** and **deferred tax assets** increased by **$269 million**. These inflows were partially offset by a **$175 million** decline in **inventories**, but the net effect was a significant rise in total assets.  **[0000804328-24-000015_qcom122423erex991.htm:4]** 

What factors contributed to the asset growth in Q1 2024?

bfc97e50100e0f1d7aeb292ba69e47bb221d8ce5261ee4c7d5dfeb069704e2b6

Qualcomm Inc (QCOM)

Financials