Qualcomm last Wednesday, February 5, released information about its financial results for the first quarter of fiscal 2025, which exceeded preliminary expectations.
Revenue for the mentioned company, which is headquartered in San Diego, California, and specializes in the development and manufacture of microcircuits and other electronics, was recorded at the $11.66 billion mark for the fiscal quarter ended December 29, 2024. This indicator showed an increase of 17% year-on-year. The LSEG consensus estimate envisaged that the company’s revenue for the first quarter of fiscal 2025 would be fixed at the $10.93 billion mark.
Adjusted earnings per share was $3.41. The LSEG consensus estimate predicted that this figure would reach $2.96.
The company’s net income for the fiscal quarter ended December 29, 2024, was recorded at the $3.18 billion mark. This indicator increased by 15% year-on-year.
Qualcomm expects its revenue for the second quarter of fiscal 2025 to range from $10.2 billion to $11 billion. The LSEG consensus estimate envisaged that the mentioned figure would be $10.34 billion.
In all three major end markets, the company’s business demonstrated growth in the fiscal quarter ended December 29, 2024. Qualcomm’s QCT unit, which sells physical chips, generated revenue of $10.08 billion over the mentioned period. This indicator showed an increase of 20% year-on-year.
Qualcomm’s sales in the mobile handsets market in the first quarter of fiscal 2025 were recorded at the $7.57 billion mark. This indicator increased by 13% year-on-year.
Qualcomm’s automotive business generated $961 billion in revenue during the mentioned period. This indicator increased by 61% year-on-year. In the relevant context, it is worth noting the positive impact of long-term contracts for the company’s parts and software on financial performance.
Qualcomm chief executive officer Cristiano Amon, during a conversation with media representatives, said that the firm is observing a high level of consumer demand for expensive premium-tier smartphones in China. He also stated that the company benefited from Samsung’s latest Galaxy device using Qualcomm processors exclusively.
The firm’s Internet of Things, or IoT, business generated revenue of $1.54 billion for the fiscal quarter ended December 29, 2024. This indicator increased by 36% year-on-year. It is worth clarifying that the mentioned business of the company includes sales of low-power chips for industrial purposes and microcircuits for Meta to power its Quest headsets and Ray-Ban-branded Meta smart glasses. Also, in this case, sales of Snapdragon Elite chips for Windows laptops are implied. The company said it currently has a 10% share in the market of laptops priced over $800.
It is worth noting that Qualcomm also has a licensing business called QTL. As part of this business, other firms pay the company for access to intellectual property related to 5G and cellular technology. QTL generated revenue of $1.53 billion for the first quarter of fiscal 2025. This indicator increased by 5% year-on-year.
As we have reported earlier, Qualcomm’s New Chips to Bring AI to $600 Personal Computers.
