Qualcomm (QCOM, Financial), a leading mobile chip manufacturer, reported impressive financial results for the first quarter of its fiscal year 2025. Revenue reached $11.669 billion, marking an 18% increase from $9.935 billion in the same period last year. Net profit rose to $3.18 billion, a 15% increase from $2.767 billion. On a non-GAAP basis, adjusted net profit was $3.83 billion, up 24%, with adjusted EPS at $3.41, also a 24% increase.
The revenue exceeded Qualcomm's guidance range, with an 18% growth rate significantly surpassing analysts' expectations of around 10%. Although EPS growth slowed to 24% from the previous quarter, it was still much stronger than the anticipated 8% growth.
During this period, Qualcomm's semiconductor business (QCT), which includes mobile, automotive, and IoT chip products, generated $10.08 billion in revenue, a 20% increase. The technology licensing business (QTL) saw a 5% rise in revenue to $1.54 billion. Mobile business income grew by 13%, automotive by 60%, and IoT, including headsets, by 36%.
Qualcomm forecasts revenue for the quarter ending in March to be between $10.3 billion and $11.2 billion, slightly above analysts' average estimate of $10.35 billion. The technology licensing revenue is expected to range from $1.25 billion to $1.45 billion.
Concerns about stagnant new phone demand over the next year led to a 4% drop in Qualcomm's stock price after hours, closing at $175.86, although it has risen 14% this year. CEO Cristiano Amon mentioned that Qualcomm expects a 10% growth in mobile revenue by 2025, driven by demand for high-end smartphones, particularly in China, and the success of Samsung's latest Galaxy devices.
