Qualcomm (QCOM, Financial) reported its fiscal 2025 second-quarter results, showcasing a 17% increase in revenue to $10.979 billion, surpassing Wall Street expectations. The net income rose 21% to $2.812 billion, with adjusted net income climbing 15% to $3.172 billion, also exceeding forecasts. Earnings per share (EPS) reached $2.52, up 22% from the previous year, while adjusted EPS was $2.85, beating analyst predictions of $2.82.
Despite strong Q2 performance, Qualcomm's guidance for the third quarter fell short of expectations, leading to a nearly 6% drop in after-hours trading. The company forecasts Q3 revenue between $9.9 billion and $10.7 billion, with EPS ranging from $2.14 to $2.34, below the anticipated $2.82.
Qualcomm's CDMA Technologies Group saw an 18% revenue increase to $9.469 billion, driven by growth in mobile, automotive, and IoT segments. Meanwhile, the Technology Licensing Group's revenue remained stable at $1.319 billion. Operating costs rose to $7.859 billion, while cash flow from operations increased to $7.141 billion.
During the quarter, Qualcomm returned $2.7 billion to shareholders through dividends and stock repurchases. The stock closed at $148.46, up 1.08%, but dropped to $139.75 in after-hours trading.
