Q2 2025 Qualcomm Inc Earnings Call Transcript
Key Points
- Qualcomm Inc (QCOM) reported non-GAAP revenues of $10.8 billion and non-GAAP earnings per share of $2.85, both exceeding the midpoint of guidance.
- The chipset business generated $9.5 billion in revenues, driven by strong performance across handsets, automotive, and IoT, with automotive and IoT revenues increasing 59% and 27% year-over-year, respectively.
- The company is making significant strides in AI, with advancements in smaller GenAI models that can run directly on devices, enhancing Qualcomm's opportunities in the AI space.
- Qualcomm Inc (QCOM) is expanding its presence in the automotive sector, securing 30 new designs, including five ADAS programs, and is on track to reach $8 billion in automotive revenues by fiscal '29.
- The company is focused on growing its non-handset revenues to $22 billion by fiscal '29, with strong demand in industrial IoT and strategic acquisitions enhancing its capabilities in this area.
- Licensing business revenues were $1.3 billion, slightly below expectations due to lower handset units in emerging regions.
- There is uncertainty around the impact of the global trade landscape and tariffs on demand across Qualcomm Inc (QCOM)'s businesses.
- The company is experiencing a decline in its share with a major US customer, expecting it to drop to approximately 70% in the upcoming product launch.
- Gross margins in the chipset segment were slightly down due to mix across tiers and segments, impacting profitability.
- Discussions with Huawei regarding royalty revenue remain ongoing with no significant updates, reflecting challenges in negotiations.
Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm second quarter fiscal year 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded, April 30, 2025. Playback number for today's call is (877) 660-6853. International callers, please dial (201) 612-7415. Playback reservation number is 13752782.
I would now like to turn the call over to Mauricio Lopez-Hodoyan, Vice President of Investor Relations. Mr. Lopez-Hodoyan, please go ahead.
Thank you, and good afternoon, everyone. Today's call will include prepared remarks by Cristiano Amon and Akash Palkhiwala. In addition, Alex Rogers will join the question-and-answer session. You can access our earnings release and a slide presentation that accompany this call on our Investor Relations website. In addition, this call is being webcast on Qualcomm.com, and a replay will be available on our website later today.
During the call today, we will use non-GAAP financial
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