Qualcomm (QCOM) delivered a record-setting performance in Q1 2025, posting $11.7 billion in total revenue—up 17% year-over-year—as the company capitalized on robust demand across all major segments. Net income rose to $3.2 billion, marking a 15% YoY increase, while non-GAAP EPS surged to $3.41, up from $2.75 a year ago. The quarter saw a strong operating performance, with operating income reaching $3.56 billion, and the company returned $2.7 billion to shareholders through share repurchases and dividends.

The standout driver was Qualcomm's semiconductor business (QCT), which saw revenues climb 20% to $10.1 billion. Within QCT, handsets contributed $7.57 billion, up 13%, fueled by strong demand for Snapdragon chipsets in premium devices like the Samsung Galaxy S25 and growth among Chinese OEMs. The automotive segment soared 61% to $961 million, its sixth consecutive record quarter, bolstered by digital cockpit design wins and new vehicle launches. IoT revenues also jumped 36% to $1.55 billion, supported by on-device AI capabilities and new product deployments across consumer and industrial markets. QCT’s profitability remained strong, with EBT up 25% to $3.25 billion and margins expanding to 32%.

Licensing (QTL) remained a solid contributor, generating $1.54 billion in revenue, up 5%, and an EBT margin of 75%, buoyed by higher 3G/4G/5G product sales and new long-term agreements with major Chinese OEMs and Transsion. While negotiations with Huawei remain unresolved, no revenue from Huawei is assumed in the guidance.

CEO Cristiano Amon highlighted Qualcomm's momentum in premium smartphones, automotive, and AI-powered IoT, noting that over 80 PC designs featuring Snapdragon are in production or development. The Snapdragon X series is gaining traction in high-end Windows laptops, with Qualcomm targeting $4 billion in PC revenue by 2029. In automotive, new collaborations are expanding Snapdragon’s footprint across digital chassis solutions.

For Q2 FY25, Qualcomm projects non-GAAP revenue between $10.2 and $11.0 billion, and EPS of $2.70 to $2.90. QCT is expected to deliver $8.9–$9.5 billion, with automotive growing ~50% YoY and IoT up ~15% YoY, while QTL is guided to $1.25–$1.45 billion. The company reiterated its long-term goal of $22 billion in non-handset revenues by 2029.

Despite the strong quarter, Qualcomm continues to navigate challenges, including customer concentration in China, legal and regulatory uncertainties, and competitive pressures, particularly from vertically integrated players like Apple. Additionally, cost pressures from advanced semiconductor nodes and market seasonality remain ongoing factors. However, with $14.3 billion in liquidity, stable inventory, and confidence in its strategic direction, Qualcomm enters the remainder of FY25 with solid footing.