Qualcomm Reports Mixed Q4 Results, Faces Apple Loss and AI Opportunities

San Diego, California — Qualcomm Incorporated reported mixed fiscal fourth-quarter results on Wednesday that exceeded analyst predictions for revenue and earnings per share. The company reported revenue of $11.27 billion, a 10% increase from $10.24 billion a year ago, compared to the average estimate of $10.77 billion from analysts polled by LSEG.

Despite the revenue uptick, Qualcomm experienced a net loss of $3.12 billion, or $2.89 per share. This loss came about due to a $5.7 billion non-cash tax charge linked to recent U.S. tax legislation. In the same quarter a year earlier, Qualcomm had a net income of $2.92 billion, or $2.59 per share.

For the upcoming fiscal first quarter, Qualcomm forecasts revenue between $11.8 billion and $12.6 billion, averaging $12.2 billion, which surpasses analyst expectations of $11.62 billion. The company also projects adjusted earnings per share to be between $3.30 and $3.50, slightly above the expected $3.31.

Qualcomm has been a key provider of mobile phone chips, servicing high-end devices such as those produced by Samsung and modems for iPhones. However, the company anticipates losing Apple as a customer for its modem business in the coming years. To mitigate this impact, Qualcomm is diversifying its efforts into automotive, Windows PCs, and virtual-reality devices.

Furthermore, Qualcomm sees significant potential in the artificial intelligence sector. Recently, the company announced its plans to release new AI accelerator chips in the upcoming years. These chips are expected to improve computational capabilities in server environments.

In terms of segment performance, Qualcomm’s handsets business saw revenue grow by 14% to $6.96 billion, while its automotive revenue surged by 17% to $1.05 billion. The Internet of Things (IoT) division, despite a slight dip in the licensing business revenue, reported $1.81 billion, up 7% from the previous year. Overall, the handsets, automotive, and IoT segments all exceeded analyst expectations.

CEO Cristiano Amon remarked, “Our business remains strong as demonstrated by record QCT revenues in fiscal 2025,” pointing to an 18% year-over-year growth in total non-Apple revenues in the QCT segment. As Qualcomm prepares for the December quarter, it emphasizes the strategic importance of its expansion into new markets amid slow global smartphone demand.