QUALCOMM Incorporated (QCOM) Stock: Slightly Drops Despite Record Q4 Revenue and Strong 2026 Outlook

TLDR

• Q4 revenue reached $11.3B, topping the high end of guidance.
• Non-GAAP EPS hit $3.00, beating consensus estimates.
• Record automotive revenue surpassed $1B in the quarter.
• $5.7B non-cash tax charge weighed on GAAP results.
• Stock dropped 3% pre-market despite strong FY2026 outlook.

Qualcomm (QCOM) stock dropped sharply by 2.45% to $175.33.

QUALCOMM Incorporated, QCOM

The chipmaker delivered better-than-expected earnings and revenue but took a significant one-time tax charge.

For the quarter ended September 2025, Qualcomm reported revenue of $11.3 billion, exceeding the high end of guidance, while non-GAAP earnings per share (EPS) came in at $3.00, beating consensus estimates of $2.88.

However, a $5.7 billion non-cash tax charge related to President Trump’s “One Big Beautiful Bill Act” affected GAAP earnings, offsetting some of the quarter’s operational gains. The company noted that this adjustment will reduce future cash tax payments.

Record Automotive and IoT Growth

Qualcomm’s QCT segment, which includes smartphone, IoT, and automotive revenue, posted $9.8 billion, up 9% sequentially. Within that, automotive revenue exceeded $1 billion for the first time, marking a 36% year-over-year surge. IoT revenue climbed 22% annually to $1.8 billion.

The company’s licensing division (QTL) reported $1.4 billion, meeting expectations. Qualcomm also highlighted continued demand for its Snapdragon-powered handsets, which drove a 14% year-over-year increase in handset revenue to $7 billion.

During the quarter, Qualcomm launched its Snapdragon 8 Elite Gen 5 mobile platform, a major leap in AI and GPU performance. It also advanced its Snapdragon Ride Pilot autonomous driving system in partnership with BMW, reinforcing its position in automotive technology.

Expanding into AI and Data Centers

To counter long-term smartphone market saturation and potential customer shifts,  such as Apple’s transition to in-house modems, Qualcomm is expanding into AI-driven infrastructure. The company recently unveiled AI200 and AI250 data center chips, with releases planned in 2026 and 2027.

These chips, along with a rack-scale server product designed to rival Nvidia’s and AMD’s systems, mark Qualcomm’s entry into high-performance computing. The initiative diversifies its revenue base beyond mobile and automotive, positioning the firm for growth in AI and cloud computing.

Outlook and Financial Strength

For fiscal 2025, Qualcomm reported total non-GAAP revenue of $44 billion, up 13% year over year, and record free cash flow of $12.8 billion. The company projects next-quarter revenue between $11.8 billion and $12.6 billion, with expected EPS of $3.30 to $3.50.

Despite strong execution, market concerns about competitive pressure and customer diversification weighed on sentiment.

As of November 5, 2025, Qualcomm shares are up 19% year to date, outperforming the S&P 500’s 15.55% gain, though lagging the index on a five-year basis.

Qualcomm’s challenge now lies in balancing AI investment with steady profit growth, a critical race as the semiconductor landscape evolves.

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