Qualcomm Posts Strong Outlook for Q4 Despite Tax Headwinds

Qualcomm Incorporated reported robust financial results for the third quarter of fiscal 2025, surpassing Wall Street expectations with revenue reaching $11.27 billion, a 10% year-on-year increase, and adjusted earnings per share of $3.00, beating forecasts. The company’s solid performance was driven by strong demand for its Snapdragon-powered devices, automotive technologies, and expansion into AI data center solutions.

Despite these positive results, Qualcomm anticipates a tax-related charge in the fourth quarter, which is expected to impact net income. Even with the looming tax hit, Qualcomm provided an upbeat outlook for the next quarter, projecting revenue of $12.2 billion and adjusted earnings per share of $3.40, both surpassing analysts’ expectations.

Key growth drivers include continued expansion in automotive and Internet of Things (IoT) segments, with the company recording over $1 billion in automotive revenue for the first time. The launch of Snapdragon 8 Elite Gen 5 and the expansion of its AI and connectivity platforms further position Qualcomm for sustained innovation and market leadership.

CEO Cristiano Amon expressed confidence in Qualcomm’s diversified strategy and innovation pipeline, emphasizing the company’s commitment to powering next-generation AI, mobile, and connected technologies despite near-term macroeconomic challenges.

In summary, Qualcomm’s strong Q3 financial performance and rising revenue guidance signal resilience and growth potential, underscoring its role as a key player in semiconductor innovation amid anticipated tax expenses.