Quick Facts / Company Snapshot
- Full Company Name: QUALCOMM Incorporated
- Headquarters: 5775 Morehouse Dr., San Diego, California 92121-1714
- State of Incorporation: Delaware
- Fiscal 2025 Total Revenues: $44.3 billion
- Fiscal 2025 Net Income: $5.5 billion
- Reportable Segments: QCT (Semiconductors), QTL (Licensing), and QSI (Strategic Initiatives)
- Total QCT Revenues: $38.4 billion (87% of total revenue)
- Total QTL Revenues: $5.8 billion (13% of total revenue)
- Handset Revenue: $27.8 billion
- Automotive Revenue: $4.0 billion
- IoT (Internet of Things) Revenue: $6.6 billion
- Market Value of Voting Equity: $167.9 billion (as of March 28, 2025)
- Common Stock Shares Outstanding: 1,071 million (as of November 3, 2025)
- Stock Symbol: QCOM (Nasdaq Global Select Market)
- Founding Year: 1985 (Incorporated in California)
Company Overview
QUALCOMM Incorporated is a global technology leader committed to bringing intelligent computing everywhere. The business focuses on the development and commercialization of foundational technologies that power the modern digital world, including on-device artificial intelligence (AI), high-performance and low-power computing, and advanced wireless connectivity. These technologies serve as the backbone for various industries, spanning from mobile handsets to automotive systems and the internet of things (IoT).
The organization operates through two primary business engines: the QCT semiconductor business and the QTL licensing business. By innovating and collaborating across diverse ecosystems—including manufacturers, operators, developers, and governments—the company enables next-generation digital transformation. For 40 years, it has played a leading role in setting industry standards and creating era-defining technology breakthroughs, particularly in cellular technologies like 4G and 5G.
Important performance highlights for fiscal 2025:
- The company recorded total revenues of $44.3 billion, a 14% increase compared to the previous year.
- QCT revenues grew by 16% year-over-year, reaching $38.4 billion.
- The automotive revenue stream achieved record growth of 36% during the fiscal year.
- IoT revenues saw a significant 22% increase, driven by demand across consumer, industrial, and edge networking applications.
Business Segments and Revenue Breakup %
The company is organized based on its products and services into three reportable segments. Each segment plays a distinct role in the corporate strategy of driving innovation and generating shareholder value.
QCT (Qualcomm CDMA Technologies) – 87% of Total Revenue
QCT is the semiconductor business, focused on developing and supplying integrated circuit platforms and system software. These products feature advanced connectivity and high-performance, low-power computing technologies.
- Handsets: Powers smartphones from entry-level to premium-tier Android devices.
- Automotive: Provides platforms for connectivity, digital cockpits, and advanced driver assistance systems (ADAS/AD).
- IoT: Covers consumer electronics (PCs, XR), edge networking (Wi-Fi, broadband), and industrial applications.
QTL (Qualcomm Technology Licensing) – 13% of Total Revenue
QTL is the licensing division that grants rights to use portions of the company’s vast intellectual property portfolio. This includes patent rights essential to and useful in the manufacture and sale of wireless products, including those implementing 3G, 4G, and 5G standards. Licensing revenues are primarily derived from royalties paid by manufacturers on the sale of wireless devices.
QSI (Qualcomm Strategic Initiatives)
QSI manages strategic investments in early-stage companies and technologies that are expected to open new opportunities for the company’s foundational technologies or support the design and introduction of new products. While QSI focuses on long-term strategic value, its financial contribution to total revenue is not the primary driver of the consolidated topline.
Key segment insights:
- The QCT segment generated $38.4 billion in revenue for fiscal 2025.
- QTL segment revenues reached $5.8 billion during the same period.
- Operating margins for QCT stood at 30% for fiscal 2025.
- QTL maintained a high operating margin of 71% in fiscal 2025.
History and Evolution
The journey began in 1985 when the company was incorporated in California. In 1991, it reincorporated in Delaware, setting the stage for its growth into a global powerhouse. Over four decades, the company has transitioned from a small research group into a leader in wireless technology standards.
Historically, the firm was instrumental in the commercialization of CDMA technology, which became a foundation for 3G cellular networks. As the industry moved toward 4G LTE and now 5G, the company remained at the forefront of innovation. Today, the focus has expanded beyond cellular connectivity to include on-device AI and high-performance computing, positioning the company as a leader in the “intelligent edge” where devices process data locally rather than relying solely on the cloud.
Products and Services with Revenue Breakup %
The product portfolio is centered around highly integrated system-on-chip (SoC) solutions and intellectual property licensing.
Snapdragon® and Dragonwing™ Platforms
These families of system-based solutions are the flagship products. Snapdragon mobile platforms power the world’s leading Android smartphones, while the Dragonwing family serves industrial and edge networking IoT solutions.
- Mobile Platforms (63% of total revenue): Integrated chips including CPUs, GPUs, and NPUs for smartphones.
- Automotive Platforms (9% of total revenue): The Snapdragon® Digital Chassis™ platforms for connected and autonomous vehicles.
- IoT Solutions (15% of total revenue): Chips for PCs, wearables, and industrial robotics.
Licensing Services (13% of total revenue)
The company offers worldwide licenses for its cellular standard-essential patents. These licenses enable other companies to build and sell products using the foundational technologies developed by the company’s engineers.
Detailed product performance:
- Handset revenues within QCT were $27.8 billion in 2025.
- Automotive revenues rose to $4.0 billion, up from $2.9 billion in the prior year.
- IoT revenues reached $6.6 billion, compared to $5.4 billion in fiscal 2024.
Brand Portfolio
The company’s brand is synonymous with premium technology and innovation. The most prominent brand in the portfolio is Snapdragon®, which has become a consumer-facing mark for high-performance mobile, PC, and automotive experiences.
- Snapdragon® Digital Chassis™: Represents the suite of automotive technologies.
- Qualcomm Oryon™: The custom-designed CPU technology delivering next-level performance and efficiency.
- Qualcomm® Adreno™: The graphics processing unit (GPU) brand known for 3D gaming performance.
- Qualcomm® Hexagon™: The neural processing unit (NPU) brand focused on AI inference.
Geographical Presence and Region-wise Revenue %
The business is truly global, with a massive footprint across major tech hubs and manufacturing centers. While the headquarters are in San Diego, California, a vast majority of revenues are generated from customers located outside the United States.
- China (including Hong Kong): This remains the largest market, contributing $27.1 billion (61%) of total revenue in fiscal 2025.
- Vietnam: Contributed $5.9 billion (13%) of total revenue.
- South Korea: Accounted for $3.1 billion (7%) of total revenue.
- United States: Revenue from the home market was $2.5 billion (6%).
- Other Regions: The remaining $5.7 billion (13%) comes from various other international markets.
The company’s physical footprint includes research centers, sales offices, and administrative facilities. Manufacturing is largely outsourced to leading semiconductor foundries, but the company maintains significant internal operations for design and testing globally.
Financial Performance Analysis
Fiscal 2025 was a year of strong growth and strategic expansion. The company successfully navigated a flat smartphone market by gaining share in the premium tier and rapidly growing its automotive and IoT businesses.
- Total Revenue Trend: Increased from $39.0 billion in fiscal 2024 to $44.3 billion in fiscal 2025.
- Earnings Before Tax (EBT): Rose to $12.7 billion in 2025 from $10.3 billion in 2024.
- Net Income: However, net income decreased to $5.5 billion in 2025 from $10.1 billion in 2024, primarily due to a massive one-time income tax provision related to the valuation allowance on deferred tax assets.
Profit and Loss Analysis
The 2025 income statement reflects higher sales volumes and a shift in product mix toward higher-margin segments, offset by significant tax adjustments.
- Total Revenues: $44.3 billion
- Cost of Revenues: $19.6 billion (compared to $17.3 billion in 2024).
- Research and Development (R&D) Expenses: $9.3 billion, representing the company’s commitment to innovation.
- Selling, General, and Administrative (SG&A) Expenses: $2.6 billion.
- Operating Income: $12.8 billion, up from $10.7 billion in the previous year.
- Income Tax Provision: $7.1 billion (an effective tax rate of 56% for 2025).
Key P&L Metrics:
- Gross Margin: Approximately 55.7% in fiscal 2025.
- Operating Margin: Approximately 28.9% in fiscal 2025.
- Diluted Earnings Per Share (EPS): $4.92 for fiscal 2025.
Balance Sheet Analysis
The balance sheet remains robust, characterized by high liquidity and a strong asset base, though impacted by the deferred tax asset valuation allowance.
- Total Assets: $50.4 billion as of September 28, 2025.
- Cash and Cash Equivalents: $8.2 billion.
- Marketable Securities: $5.3 billion.
- Property, Plant, and Equipment (Net): $4.7 billion.
- Goodwill: $11.4 billion.
- Total Liabilities: $35.9 billion.
- Short-term Debt: $1.5 billion.
- Long-term Debt: $14.5 billion.
- Total Stockholders’ Equity: $14.5 billion, down from $21.5 billion in 2024 due to the tax provision impact.
Cash Flow Analysis
Cash flow generation remains a core strength, allowing the company to fund R&D, pay dividends, and repurchase shares.
- Net Cash Provided by Operating Activities: $13.1 billion in fiscal 2025.
- Net Cash Used in Investing Activities: ($4.4 billion), primarily for capital expenditures and acquisitions.
- Net Cash Used in Financing Activities: ($8.6 billion), including dividend payments and share repurchases.
- Free Cash Flow: Calculated as operating cash flow minus capital expenditures, free cash flow was significantly positive, supporting a dividend payout of $3.7 billion.
Management Discussion & Analysis (MD&A)
Management highlights that the company is successfully executing its diversification strategy. While handsets remain the largest revenue driver, the growth in automotive and IoT demonstrates the versatility of the company’s “one technology roadmap.”
The macro environment remains complex. Management noted that while consumer demand for smartphones remained approximately flat in calendar 2025, the demand for 5G handsets saw mid-single-digit percentage growth. The company is leaning heavily into generative AI, believing that for AI to reach its full potential, it must run on-device. This vision is driving the development of new processors capable of handling massive AI workloads with extreme power efficiency.
Management’s strategic priorities include:
- Sustaining leadership in the premium smartphone market.
- Scaling the Snapdragon Digital Chassis into a dominant automotive platform.
- Expanding the PC business with Snapdragon X Series platforms.
- Driving the adoption of on-device AI across all product tiers.
Board of Directors and Leadership Team
The company is led by a diverse board and an experienced executive team.
Executive Leadership:
- Cristiano R. Amon: President and Chief Executive Officer
- Akash Palkhiwala: Chief Financial Officer and Chief Operating Officer
- Patricia Y. Grech: Senior Vice President and Chief Accounting Officer
Board of Directors (Partial List):
- Sylvia Acevedo
- Mark Fields
- Jeffrey W. Henderson
- Jeremy (Zico) Kolter
The board maintains several committees, including the Audit Committee, Governance Committee, and HR and Compensation Committee, to ensure robust corporate oversight.
Subsidiaries, Associates, and Joint Ventures
The company operates through numerous subsidiaries globally to manage its diverse operations.
Key Subsidiaries Include:
- Arriver US, Inc. (Delaware)
- NuVia, Inc. (Delaware)
- Qualcomm Auto Limited (United Kingdom)
- QUALCOMM CDMA Technologies Asia-Pacific Pte. Ltd. (Singapore)
- Qualcomm Global Trading Pte. Ltd. (Singapore)
- QUALCOMM India Private Limited (India)
- Qualcomm Technologies International, Ltd. (United Kingdom)
- RF360 Europe GmbH (Germany)
The company often engages in strategic acquisitions, such as the purchase of technology assets to bolster its R&D capabilities or enter new markets.
Physical Properties
The corporate headquarters are located in San Diego, California, where the company owns several buildings comprising millions of square feet of office and laboratory space.
Comprehensive Property Data:
- Land Value: $168 million.
- Buildings and Improvements: $1.9 billion.
- Machinery and Equipment: $9.4 billion.
- Construction in Progress: $154 million.
- Geographic Spread: Major facilities are located in the United States, China, India, and Germany.
Segment-wise Performance
QCT Performance
QCT saw record revenues in fiscal 2025 due to a 12% increase in handset revenue and a 36% surge in automotive revenue. The segment’s focus on high-performance computing enabled it to capture a larger share of the premium device market.
QTL Performance
QTL revenue was $5.8 billion in 2025, a 10% increase from $5.3 billion in 2024. This growth was driven by higher royalty revenues, reflecting the ongoing transition to 5G and the renewal of key license agreements.
Founders
The company was founded in July 1985 by seven industry veterans. The founding team included Irwin Jacobs, Andrew Viterbi, Harvey White, Adelia Coffman, Andrew Cohen, Klein Gilhousen, and Franklin Antonio. Their collective vision was to create “Quality Communications,” which eventually led to the development of CDMA technology.
Shareholding Pattern
The company’s common stock is widely held by institutional and public investors.
- Holders of Record: 5,564 as of November 3, 2025.
- Shares Outstanding: 1,071 million.
- Major Shareholders: Predominantly large institutional investors, as is common for a Nasdaq-100 and S&P 500 company.
Parent
QUALCOMM Incorporated serves as the parent company for all the global subsidiaries and operating units mentioned in this profile. It is the ultimate registrant and reporting entity for SEC purposes.
Investments and Capital Expenditure Plans
The company continues to invest heavily in its future.
- R&D Investment: $9.3 billion was spent on R&D in fiscal 2025 to maintain a lead in 5G, 6G, and AI.
- Capital Expenditures: $1.5 billion was invested in fiscal 2025 for property, plant, and equipment.
- Strategic Priorities: Focus remains on AI-capable hardware and software, automotive electronics, and expanding the PC ecosystem.
Future Strategy
The “intelligent computing” strategy is the North Star. The company aims to move beyond mobile to become the “processor company for the intelligent edge.”
- 6G Development: Already working with standards bodies like 3GPP to define the requirements for 6G.
- Generative AI: Scaling AI models to run natively on smartphones, PCs, and cars.
- Automotive Leadership: Targeting $8 billion in automotive revenue by fiscal 2026.
Competitive Landscape
The company operates in a highly competitive environment.
- QCT Peers: Competitors include Apple, MediaTek, Samsung, and NVIDIA.
- QTL Peers: Challenges come from other patent holders and companies developing alternative wireless standards.
- Ecosystem Rivalry: Competition also exists from customers who are vertically integrating and developing their own internal silicon solutions.
Key Strengths
- Technology Leadership: A 40-year history of defining wireless standards.
- IP Portfolio: Owns thousands of patents essential to 4G and 5G.
- Diversification: Successful expansion into automotive and IoT.
- Financial Strength: High cash flow and strong operating margins.
Key Challenges and Risks
- Customer Concentration: Three customers each accounted for 10% or more of total revenues in 2025.
- Geopolitical Risks: Significant reliance on the China market (61% of revenue).
- Regulatory Scrutiny: Ongoing monitoring by government agencies regarding licensing practices.
- Vertical Integration: Major customers like Apple developing their own modems.
Conclusion and Strategic Outlook
QUALCOMM Incorporated enters 2026 with a clear roadmap for growth. By leveraging its dominance in mobile to conquer the automotive and PC markets, and by leading the charge in on-device AI, the company is well-positioned to remain at the center of the digital economy. While fiscal 2025 was marked by unusual tax charges, the underlying operating performance demonstrates a business that is growing and diversifying successfully.
FAQ Section:
- What was Qualcomm’s total revenue in fiscal 2025? Qualcomm reported total revenues of $44.3 billion for the fiscal year ended September 28, 2025.
- What are Qualcomm’s main business segments? The company operates through three segments: QCT (Semiconductors), QTL (Licensing), and QSI (Strategic Investments).
- How much does Qualcomm invest in R&D? In fiscal 2025, Qualcomm invested $9.3 billion in Research and Development to drive innovation in AI and wireless connectivity.
- What is the Snapdragon® brand? Snapdragon is Qualcomm’s flagship brand for its mobile, PC, and automotive platforms, delivering high-performance computing and connectivity.
- What percentage of Qualcomm’s revenue comes from China? In fiscal 2025, 61% of Qualcomm’s total revenue, or $27.1 billion, was generated from customers headquartered in China (including Hong Kong).
Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.
