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Qualcomm (QCOM) delivered a clean 4Q25 beat on core non-GAAP metrics - revenue of $11.3 bln and EPS $3.00, both above the high end of guidance - but reported a GAAP loss of $(2.89) per share after taking a $5.7 bln non-cash charge to write down deferred tax assets tied to new U.S. tax legislation. Management said the tax law will reduce future cash tax payments, leaving cash flow and the company’s operational momentum intact. The company also guided for 1Q26 revenue of $11.8-$12.6 bln and EPS $3.30-$3.50, each of which are ahead of expectations at the midpoints, driven by handset launches and strength in QCT.

• QCOM reported Handset revenue growth of +14% yr/yr, accelerating from +7% in Q3, driven by premium-tier Android demand, flagship launches, and higher content share. The company expects low-teens sequential growth into Q1.
• Auto revenue growth was +17% yr/yr, moderating from 21% in Q3 and 59% in Q2, reflecting normalized program ramps after outsized growth earlier in the year.
• The moderation appears to be a normalization following very strong prior comps (FY25 Automotive grew 36% y/y) and the lapping of earlier outsized ramps.
• IoT revenue growth was +7% yr/yr to $1.8 bln, slowing from +24% in Q3. Strength in industrial/networks and smart-glasses AI were offset by consumer seasonality.
• Management expects IoT to be seasonally softer in the next quarter after outperforming in Q4.
• QCOM announced AI200 (2026) and AI250 (2027) data-center inference chips. A third chip is planned for 2028. QCOM's early partner, HUMAIN, is targeting 200MW in 2026. QCOM is positioning around power-efficient inference in a direct challenge to NVIDIA (NVDA) and Advanced Micro Devices (AMD).
• The company plans a roadmap update and more KPI/performance detail in 1H26.

Briefing.com Analyst Insight

QCOM delivered a solid quarter underneath a tax-driven GAAP noise event, with beats on core metrics, upbeat guidance, and momentum in premium handsets. Management’s guidance for 1Q26 (midpoints above consensus) and the continued premium-tier Android momentum suggest near-term upside, while Automotive and IoT remain strategic multi-year growth engines. Auto and IoT growth did slow in Q4 but remain structurally positive and tied to long-cycle design wins. The market’s caution reflects timing risk in handset and auto ramps and the long road to scale in data-center AI, where execution vs. NVDA/AMD will be key. Still, the quarter reinforces QCOM’s premium handset leadership and emerging AI/data-center optionality. In our view, this remains a fundamentally strong story with near-term operational tailwinds and long-term catalysts, despite natural execution risk.