Qualcomm announced its fiscal third-quarter 2025 results with GAAP revenues reaching $10.36 billion, an increase from $9.39 billion in the prior year quarter. However, this figure fell short of the consensus estimate of $10.42 billion. Net income on a GAAP basis improved to $2.04 billion. The company registered record automotive revenues, bolstered by a 21% increase and the adoption of its Snapdragon Digital Chassis platform across new vehicle launches. Strength in handset and industrial IoT businesses also contributed to the top line.
Qualcomm's Qualcomm CDMA Technologies (QCT) segment reported revenues of $8.99 billion, up from $8.07 billion a year ago. This growth was attributed to strong automotive performance, higher demand in handsets (which saw a 7% jump to $6.33 billion due to premium Android phones with the Snapdragon 8 Elite platform), and a 24% increase in IoT revenues to $1.92 billion. QCT's EBT margin also improved to 30% from 27%. The Qualcomm Technology Licensing (QTL) division, which is known for its extensive licensing portfolio, generated revenues totaling $1.34 billion, with its EBT margin improving to 71%.
For the fourth quarter of fiscal 2025, Qualcomm provided guidance expecting GAAP revenues between $10.3 billion and $11.1 billion due to strong demand. Non-GAAP earnings are projected to be between $2.75 and $2.95 per share, while GAAP earnings are anticipated to be $2.23-$2.43 per share. QTL revenues are expected to be between $1.25 billion and $1.45 billion, and QCT revenues between $9 billion and $9.6 billion, with handset revenues seeing a 5% sequential growth while IoT and automotive revenues remain relatively flat sequentially. Despite strong performance in key segments, Qualcomm's shares dipped by 4% following the earnings release, partly due to concerns about its multi-year revenue growth outlook and the impending loss of Apple as a modem customer.
In terms of liquidity, Qualcomm generated $10.02 billion of net cash from operating activities in the first nine months of fiscal 2025. As of June 29, 2025, the company held $5.45 billion in cash and cash equivalents and $14.79 billion in long-term debt. During the quarter, Qualcomm repurchased 19 million shares for $2.8 billion. Analyst opinions vary, with some expressing concerns over constrained revenue growth in fiscal years 2026 and 2027 due to Apple's transition to in-house modems, though diversification into automotive, IoT, and data centers is seen as bolstering long-term growth opportunities.
