**Qualcomm (QCOM) Reports Strong Q4 2025 Revenue Despite Tax Charge Impacting EPS**
Qualcomm has released its financial results for the fourth quarter of fiscal year 2025, showcasing a solid performance that surpassed Wall Street’s revenue expectations. The company reported quarterly revenue of $11.27 billion, beating analysts’ estimates of $10.77 billion.
However, Qualcomm’s earnings per share (EPS) were significantly impacted by a substantial tax charge. While the reported EPS came in at $3.00 per share—slightly above both analyst and whisper numbers—the inclusion of a massive $6 billion tax charge transforms the EPS into a $2.89 per share loss.
“Our business remains strong as demonstrated by record QCT revenues in fiscal 2025,” said Qualcomm President and CEO Cristiano Amon in the earnings report. “We delivered 18% year-over-year growth in total QCT non-Apple revenues, with combined fiscal year Automotive and IoT revenue growth of 27%. We are excited about our business momentum, the availability of our automated driving stack, and our expansion to data centers and advanced robotics.”
**Impact of New Tax Legislation**
Qualcomm’s report also highlighted the effects of recent U.S. tax legislation known as the One Big Beautiful Bill Act. Despite maintaining an expected effective tax rate of 13% to 14% and anticipating lower cash tax payments going forward, the new law triggered a significant non-cash charge.
According to the report, a non-cash $5.7 billion charge—or $5.29 per share—was recorded in Q4 of fiscal 2025 to establish a valuation allowance against the company’s U.S. federal deferred tax assets. This charge stems from the expectation that Qualcomm will be subject to the U.S. corporate alternative minimum tax starting in fiscal 2026. While this tax charge affected Qualcomm’s GAAP results, it was excluded from the company’s Non-GAAP metrics.
**Technological Advancements and Future Outlook**
Qualcomm is also emphasizing progress across multiple sectors, including artificial intelligence, gaming, and mobile performance. Key hardware innovations mentioned in the report include the Snapdragon 8 Elite Gen 5 mobile CPU chip, the Snapdragon X2 Elite Extreme CPU chip, and the AI-enabled Snapdragon Ride Pilot Automated Driving System.
Looking ahead, Qualcomm plans to showcase more of its product portfolio at the upcoming Consumer Electronics Show (CES) in January.
**Market Reaction**
On the trading day following the earnings release, Wednesday, November 5, Qualcomm’s stock closed up $6.88 per share. However, in after-hours trading, the stock dipped by more than $4.00 per share.
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*Stay tuned for more updates as Qualcomm continues to navigate the evolving tech landscape and faces new challenges and opportunities in the coming quarters.*
https://www.shacknews.com/article/146695/qualcomm-qcom-q4-2025-earnings-report
