Company Overview
Qualcomm reports its fiscal Q4 2025 earnings after today’s market close, and Wall Street is anticipating another strong quarter from the wireless semiconductor leader that’s rapidly evolving beyond its smartphone roots. Analysts expect the company to deliver approximately $2.86 in non-GAAP EPS on $10.77 billion in revenue, representing solid year-over-year growth that would extend Qualcomm’s streak of quarterly beats.
What makes this earnings report particularly compelling is the timing: just days ago, Qualcomm unveiled its AI200 and AI250 accelerator systems for 2026-2027, marking a decisive move into direct competition with Nvidia, AMD, and Broadcom for AI inference workloads. The company also announced a massive partnership with Saudi Arabia-backed HUMAIN to deploy 200 megawatts of AI accelerator cards – a deal that Citi analysts estimate represents $1 billion in sales and $0.25 in EPS for Qualcomm. The company’s transformation story is backed by impressive diversification momentum: automotive revenue hit a record $984 million last quarter (up 21% year-over-year), while IoT jumped 24% to $1.7 billion, demonstrating Qualcomm’s success in reducing dependence on smartphone chips.
Key Technical and Fundamental Drivers
Earnings Catalyst → Reporting After Today’s Close Qualcomm reports fiscal Q4 2025 results after the bell today, with consensus expecting $2.86 EPS on $10.77 billion revenue, and the company has a strong track record of beating estimates.
AI Accelerator Unveiling → $1 Billion Saudi Deal The recent announcement of AI200 and AI250 chips plus the HUMAIN partnership worth an estimated $1 billion in sales signals Qualcomm’s aggressive push into the lucrative AI data center market.
Automotive Momentum → Record $984M Quarter Automotive revenue hit a record $984 million last quarter, up 21% year-over-year, marking the sixth consecutive quarter of record automotive revenue as the company approaches its $22 billion IoT/Auto target by 2029.
Diversification Success → Non-Handset Growth 15%+ Fiscal 2025 marks the second consecutive year of greater than 15% growth in non-Apple QCT revenues, demonstrating successful diversification beyond traditional smartphone dependency.
AI Analyst Bullish → $214 Price Target TipRanks’ AI Analyst assigns an Outperform rating with a $214 price target, representing 24% upside, reflecting solid financials, favorable earnings insights, and strong automotive/IoT growth momentum.
Market Takeaway
Qualcomm’s earnings report today arrives at a pivotal moment in the company’s transformation from smartphone chip supplier to diversified AI semiconductor powerhouse. The recent unveiling of data center AI accelerators represents a fundamental shift in Qualcomm’s addressable market – moving from mobile device chips into the massive and rapidly growing AI infrastructure market where Nvidia currently dominates. While some analysts question whether Qualcomm is “several years behind” AMD and Nvidia in AI, the $1 billion HUMAIN deal and partnerships with major automotive players suggest the company has credible opportunities to capture meaningful share.
The beauty of Qualcomm’s current position is the diversification optionality: even if AI data center revenue takes years to materialize significantly, the company’s automotive and IoT businesses are delivering consistent double-digit growth today, approaching a combined contribution that could soon rival Apple’s modem revenue. With automotive revenue on track to hit $1 billion in Q4 and the company maintaining its $22 billion target for combined automotive and IoT revenues by fiscal 2029, there are multiple paths to sustained growth. Trading at a forward P/E of just 12.8x despite these growth initiatives makes QCOM one of the more reasonably valued semiconductor plays in a sector where peers often command premium multiples. Tonight’s earnings report and management commentary on AI accelerator demand, automotive design wins, and the HUMAIN partnership rollout could provide the catalysts to re-rate the stock higher as investors gain confidence in Qualcomm’s evolution beyond mobile.