Qualcomm Financial Report is better than market expectations, and has stopped supplying Apple-based chips and stock prices after impacting the market

chip manufacturer Qualcomm announced its third quarter financial report for 2025. Despite the market fluctuations, Qualcomm's revenue and EPS both slightly exceeded market analyst expectations, showing the sustainability of the multi-specialized business sector. However, after the financial report was announced, trading after Qualcomm's stock price declined.

Qualcomm's total revenue in the third quarter of 2025 financial year reached US$10.37 billion, slightly higher than the market analyst's expected US$10.35 billion. On the EPS side, it was adjusted to $2.77, which was slightly higher than the market's generally expected $2.71. The smartphone chip business remains Qualcomm's most important source of revenue, with a single-quarter mobile chip business revenue of US$6.33 billion, which is slightly lower than the expected US$6.44 billion on Huaer Street, but it still maintains a considerable scale.

Outlook In the fourth quarter of 2025, Qualcomm predicted that after adjustment, EPS will be $2.85 and earned $10.7 billion. This expectation exceeded market analyst expectations of $2.83 and earned $10.35 billion.

Qualcomm Executive Director Cristiano Amon Financial Conference emphasized that the strategic layout of Qualcomm's artificial intelligence (AI) domain, especially in-depth cooperation with Meta, is to embrace personal AI, that is, AI applications running on equipment rather than clouds. Meta's Facebook AI lens uses Qualcomm's technology and has a strong market performance. Qualcomm's Internet of Things (IoT) department has received US$1.68 billion, and its growth mainly comes from products such as smart lenses.

Although Qualcomm is still providing base frequency chip products for Apple, it expects to lose Apple's customer in the next few years. To this end, Qualcomm has been committed to diversifying its business, including making chips for Windows PCs and other devices. Cristiano Amon said that after Qualcomm eliminates Apple's business, its chip business will still achieve an annual growth of about 15%. Among them, in addition to existing mobile phones, VR/AR and Internet businesses, Qualcomm is actively expanding new high-growth fields, such as data centers and artificial intelligence chips, which are important strategic directions.

Cristiano Amon emphasizes that Qualcomm is conducting in-depth discussions with a leading super-large cloud company, planning to supply AI chips for it, and expecting related acquisitions to begin in the 2028 financial year. He stressed that although we were in the early stages of this expansion, we were approaching multiple potential customers.

Qualcomm also emphasized that the automotive business is one of the company's largest growth opportunities. Although the third quarter saw auto business growth of 21% and the amount reached USD 984 million, slightly lower than the 24% growth rate of Internet business, the growth opportunities in the automotive and Internet sectors will far exceed Apple's revenue. Another major department of Qualcomm is QTL (Qualcomm Technology Licensing), which is responsible for charging development and patenting technology licenses, including some 5G standard technologies. QTL's Q3 harvest was 11%, with a value of US$1.32 billion.

Although Qualcomm's financial report exceeded market analyst expectations, trading after the stock market fell. This may reflect investors' deeper consideration of the growth rate of a particular business, or a reflection of the overall sentiment of the market. Qualcomm is facing a long-term challenge of losing Apple-based chip business. However, the company's diversified layout of the Internet, automobiles and new AI chip markets is actively seeking new growth curves. The close cooperation between the personal AI field and Meta and the ambition of entering the AI chip market in the military data center indicates that Qualcomm's future key role in technology ecosystem will continue to deepen.