Qualcomm (QCOM) Q4 FY25 earnings results beat revenue expectations, EPS hit by $6 billion tax charge
**Qualcomm (QCOM) Reports Q4 2025 Earnings: Revenue Beats Expectations, EPS Impacted by Massive Tax Charge**
Qualcomm has released its financial results for the fourth quarter of fiscal 2025, delivering mixed news for investors. The tech giant exceeded Wall Street’s revenue expectations but faced a significant hit to its earnings per share (EPS) due to a substantial tax charge.
The company reported quarterly revenue of $11.27 billion, surpassing analyst estimates of $10.77 billion. Despite this strong top-line performance, Qualcomm’s EPS was adversely affected by a $6 billion tax charge. The reported EPS came in at $3.00 per share, slightly above analyst and whisper estimates. However, after factoring in the tax charge, the EPS reflected a loss of $2.89 per share.
“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 U.S. Tax Legislation
Qualcomm highlighted the effect of the recently enacted One Big Beautiful Bill Act on its financial results. While the company expects its effective tax rate to generally remain in the 13% to 14% range, this legislation triggered a non-cash charge of $5.7 billion (or $5.29 per share) in Q4. This charge establishes a valuation allowance against Qualcomm’s U.S. federal deferred tax assets, reflecting the expectation that the company will be subject to the U.S. corporate alternative minimum tax starting in fiscal 2026.
The earnings report noted, “This charge was excluded from our Non-GAAP metrics but impacted our GAAP results.” Qualcomm also anticipates lower cash tax payments in future periods as a result of the legislation.
### Advancements and Outlook
Qualcomm is showcasing progress across multiple sectors, including artificial intelligence, gaming, and mobile performance. Key hardware advancements mentioned 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.
The company plans to highlight more of its product innovations during the upcoming Consumer Electronics Show in January.
### Market Reaction
Following the earnings announcement, Qualcomm’s stock closed Wednesday, November 5, up $6.88 per share during regular trading. However, shares declined by more than $4.00 per share in after-hours trading.
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Qualcomm’s Q4 results reflect strong revenue growth and promising technological developments, while also bringing attention to the financial impact of recent tax legislation. Investors will be watching closely as the company navigates these changes and presents new products in the months ahead.
https://www.shacknews.com/article/146695/qualcomm-qcom-q4-2025-earnings-report
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