Qualcomm shares drops, but exceeds Q2 2025 estimates

Announcing its financial results for its third quarter of fiscal 2025, Qualcomm has met revenue expectations in Q2 2025 – critically with its sales up 10.3% year-on-year, reaching US$10.37 billion.

The chipmaker expects next quarter’s revenue to be around $10.7 billion, which Yahoo Finance suggests is 0.8% above analysts’ estimates. Likewise, Qualcomm’s non-GAAP profit of $2.77 per share was 2.1% above analysts’ consensus estimates.

Qualcomm has reported an adjusting operating income of $3.54 billion versus analyst estimates of $3.47 billion. Its operating margin was 26.6%, up from 23.6% in the same quarter last year.

Overall, the company has achieved a market capitalisation of $174.8 billion.

“Another quarter of strong growth in QCT Automotive and IoT revenues further validates our diversification strategy and confidence in achieving our long-term revenue targets,” says Cristiano Amon, President and CEO of Qualcomm Incorporated.

“Our leadership in AI processing, high-performance and low-power computing and advanced connectivity positions us to become the industry platform of choice as AI gains scale at the edge.”

However, the update resulted in shares dipping by almost 6%, which could be on account of Qualcomm’s growth still behind other chip leaders.

Having operated at the forefront of cellular connectivity for more than four decades, Qualcomm remains a leading innovator and manufacturer of wireless technology chips. As AI continues to reshape the wider technology industry, leaders are having to continually adapt and find new opportunities for innovation.

Qualcomm’s Q2 results arrive shortly after the company announced it would be returning to the data centre market. The landmark decision from the semiconductor company in May 2025 was primarily to diversify its offerings, but it is expected that the company will also want to remain competitive in a continually fast-paced industry.

Amon shared at the time: “With the ability to connect our custom processors to Nvidia’s rack-scale architecture, we’re advancing a shared vision of high-performance energy-efficient computing to the data centre.”

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