**Qualcomm (QCOM) Reports Q4 2025 Earnings: Beats Revenue Estimates Despite Tax Charge Impact on EPS**
Qualcomm has released its financial results for the fourth quarter of fiscal 2025, delivering strong revenue performance that surpassed Wall Street expectations. The tech giant reported quarterly revenue of $11.27 billion, exceeding the $10.77 billion estimate from analysts.
However, Qualcomm’s earnings per share (EPS) took a hit due to a substantial tax charge. The company posted an EPS of $3.00 per share, which was slightly above both analyst and whisper numbers. Yet, after factoring in a $6 billion 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 Tax Legislation
Qualcomm also addressed the effect of recent U.S. tax legislation under the One Big Beautiful Bill Act, which contributed to the EPS loss. Despite this, the company expects its effective tax rate to remain in the 13% to 14% range, with anticipated lower cash tax payments moving forward.
The earnings report noted: “With the enactment of recent U.S. tax legislation in the One Big Beautiful Bill Act, we now expect our effective tax rate to generally remain in the 13% to 14% range and anticipate lower cash tax payments in future periods. However, this new tax legislation resulted in a non-cash $5.7 billion charge, or $5.29 per share, in the fourth quarter of fiscal 2025 to establish a valuation allowance against our U.S. federal deferred tax assets, as we now expect to be subject to the U.S. corporate alternative minimum tax beginning in fiscal 2026. This charge was excluded from our Non-GAAP metrics but impacted our GAAP results.”
### Advancements and Product Highlights
Qualcomm is emphasizing several advancements across key sectors, including artificial intelligence (AI), gaming, and mobile performance. Notable hardware innovations highlighted include the Snapdragon 8 Elite Gen 5 mobile CPU chip, the Snapdragon X2 Elite Extreme CPU chip, and the AI-powered Snapdragon Ride Pilot Automated Driving System.
The company plans to showcase more of its product lineup at the upcoming Consumer Electronics Show (CES) in January.
### Stock Performance
On Wednesday, November 5, Qualcomm’s shares closed up $6.88 per share during regular trading. However, in after-hours trading, the stock declined by more than $4.00 per share.
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Qualcomm’s Q4 results reflect strong operational momentum despite challenges posed by new tax rules, with promising developments in technology and product offerings on the horizon.
https://www.shacknews.com/article/146695/qualcomm-qcom-q4-2025-earnings-report