Qualcomm (QCOM) kicked off fiscal 2025 with a strong first-quarter performance, delivering record revenue of $11.7 billion, a 17% increase year-over-year, driven by broad-based strength across its core business units. Net income rose to $3.2 billion, up 15%, while non-GAAP EPS hit a record $3.41, reflecting robust operational execution and favorable product mix.

The company’s semiconductor arm, QCT, was the standout, generating $10.1 billion in revenue, up 20% from a year earlier. This growth was powered by the handset segment, which rose 13% to $7.57 billion on strong demand for premium-tier Snapdragon chipsets, including the launch of the Samsung Galaxy S25. The automotive segment surged 61% to a record $961 million, benefiting from new vehicle launches and increased in-car technology content. Meanwhile, IoT revenue climbed 36% to $1.55 billion, fueled by gains across consumer, industrial, and networking applications. QCT delivered EBT of $3.25 billion, up 25%, with an EBT margin of 32%.

The licensing division, QTL, reported steady growth, with revenue rising 5% to $1.5 billion and EBT reaching $1.16 billion, reflecting continued demand for 3G/4G/5G multimode products and royalty revenue from prior periods. EBT margin in the segment improved to 75%.

Qualcomm returned $2.7 billion to shareholders through $1.8 billion in share repurchases and $942 million in dividends, underscoring strong cash generation and capital discipline.

Looking ahead to the second quarter, the company expects non-GAAP revenue between $10.2 billion and $11.0 billion, with EPS projected in the range of $2.70 to $2.90. QCT revenue is forecasted at $8.9 billion to $9.5 billion, while automotive and IoT segments are projected to grow by approximately 50% and 15% year-over-year, respectively. QTL revenue is expected to come in between $1.25 billion and $1.45 billion, reflecting typical seasonal patterns.

CEO Cristiano Amon highlighted Qualcomm’s strategic momentum, pointing to strong Snapdragon adoption in premium smartphones and PCs, and the growing impact of on-device AI. The company now boasts over 80 Snapdragon X designs in development or production for PCs and has seen strong traction in the automotive sector, particularly with its Snapdragon Cockpit Elite and Digital Chassis platforms. CFO Akash Palkhiwala emphasized that premium-tier devices now represent over 30% of the smartphone market, a trend that continues to support Qualcomm’s margin profile and market share gains, especially in Android and with partners like Samsung.

In China, premium-tier demand and recent government subsidies are driving upside potential, though not yet factored into guidance. Meanwhile, Qualcomm’s Snapdragon X series has begun to carve out more than 10% of the U.S. retail market for $800+ Windows laptops, with further expansion into lower price tiers expected to broaden its PC market footprint.

With continued strength in high-end mobile, automotive, and IoT applications, and rising adoption of AI-enabled features, Qualcomm appears well-positioned to sustain its growth trajectory in fiscal 2025.