Qualcomm Maintains Leadership in Key Tech Industries on New Products: Analyst

Qualcomm maintained leadership in critical technology industries, delivering solid revenues and earnings.
Non-GAAP earnings per share (EPS) were $2.69, up 33 percent from a year earlier. Revenues were $10.244 billion, up 18 percent over the same period, driven by a 55 percent jump in automotive sales, the fifth record of quarterly gains.
Cristiano Amon, president and CEO of Qualcomm, praised the company’s fourth-quarter performance and its introduction of new products that contributed to it.
“We are pleased to conclude the fiscal year with strong results in the fourth quarter, delivering greater than 30 percent year-over-year growth in EPS,” he said in a statement accompanying the report. “We are excited about our recent product announcements at Snapdragon Summit and Embedded World, as they continue to extend our technology leadership and position us well across handsets, PC, automotive and industrial IoT [internet of things].”
These praises echo the remarks he made at the end of July, following the release of the third-quarter financial results.
“We are excited about the launch of our Snapdragon X Series solutions for PCs that deliver leading performance, unmatched power efficiency and personalized AI experiences,” he said at the time. “This launch represents a significant milestone in our transformation from a communications company to a leading intelligent computing company.”
“Qualcomm is executing exceptionally well, delivering over 20 percent growth in fiscal year earnings per share,” Sidharth Ramsinghaney, director of strategy and operations with Twilio, told The Epoch Times in an email. “This reflects the strength and diversity of their business model, as they continue to leverage their technology leadership across key growth verticals like 5G smartphones, automotive, and industrial IoT.”
Ramsinghaney sees the company’s fifth consecutive quarter of record automotive revenues as a demonstration of Qualcomm’s ability to capitalize on the rapid digitization and electrification of the automotive industry.
“Their Snapdragon Digital Chassis platform is resonating with automakers seeking to deliver the latest connected and computing capabilities in their vehicles,” he said.
In addition, Ramsinghaney said the company’s strategic investments in diversifying beyond smartphones are paying off.
“Their IoT business saw 22 percent year-over-year growth in the quarter, underscoring the company’s ability to monetize its technology in emerging growth markets like extended reality, industrial automation, and smart home,” he said.
Qualcomm’s ability to monetize technologies for high-growth industries helped it maintain leadership in these industries and return capital to shareholders through dividends and share buybacks. For instance, on Nov. 6, the board authorized $15 billion for share buybacks, on top of the $1 billion in funds remaining as of the end of 2024.
“The strong free cash-flow generation, coupled with the new $15 billion share-repurchase authorization, reflects Qualcomm’s confidence in its long-term growth prospects,” said Ramsinghaney. “The company is committed to driving shareholder value through a balanced capital-allocation strategy.”
Wall Street liked Qualcomm’s report, sending its shares sharply higher on Wednesday afternoon, though the rally faded by midday on Thursday’s regular trading session. Qualcomm’s stock is up 19.83 percent for the year, lagging the broader market, with the benchmark S&P 500 Index up 25 percent. It has been, however, a stellar performer, up 32,508 percent since it went public in September 1991.
That’s thanks to the company’s business strategy of being in the right business at the right time—wireless technologies, intelligence, and computing—riding one emerging technology trend after another. Its pioneering products became the industry standard, turning the company into a “toll” collector for almost every smartphone manufactured worldwide.
Ramsinghaney said Qualcomm’s solid quarterly and annual results highlight the company’s resilience and ability to adapt to a dynamic semiconductor market.
“Their focus on 5G leadership, automotive, and IoT diversification positions them well to capitalize on the proliferation of intelligent, connected devices across industries,” he said.