Q: What is Qualcomm(QCOM) 2025Q4 Earnings Summary?

**Bullish Points:**

1. Qualcomm reported revenues of $12.3 billion for the quarter ended December 28, 2025, a 5% increase compared to the same period in 2024.

2. QCT revenues increased by 5% due to higher revenues from handsets, automotive, and IoT.

3. QTL revenues increased by 4%, primarily due to an increase in estimated sales of cellular products.

4. QTL's earnings before taxes (EBT) as a percentage of revenues increased due to lower operating expenses and higher revenues.

5. The company completed the acquisition of Alphawave IP Group plc for $2.3 billion to accelerate its expansion into data centers.

6. Qualcomm's effective tax rate for the first quarter of fiscal 2026 was 15%, reflecting benefits from foreign-derived deduction eligible income and federal research and development tax credits.

7. The company repurchased 15 million shares of its common stock for $2.65 billion during the quarter.

**Bearish Points:**

1. Net income for the quarter was $3.0 billion, a decrease of 6% compared to the same period in 2024.

2. The decrease in net income was primarily due to a decrease in QCT gross margin percentage and higher operating expenses.

3. QCT's earnings before taxes (EBT) as a percentage of revenues decreased due to higher operating expenses and lower gross margin.

4. Qualcomm's cash, cash equivalents, and marketable securities totaled $11.8 billion as of December 28, 2025, a decrease from $12.5 billion at the end of the previous quarter, primarily due to stock repurchases and acquisitions.

**Summary:**

Qualcomm's financial report for the quarter ended December 28, 2025, presents a mixed outlook. On the positive side, the company achieved a 5% increase in revenues, driven by higher sales in the QCT and QTL segments. The acquisition of Alphawave IP Group plc and share repurchases indicate strategic investments and confidence in future growth. However, the decrease in net income, primarily due to lower QCT gross margins and higher operating expenses, along with a reduction in cash reserves, are areas of concern. Overall, while Qualcomm shows potential for growth, it faces challenges that need to be addressed to improve profitability.

For more information, you can read the original text of Qualcomm(QCOM)'s financial report.