Qualcomm Incorporated (NASDAQ: QCOM) is a semiconductor and wireless technology company that designs integrated circuits and licenses intellectual property for mobile devices, automotive systems, and IoT applications. It makes money through two segments: chip sales (equipment and services) and technology licensing. In FY2025 (fiscal year ended September 28, 2025), equipment and services revenue was $37.869 billion and licensing revenue was $6.415 billion, totaling $44.284 billion, up from $38.962 billion in FY2024. Founded in 1985, Qualcomm holds a patent portfolio that the company describes as the most widely and extensively licensed in the wireless industry, covering LTE, OFDMA-based 5G, Wi-Fi, UWB, and related technologies. Its Snapdragon platforms serve mobile handsets, automotive cockpit and ADAS systems, and IoT devices across consumer, industrial, and edge networking categories. Gross margin was 55% in FY2025 and 56% in FY2024. Research and development spending was $9.042 billion in FY2025, equal to 20% of revenue.

Revenue model

Two revenue streams: (1) equipment and services, primarily chipset sales to device manufacturers ($37.869 billion, FY2025); (2) technology licensing, royalties from licensees using Qualcomm's wireless IP portfolio ($6.415 billion, FY2025). Licensing revenue carries toll-road economics, collecting royalties on devices incorporating patented wireless standards such as LTE and 5G regardless of which chipset is used.

Products and services

Snapdragon system-on-chip platforms for smartphones, PCs, automotive, and IoT; Qualcomm AI Engine with Hexagon NPU for on-device AI inference; RF front-end (RFFE) components including transmit/receive modules, power amplifiers, low-noise amplifiers, and mmWave antenna solutions; Snapdragon 5G modem-RF integrated products; wireless connectivity integrated circuits for Wi-Fi, Bluetooth, and FM; standalone Wi-Fi, Bluetooth, application processor, and Ethernet products; Qualcomm AI Stack software portfolio; Qualcomm AI Hub developer resource platform.

Customers and end markets

End markets include mobile handsets (primary volume driver), automotive (digital cockpit, ADAS, connected car), and IoT (consumer, industrial, edge networking). Industrial applications include retail, transportation logistics, manufacturing, energy, and smart home. Automotive cellular connectivity penetration is projected by TechInsights (July 2025) to reach 68% of new vehicles produced in 2030, with 48% featuring 5G. Consumer smartphone demand for calendar year 2025 was estimated approximately flat relative to calendar year 2024 per the filing.

Value-chain role

Fabless semiconductor designer and IP licensor. Qualcomm designs chipsets and licenses patents but does not manufacture silicon. It sits between foundries (manufacturing) and OEMs (device assembly), supplying chips and collecting royalties across the wireless device supply chain. It also develops software environments supporting Android, Windows, and Linux on its chipsets.

Geographic exposure

Patent portfolio covers the United States, Brazil, China, India, Japan, South Korea, Taiwan, and European countries including those covered by European patents with unitary effect. Research and development centers are located in various locations throughout the world. The filing does not break out revenue by geography in the excerpts provided.

Source: SEC 10-K, filed 2025-11-05

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