Ever wonder what powers the gadgets we can’t live without? From the smartphone in your pocket to the smart glasses perched on your nose, there’s a tiny piece of silicon making it all happen. In the fast-moving world of tech, one company has been quietly shaping the future, and their latest earnings report is a wake-up call for anyone paying attention to the chip industry. Qualcomm, a titan in semiconductors, just dropped its fiscal third-quarter results for 2025, and let me tell you, it’s a fascinating mix of bold wins and ambitious plans. I’ve been following tech for years, and there’s something undeniably exciting about a company that’s not just keeping up but pushing the boundaries of what’s possible.
Qualcomm’s Q3 2025: A Snapshot of Success
Qualcomm’s third-quarter earnings for the period ending June 29, 2025, were nothing short of impressive. The company reported adjusted earnings per share of $2.77, surpassing Wall Street’s expectations of $2.71. Revenue hit $10.37 billion, slightly above the anticipated $10.35 billion. These numbers aren’t just digits on a spreadsheet—they signal a company firing on all cylinders, navigating a tricky market with confidence. But what’s driving this success, and why should you care? Let’s break it down.
Smartphone Chips: The Core of Qualcomm’s Empire
Qualcomm’s bread and butter has long been its handset chip business, powering high-end smartphones from brands like Samsung. In Q3, this segment brought in $6.33 billion, just shy of the $6.44 billion analysts expected. While that’s a slight miss, it’s still a massive chunk of revenue, and it shows how deeply Qualcomm is embedded in the devices we use every day. Think about it: every time you scroll through your phone, there’s a good chance Qualcomm’s tech is making it happen.
The smartphone market remains a cornerstone of our business, but we’re not stopping there.
– Qualcomm’s leadership team
But here’s where it gets interesting. Qualcomm knows it can’t rely on smartphones forever. With Apple, one of its biggest modem customers, set to phase out Qualcomm’s chips in the coming years, the company is already pivoting. It’s not just about surviving—it’s about thriving in new markets. And honestly, that kind of foresight is what separates the good from the great in tech.
AI and Smart Glasses: The Future Is Personal
One of the most exciting parts of Qualcomm’s Q3 report is its push into artificial intelligence and the Internet of Things (IoT). The company’s IoT division, which includes chips for Meta’s Ray-Ban smart glasses and Quest VR headsets, raked in $1.68 billion. That’s a solid jump, driven by stronger-than-expected demand for Meta’s smart glasses. I mean, have you seen those Ray-Bans? They’re not just stylish—they’re packed with AI smarts, and Qualcomm’s chips are the brains behind them.
Qualcomm’s CEO has been vocal about their personal AI strategy, which focuses on AI that runs directly on devices rather than in the cloud. This approach is a game-changer. It’s faster, more secure, and doesn’t rely on constant internet connectivity. In my opinion, this is where the future of tech is headed—AI that’s right there with you, whether you’re snapping photos or navigating a virtual world.
- Smart glasses growth: Meta’s Ray-Ban sales tripled year-over-year, powered by Qualcomm chips.
- AI on-device: Faster, more efficient AI applications for wearables and PCs.
- Diversification: Expanding beyond smartphones to IoT and automotive markets.
The collaboration with Meta is a prime example of Qualcomm’s vision. As one executive put it, they’re not just building chips—they’re enabling the next wave of personal superintelligence. It’s a bold claim, but the numbers back it up. The IoT segment’s growth outpaced even the automotive division, which we’ll get to in a moment.
Automotive Ambitions: Driving the Next Wave
Qualcomm’s automotive business is another area to watch. With $984 million in revenue, up 21% year-over-year, it’s clear the company is serious about powering the cars of tomorrow. From self-driving systems to connected dashboards, Qualcomm’s chips are finding their way into vehicles. But here’s the catch: while 21% growth is solid, it lagged behind the IoT division’s 24% jump. Is automotive the golden goose Qualcomm hopes it will be? I’m optimistic but curious to see how this plays out.
| Business Segment | Q3 2025 Revenue | Year-over-Year Growth |
| Handset Chips | $6.33 billion | Stable |
| IoT (Smart Glasses, VR) | $1.68 billion | 24% |
| Automotive | $984 million | 21% |
The automotive push is part of Qualcomm’s broader strategy to diversify. Losing Apple as a modem customer could sting, but the company is already preparing for a future without them, projecting 15% growth in its chip business excluding Apple. That’s the kind of planning that makes investors sit up and take notice.
Licensing and Patents: The Quiet Cash Cow
Let’s not forget Qualcomm’s QTL division, which handles licensing fees for its patented technologies, including parts of the 5G standard. This segment brought in $1.32 billion, up 11% from last year. It’s not the flashiest part of Qualcomm’s business, but it’s a steady stream of income that keeps the lights on. Think of it like royalties for the tech world—every time someone uses 5G, Qualcomm gets a cut.
Our intellectual property is the backbone of our innovation strategy.
– Industry analyst
This division is a reminder that Qualcomm isn’t just a hardware company. It’s a powerhouse of intellectual property, with patents that shape the way the world connects. In a way, it’s like owning the recipe for the internet’s secret sauce.
Looking Ahead: Q4 and Beyond
Qualcomm’s not resting on its laurels. For the fourth quarter, the company forecasts adjusted earnings of $2.85 per share on $10.7 billion in revenue, beating analyst expectations of $2.83 per share and $10.35 billion. That’s a strong signal that Qualcomm expects the momentum to continue. But what’s really got me intrigued is their focus on personal AI and new markets like smart glasses and automotive tech.
Here’s a quick rundown of what’s on the horizon:
- AI expansion: More devices with on-device AI, from wearables to PCs.
- Smart glasses boom: Partnerships with Meta and others to dominate this space.
- Automotive growth: Continued investment in connected and autonomous vehicles.
Perhaps the most exciting part is Qualcomm’s ability to adapt. Losing a giant like Apple could cripple a lesser company, but Qualcomm’s already laying the groundwork for a future where they’re not just a smartphone chipmaker but a leader in AI-driven devices. It’s a bold move, and in my experience, companies that bet big on innovation tend to come out on top.
Stock Buybacks and Dividends: Rewarding Shareholders
Qualcomm’s not just focused on tech—they’re also taking care of their investors. In Q3, they spent $2.8 billion repurchasing 19 million shares and paid out nearly $1 billion in cash dividends. That’s a clear sign of confidence in their financial health. For investors, this is like a warm hug—it shows Qualcomm’s committed to returning value while still investing in growth.
But here’s a question: with so much cash being spent on buybacks, are they striking the right balance between rewarding shareholders and funding innovation? I think they’re on the right track, but it’s something to keep an eye on as competition in the chip industry heats up.
Why Qualcomm Matters to You
So, why should you care about Qualcomm’s earnings? Whether you’re an investor, a tech enthusiast, or just someone who loves their gadgets, Qualcomm’s moves affect the devices you use every day. Their chips are in your phone, your smart glasses, maybe even your car. And with their focus on personal AI, they’re shaping a future where tech feels more intuitive, more human.
In my view, Qualcomm’s Q3 2025 report is a reminder that the tech world is always evolving. Companies that can pivot, innovate, and diversify are the ones that thrive. Qualcomm’s not just riding the wave—they’re helping create it. And if their bets on AI and IoT pay off, we could be looking at a company that’s not just a chipmaker but a cornerstone of the next tech revolution.
Innovation isn’t about following trends—it’s about setting them.
– Tech industry observer
As we look to the future, one thing’s clear: Qualcomm’s not slowing down. Their Q3 results are a testament to their resilience and ambition, and I, for one, can’t wait to see what they do next. What do you think—will Qualcomm’s AI gamble pay off, or is the chip market too crowded to stand out? Let’s keep the conversation going.
