Q4 2025 Qualcomm Inc Earnings Call

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Playback number for today's call is 870 76606853.

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I would now like to turn the call over to Mauricio Lopez annoying Vice President of Investor Relations.

Speaker #1: Ladies and gentlemen , thank you for standing by . Welcome to the Qualcomm fourth quarter and Fiscal 2020 Earnings Conference call . At this time , all participants are in listen only mode .

Slow person doing please go ahead.

Thank you and good afternoon, everyone. Today's call will include prepared remarks by Christiane them on and of course Pago wallet. In addition, Alex Rogers will join the question and answer session.

Cristiano Amon: This builds on our acquisitions of Edge Impulse and Foundries.io, and accelerates our plans to provide a comprehensive edge AI development platform for a broad set of applications. With these new assets, we're expanding our portfolio to a wide range of customers and verticals, further cementing our position as a leader of AI for the edge. Additionally, we recently released the Arduino UNO Q single-board computer. Powered by a Dragonwing processor, this full-stack edge AI platform enables the rapid development of solutions for applications ranging from smart home automation to industrial robotics, drones, and more. AI data center growth is moving from training to dedicated inference workloads, and this trend is expected to accelerate in the coming years. The mass adoption and continuous use of AI applications is driving the industry to look for competitive alternatives that prioritize power-efficient performance and cost.

Speaker #1: Later we will talk to question and answer session . If you'd like to ask a question during this time , press star . Then the number one on your telephone keypad .

Speaker #1: To withdraw your question , press star , then the number two . If you're using a speakerphone , please pick up your handset before pressing the numbers .

You can access our earnings release and a slide presentation that accompany this call on our Investor Relations website.

In addition, this call is being webcast on Qualcomm Dot com and a replay will be available on our website later today.

Speaker #1: Please send me your questions to one question and one follow up . As a reminder , this conference is being recorded November 5th , 2025 .

During the call today, we will use non-GAAP financial measures as defined in regulation G. And you can find the related reconciliations to GAAP on our website. We will also make forward looking statements, including projections and estimates of future events business or industry trends or business or financial results.

Speaker #1: Playback number for today's call is (877) 660-6853 . International callers , please dial (201) 612-7415 . The playback reservation number is 13756092 . I would now like to turn the call over to Mauricio Lopez , vice President of Investor Relations , Mr. Lopez .

Actual events or results could differ materially from those projected in our forward looking statements.

Please refer to our SEC filings, including our most recent 10-K, which contain important factors that could cause actual results to differ materially from the forward looking statements.

Speaker #1: Please go ahead .

Speaker #2: Thank you and good afternoon , everyone . Today's call will include prepared remarks by Cristiano Amon and Akash Palkhiwala . In addition , Alex Rogers will join the question and answer session .

And now to comments from Qualcomm's, President and Chief Executive Officer, Chris General mode.

Thank you Mauricio and good afternoon, everyone. Thanks for joining us today in fiscal Q4, we delivered another strong quarter with revenues of $11 $3 billion and non-GAAP earnings per share of $3, both of which exceeded the high end of our guidance range.

Cristiano Amon: We announced our entry into this market and recently unveiled our AI inference-optimized AI 200 and AI 250 SoCs, and associated accelerator cards and racks. We're very pleased to have Humane as our first customer for these solutions, with a target deployment of 200 megawatts starting in 2026. Looking ahead, we're executing on a multi-generation roadmap with an annual cadence. I would like to share that we're looking forward to providing an update in the first half of 2026 on our data center plans, including our roadmap performance, and differentiated memory and compute technology. We'll also highlight our progress in other areas, including advanced robotics, next-generation ADAS, industrial edge AI, and 6G devices, and AI-powered RAN.

Speaker #2: You can access our earnings release and slide presentation that accompany this call on our Investor Relations website . In addition , this call is being webcast on Qualcomm's and a replay will be available on our website later today .

Speaker #2: During the call today , we will use non-GAAP Financial measures as defined in regulation G , and you can find the related to GAAP on our website .

<unk> revenues of $9 $8 billion.

Up 9% sequentially were driven by strong end customer demand for our snapdragon powered premium tier Android handsets continued traction for automotive Snapdragon digital chassis and the strength in Iot across industrial Wi Fi seven access 0.5.

Speaker #2: We will also make forward looking statements , including projections and estimates of future events , business or industry trends , or business or financial results .

Speaker #2: Actual events or results could differ materially from those projected in our forward looking statements . Please refer to our SEC filings , including our most recent 10-K , which contain important factors that could cause actual results to differ materially from the forward looking statements .

Fixed wireless and smart glasses.

In addition, all three <unk> revenue streams exceeded our expectations, including record automotive quarterly revenues in excess of $1 billion licensing business revenues were $1 4 billion.

Speaker #2: And now to comments from Qualcomm's president and Chief Executive Officer , Cristiano Amon .

Speaker #3: Thank you . Mauricio , and good afternoon , everyone . Thanks for joining us today . In fiscal Q4 , we delivered another strong quarter with revenues of $11.3 billion and non-GAAP earnings per share of $3 .

Cristiano Amon: As we execute on our strategy and expand our IP and capabilities, we believe we are one of the best-positioned companies to lead the expansion of AI to the edge, edge-to-cloud hybrid AI, and develop a power-efficient cloud inferencing solution. I will now turn the call over to Akash.

Fiscal 'twenty five non-GAAP revenues of $44 billion were up 13% year over year with record Q <unk> annual revenues of $38 $4 billion up 16% year over year, including automotive and Iot revenue growth of 36%.

Speaker #3: Both of which exceeded the high end of our guidance range . Qct revenues of $9.8 billion , up 9% sequentially , were driven by strong and customer demand for Snapdragon powered premium tier Android handsets .

Akash Palkhiwala: Thank you, Cristiano, and good afternoon, everyone. Let me begin with our fourth fiscal quarter results. We're pleased with our strong non-GAAP performance, with revenues of $11.3 billion and EPS of $3, both of which were above the high end of our guidance. QTL revenues of $1.4 billion and EBT margin of 72% were above the midpoint of our guidance, driven by slightly higher handset units. QCT delivered revenues of $9.8 billion and EBT of $2.9 billion, with year-over-year growth of 13% and 17%, respectively. QCT EBT margin of 29% was at the high end of our guidance. QCT handset revenues of $7 billion increased 14% on a year-over-year basis, reflecting increased demand for premium Android handsets powered by our Snapdragon 8 Elite Gen 5 platform.

And 22% year over year, respectively, we deliver 18% year over year growth in total <unk> non apple revenues above our prior estimates.

Speaker #3: Continued traction for automotive Snapdragon Digital Chassy and strength in IoT across industrial Wi-Fi access point 5G , fixed , wireless and smart glasses .

We remain on track to achieve our fiscal 'twenty nine long term revenue commitment as outlined at our 2024 Investor Day I will now share some key highlights from the business.

Speaker #3: In addition , all three Qct revenue streams exceeded our expectations , including record Automotive quarterly revenues in excess of $1 billion . Licensing business revenues were $1.4 billion .

At Snapdragon summit in September we introduced our Snapdragon eight elites Gen. Five mobile platform for next generation flagship AI smartphones.

This platform is equipped with our custom build third generation Orion CPU, the fastest mobile CPU ever along with an upgraded <unk> and GPU.

Speaker #3: Fiscal 25 non-GAAP revenues of $44 billion were up 13% year over year , with record Qct annual revenues of $38.4 billion , up 16% year over year , including automotive and IoT revenue growth of 36% and 22% year over year , respectively , we delivered 18% year over year growth in total , Qct non-Apple revenues above our prior estimates .

With the Snapdragon eight early Gen. Five we continue to set the pace of innovation in mobile processors.

Akash Palkhiwala: QCT IoT revenues of $1.8 billion grew 7% year-over-year, driven by strength across industrial and networking products, and increased demand for AI smart glasses powered by our Snapdragon platform. In QCT automotive, we surpassed the $1 billion quarterly revenue milestone, delivering 17% year-over-year revenue growth as the adoption of our Snapdragon digital chassis platform continues to accelerate. With the recent enactment of the One Big Beautiful tax bill, we now expect our non-GAAP tax rate to remain in the 13% to 14% range going forward, and we anticipate lower cash tax payments relative to prior expectations. This new legislation resulted in a non-cash charge of $5.7 billion in the fourth fiscal quarter to reduce the value of our deferred tax assets. This charge is excluded from non-GAAP metrics, but impacts our GAAP results. Before turning to guidance, I'd like to take a moment to highlight our strong performance in fiscal 2025.

This ear Mark our 10th Snapdragon summit with simultaneous events held in Maui, and Beijing validating the strength of our snapdragon ecosystem, leading China, Oems, including Xiaomi honor vivo and one plus announced their flagship phones at.

Speaker #3: We remain on track to achieve our fiscal 29 long term revenue commitment as outlined at our 2024 Investor Day . I will now share some key highlights from the business at Snapdragon Summit in September .

Our event.

More than 1100 partners analyst Tech Influencers and press attended in person and our key notes capture over 26 million unique views across both events.

Speaker #3: We introduced our Snapdragon eight Elite Gen five mobile platform for next generation flagship AI smartphones . This platform is equipped with our custom built third generation Orion CPU , the fastest mobile CPU ever , along with an upgraded NPU and GPU with the Snapdragon eight Gen five .

Together with our announcements Snapdragon summit generated over 547 million social media impressions. In addition, our snapdragon insiders community of Tech enthusiasm developers and fans has grown to more than 20 million members worldwide.

Our highly differentiated technology continues to drive increased brand visibility and during the quarter. Qualcomm debuted at 39 on the Interbrand Top 100 global brands list for 2025, reflecting the strength of Snapdragon and for the first time ever <unk> brand is the most valuable.

Speaker #3: We continue to set the pace of innovation in mobile processors . This year , mark our 10th Snapdragon Summit with simultaneous events held in Maui and Beijing , validating the strength of our Snapdragon ecosystem .

Akash Palkhiwala: We are incredibly pleased with our execution, with non-GAAP revenues of $44 billion and EPS of $12.03, representing year-over-year growth of 13% and 18%, respectively. In QCT, we achieved 16% year-over-year revenue growth, driven by double-digit increases across all revenue streams, with IoT up 22% and automotive growing 36%. We also delivered QCT operating margins of 30%, in line with our long-term target we've previously outlined. Over the past five years, our non-Apple QCT revenues grew at a 15% compounded annual growth rate. Similarly, over the last two years, our non-Apple QCT revenues grew by 17% and 18%, respectively. Lastly, we generated record free cash flow of $12.8 billion, and, consistent with our commitment, we returned nearly 100% to stockholders through repurchases and dividends through the year.

Speaker #3: Leading China OEMs including Xiaomi , honor , vivo , and OnePlus announced their flagship phones at our event . More than 1100 partners , analysts , tech influencers and press attended in person , and our keynotes capture over 26 million unique views across both events .

Mobile brands list included Snapdragon, where we ranked number 38.

Also at summit, we unveiled our newest platform for premium laptops, the Snapdragon X two elite and X two elite extreme once again, our industry, leading processors continue to outperform competitors, surpassing Intel and AMD in both speed and power efficiency.

Speaker #3: Together with our announcement , Snapdragon Summit generated over 547 million social media impressions . In addition , our Snapdragon Insiders community of tech enthusiasts , developers , and fans has grown to more than 20 million members worldwide .

Our latest <unk> sets, a new benchmark is the world's fastest AI engine for laptops also exceeding Intel and AMD and performance and with the new Orion Gen. Three we have the world's first five gigahertz CPU for the ultra mobile laptop category with <unk>.

Speaker #3: Our highly differentiated technology continues to drive increased brand visibility , and during the quarter , Qualcomm debuted at 39 on the Interbrand Top 100 Global Brands list for 2025 , reflecting the strength of Snapdragon and for the first time ever , Kantar's brand most valuable global brands list included Snapdragon , where we ranked number 38 .

Akash Palkhiwala: Now, turning to guidance, in the first fiscal quarter, we expect to deliver record results, with revenues in the range of $11.8 to 12.6 billion and non-GAAP EPS of $3.30 to 3.50. In QTL, we estimate revenues of $1.4 to 1.6 billion and EBT margins of 74% to 78%. In QCT, we expect record revenues of $10.3 to 10.9 billion and EBT margins of 30% to 32%. We anticipate record QCT handset revenues with low teens percentage growth sequentially, primarily driven by new flagship Android handset launches powered by Snapdragon. Following our outperformance for QCT IoT revenues in the fourth quarter, we expect a sequential decline consistent with last year, driven by seasonality in consumer products. In QCT automotive, following a record fourth quarter, we estimate revenues in the first fiscal quarter to remain flat to slightly up on a sequential basis.

Extended battery life, we now expect approximately 150 designs to be commercialized through 2026 and remain optimistic about the continued momentum for our snapdragon powered AI Pcs.

S AI transforms human computer interactions intelligent wearables and this specifically smart glasses are evolving into personal AI devices that can connect the user directly to an AI agent or model. This emerging category is growing at a remarkable pace and <unk>.

Speaker #3: Also at summit , we unveiled our newest platform for premium laptops , the Snapdragon X2 elite and X2 elite . Extreme . Once again , our industry leading processors continue to outperform competitors , surpassing Intel and AMD in both speed and power efficiency .

<unk> reached an inflection point fueled by very strong demand for smart glasses from meta this quarter alone meta introduced several new snapdragon powered styles, including the Ray ban matters second generation glasses. They all claim that that vanguard performance glasses and the method of Ray ban display.

Speaker #3: Our latest NPU sets a new benchmark as the world's fastest AI engine for laptops . Also exceeding Intel and AMD , and performance .

Speaker #3: And with the new Orion Gen three , we have the world's first five gigahertz CPU for the ultra mobile laptop category , with extended battery life .

<unk> and neuro band.

In addition to matter our leadership in this space as reflected by the 30 designs in production or development with our global partners. They include Samsung, which recently launched Galaxy XR truly multimodal AI headset and the first device for Google's, New AI native operating system.

Speaker #3: We now expect approximately 150 designs to be commercialized through 2026 , and remain optimistic about the continued momentum for Snapdragon powered AI PCs .

Akash Palkhiwala: Lastly, we forecast non-GAAP operating expenses to be approximately $2.45 billion in the quarter. In closing, as we approach one year since outlining our growth strategy at Investor Day, I'd like to provide an update on the progress towards our $22 billion fiscal 2029 revenue target across automotive and IoT. In automotive, we've established ourselves as the most strategic silicon partner for OEMs globally. The accelerating adoption of our Snapdragon digital chassis platform, and 36% year-over-year revenue growth in fiscal 2025, puts us on track to achieve our $8 billion revenue target. Across IoT, the increasing importance of artificial intelligence, high-performance, low-power computing, and connectivity, validated by our 22% year-over-year revenue growth in fiscal 2025, reinforces our confidence in achieving our $14 billion revenue target.

Speaker #3: As AI transforms human computer interactions , intelligent wearables , and specifically smart glasses are evolving into personal AI devices that can connect the user directly to an AI agent or model .

Android XR.

We achieved a significant milestone in automotive with the launch of Snapdragon ride pilot. Our first full system solution for L. Two plus automated driving developed in close collaboration with BMW. It debuted in the automakers BMW <unk> EV SUV.

Speaker #3: This immersion category is growing at a remarkable pace and has reached an inflection point fueled by very strong demand for smart glasses . From meta .

Speaker #3: This quarter alone , meta introduced several new Snapdragon powered styles , including the Ray-Ban meta . Second generation glasses , the Oakley Meta , Vanguard performance glasses , and the Ray-Ban display , and neuro band .

Powered by our advanced self driving software stack Snapdragon ride pilot sets a new standard in automated driving is designed for universal compatibility and seamless integration with automakers unlocking L. Two plus driver assistance features like hands free highway driving and <unk>.

Speaker #3: In addition to Meta, our leadership in this space is reflected by the 30 designs in production or development, with our global partners.

Akash Palkhiwala: In industrial, increasing customer engagement and growth in design win pipeline, combined with our recent acquisitions to unlock access to 30 million users, underlines our confidence in strong revenue growth through the end of the decade. In XR, we're exceeding prior expectations on strong demand for AI smart glasses, and we remain the platform of choice for smart glasses and mixed reality devices across leading global OEMs and ecosystems. In PCs, we extended our technology leadership with the recent launch of Snapdragon X2 Elite and X2 Elite Extreme platforms, which deliver multi-generational performance increases across CPU, GPU, and AI. Given our strong pipeline of approximately 150 design wins, we're optimistic about the growth potential for Snapdragon-powered AI PCs as we expand our presence across global consumer and enterprise channels.

But navigation for vehicles worldwide Snapdragon ride pilot is currently validated in 60 countries and extends to 100 in 2026.

Speaker #3: They include Samsung , which recently launched Galaxy XR , a truly multimodal AI headset . In the first device for Google's new AI native operating system , Android XR , we achieved a significant milestone in automotive with the launch of Snapdragon Ride Pilot .

The broad interest from leading automakers globally is exceeding our expectations.

At IAA mobility, Qualcomm, and Google announced an expanded partnership including the integration of Google Gemini models to our suite of Snapdragon digital chassis solutions together, we will enable automakers to build and deploy personalized AI agents to act as an <unk>.

Speaker #3: Our first full system solution for L2 plus automated driving, developed in close collaboration with BMW, debuted in the automaker's BMW X3 EV SUV, powered by our advanced self-driving software stack.

Vehicle assistance bring a multimodal edge to cloud AI to next generation software defined vehicles.

In industrial Iot, we completed our acquisition of Arduino, a premier open source hardware and software company with an Iot development ecosystem of more than 30 million users worldwide.

Akash Palkhiwala: In networking, our continued innovation and leadership in Wi-Fi, 5G, edge processing, and AI, combined with our integrated platform approach, positions us to drive content growth and adoption globally. As Cristiano outlined, beyond our revenue target, we're also pursuing incremental opportunities across data center and robotics. Finally, I want to thank our employees for exceptional execution and continuing to deliver industry-leading technologies and products. This concludes our prepared remarks. Back to you, Mauricio.

This builds on our acquisitions of edge impulse, and foundries Io and accelerate our plans to provide a comprehensive edge AI development platform for a broad set of applications.

Powered by our Advanced self-driving software stack Snapdragon. Ride pilot sets a new standard in automated driving is designed for Universal compatibility and similar integration with automakers unlocking L2 plus driver assistant features like hands-free highway driving and urban navigation for vehicles. Worldwide Snapdragon. Ride pilot is currently validated in 60 countries and extends to 100 in 2026.

With this new assets, we're expanding our portfolio to a wide range of customers and verticals further cementing our position as the leader of AI for the edge. Additionally, we recently released the or do we know you know Q single Board computer.

The broad interest from leading, automakers globally is exceeding our expectations.

Operator: Thank you, Akash. Operator, we're now ready for questions.

Operator: Thank you. To cue a question, press star and then the number one. To throw your question, press star two. If you're using a speakerphone, please pick up your handset before pressing the numbers. One moment, please, for the first question, which will come from the line of Joshua Buckhalter with TD Cowen. Please proceed with your questions.

At the IIHS Mobility event, Qualcomm and Google announced an expanded partnership, including the integration of Google Gemini models to our suite of Snapdragon digital chassis solutions.

Powered by our Dragon wing processor. This full stack edge AI platform enables the rapid development of solutions for applications, ranging from smart home automation to industrial robotics drones and more.

Together, we will enable automakers to build and deploy. Personalized, AI agents to act as an in-vehicle. Assistance, bringing multimodal Edge to Cloud AI to Next Generation, software-defined, vehicles,

AI data center growth is moving from training to dedicated inference workloads and this trend is expected to accelerate in the coming years, the mass adoption and continuous use of AI applications is driving the industry to look for competitive alternatives that prioritize power.

Joshua Buckhalter: Hey, guys. Thanks for taking my question, and congrats on a stellar set of results in a bumpy backdrop. I wanted to start with the data center business. I realize you're going to provide more details in the first half of 2026, and my questions might get punted as a result. Maybe you could spend a few minutes talking about what you see as Qualcomm's right to win in the data center space, and any details you can provide on the specs of the AI 200 and 250 beyond what you were able to offer in the press release when the Humane engagement was announced. Lastly, on this topic, last quarter, you called out, I believe, a hyperscale engagement. I assume that's distinct from the Humane engagement, and any details on timing there. Thank you.

In industrial iot. We completed our acquisition of Arduino a premier open-source hardware and software company with an iot development. Ecosystem of more than 30 million users worldwide,

Efficient performance and cost.

We announced our entry into this market and recently unveiled our AI inference optimize AIG 200, and AIG 250, <unk> and associated accelerator cards and racks were very pleased to have humane as our first customer for these solutions with a target.

This Builds on our Acquisitions of edge impulse, and foundries IO, and accelerate, our plans to provide a comprehensive edji, development platform for broad set of applications.

With these new assets, we're expanding our portfolio to a wide range of customers and verticals further, cementing our position as a leader in AI for the edge.

Appointment of 200 megawatts starting in 2026 looking ahead, we're executing on a multi generation roadmap with an annual cadence.

Cristiano Amon: Hey, Josh. Thanks for your question. Thank you. Yes, look, we're very excited. I think this is the next chapter of, I think, the process we have been in at Qualcomm to changing the company, diversifying the company, spending our IP. I think that's one of the reasons we made acquisitions such as Alphawave. We think there are two areas that we outlined that we can participate in the data center. We were incredibly excited about the size of the opportunity and the next phase of data center build-out where there's going to be real competition. We go from training to inference. We have been focused in two areas. One is we believe we have one very strategic asset in the industry, which is a very competitive, power-efficient CPU that is both for the head node of AI clusters as well as general-purpose compute.

Additionally, we recently released the Arduino Uno que single board computer.

I would like to share that we're looking forward to providing an update in the first half of 2026 on our data center plans, including our roadmap performance and differentiated memory and compute technology. We will also highlight our progress in other areas, including advanced Robotics next generation Adas industrial edge AI and <unk>.

Powered by a dragon wing processor. This full stack Edge, AI platform enables. The rapid development of solutions for applications, ranging from smart home, automation to Industrial robotics, drones and more

60 devices and AI powered ran.

As we execute on our strategy and expand our IP and capabilities. We believe we are one of the best positioned companies to lead the expansion of AI to the edge edge to cloud hybrid AI and develop a power efficient cloud inferencing solution.

And this trend is expected to accelerate in the coming years. The mass adoption and continuous use of AI applications is driving the industry to look for competitive Alternatives. The prioritize power efficient, performance and cost.

Cristiano Amon: We also have been building what we think is a new architecture dedicated for inference. I think the focus has been increased compute density and simplified the architecture for the data center in terms of increased, I think, performance per watt. I think it's all going to be about generating the most amount of tokens with the least amount of power, and that's our right to play. We're excited about what we're doing that has been in development. It's something that we're actually doing in a very disciplined manner. We spend a lot of time, I think, with our early experimentation with AI 100 to develop the software. We're now building AI 200, AI 250, both the SoC, the card, the rack solutions. I think we're pleased with what we're seeing. We will provide more details on that, as you outlined, early next year.

I will now turn the call over to our cash.

We announced our entry into this market. And recently unveiled, our AI inference optimized, AI 200 and AI 250 soc's and Associated accelerator cards in racks.

Thank you Krishna and good afternoon, everyone. Let me begin with our fourth fiscal quarter results.

We are pleased with our strong non-GAAP performance with revenues of $11 3 billion and EPS of $3, both of which were above the high end of our guidance.

We are very pleased to have Humane as our first customer for these Solutions with a Target deployment of 200, megawatts starting in 2026 looking ahead. We're executing on a multi-generation road map with an annual Cadence.

QTL revenues of $1 4 billion and EBT margin of 72% were above the midpoint of our guidance driven by slightly higher handset units.

<unk> delivered revenues of $9 8 billion and EBT of $2 9 billion.

With year over growth of 13% and 17% respectively.

<unk> EBT margin of 29% was at the high end of our guidance.

I would like to share that we're looking forward to providing an update in the first half of the 2026 on our data center plans, including our road map, Performance, and differentiated memory and compute technology. We'll also highlight our progress in other areas, including Advanced robotics. Next Generation, a dash industrial Edge, Ai and 6G devices in AI powered ran.

<unk> handset revenues of $7 billion increased 14% on a year over year basis, reflecting increased demand for premium Android handsets powered by our Snapdragon eight lead Gen five platform.

Cristiano Amon: Specific to your questions, I think we were in discussion with our hyperscaler. We're very pleased with the outcome of that conversation, and that's going to be part of our update. When we provide details on the roadmap, the performance, the KPI, we'll be able to show details of the solution as well as our customer engagement. We are in conversation with a lot of companies. It's clear the market wants competition for this. In a typical Qualcomm way, we're just going to be focused on executing and show the products performing. Like I said, this is an exciting new chapter of our expansion, and alongside robotics, those are kind of new opportunities for us.

<unk> Iot revenues of $1 $8 billion grew 7% year over year, driven by strength across industrial and networking products and increased demand for AI smart glasses powered by our Snapdragon platform.

As we execute on our strategy and expand our IP and capabilities, we believe we are one of the best-positioned companies to lead the expansion of AI from the Edge to the Cloud. Hybrid AI will allow us to develop a powerful, efficient Cloud inferencing solution.

I will now turn the call over to Akash.

Thank you, cosiano and good afternoon, everyone.

Let me begin with our fourth fiscal quarter results.

In Q city automotive, we surpassed 1 billion quarterly revenue milestone delivering 17% year over year revenue growth as the adoption of our Snapdragon digital chassis platform continues to accelerate.

We are pleased with our strong non-gaap performance, with revenues of 11.3 billion and EPS of 3, both of which were about the high end of our guidance.

With the recent enactment of the one big beautiful tax Bill we now expect our non-GAAP tax rate to remain in the 13% to 14% range going forward and we anticipate lower cash tax payments relative to prior expectations.

Qtl revenues of 1.4 billion and EBT margin of 72% were above the midpoint of our guidance driven by slightly higher handset units.

Joshua Buckhalter: I appreciate all the color there and looking forward to the updates. For my follow-up, I wanted to ask about the handset market. You highlighted your ongoing momentum in the Android space as driving growth in the fourth quarter, or, excuse me, calendar fourth quarter in your prepared remarks. There's been a lot of noise, I think, about your lead Android customer potentially looking to use an internal modem more than they have in recent years. Could you maybe just talk about your visibility into your share at that customer, and any sort of share that you would expect, how you would expect that over the next year or so? Thank you.

Qct delivered revenues of 9.8 billion and EBT of 2.9 billion with year-over-year growth of 13% and 17% respectively.

This new legislation resulted in a noncash charge of $5 7 billion in the fourth fiscal quarter to reduce the value of our deferred tax assets. This.

Qct EBT margin of 29% was at the high end of our guidance.

This charge is excluded from non-GAAP metrics, but impacts our GAAP results.

Before turning to guidance I'd like to take a moment to highlight our strong performance in fiscal 'twenty five.

UCT handset revenues of 7 billion dollars increased 14% on a year-over-year basis, reflecting increased demand for premium, Android handsets powered by our Snapdragon 8 Elite Gen 5 platform.

We are incredibly pleased with our execution with non-GAAP revenues of 44 billion and EPS of $12 three.

Representing year over year growth of 13% and 18% respectively.

UCT IoT revenues of $1.8 billion grew 7% year-over-year, driven by strength across industrial and networking products, and increased demand for AI smart glasses powered by our Snapdragon platform.

In <unk>, we achieved 16% year over year revenue growth driven by double digit increases across all revenue streams with Iot up 22% and automotive growing 36%.

Cristiano Amon: Look, thanks for the question. Actually, I want to spend a little bit of time on this because I sense that there's potential for a lot of noise when noise is actually not required. I think, first of all, there is one thing that is happening with our Snapdragon and our premium tier Snapdragon Android, which has been very consistent, and this has been happening over the past few years. The premium tier is expanding. I think if we look at the overall market, we have this trend that is very healthy, and the premium tier is expanding and is adding more compute. That is the reason why our Android business, even on a market that is relatively flat, which is a handset market, we continue to grow our content, ASPs, and earnings because we see premium tier expanding.

In QC Automotive we surpassed 1 billion dollars. Quarterly Revenue Milestone delivering 17% year-over-year Revenue growth as the adoption of our Snapdragon. Digital chassis platform continues to accelerate

We also delivered <unk> operating margins of 30% in line with our long term target we've previously outlined.

Over the past five years, our non Apple Qcd revenues grew at a 15% compounded annual growth rate.

With the recent enactment of the "1, big, beautiful tax bill," we now expect our non-GAAP tax rate to remain in the 13-14% range going forward, and we anticipate lower cash tax payments relative to prior expectations.

Similarly over the last two years, our non Apple Qcd revenues grew by 17% and 18% respectively.

this new, legislation resulted in a non-cash charge of 5.7 billion in the fourth fiscal quarter, to reduce the value of our deferred tax assets,

Lastly, we generated record free cash flow of $12 $8 billion and consistent with our commitment we returned nearly 100% of stockholders through repurchases and dividends through the year now.

This charge is excluded from non-gaap metrics but impacts our Gap results.

Before turning to guidance, I'd like to take a moment to highlight our strong performance in fiscal 25.

Now turning to guidance in the fourth fiscal quarter, we expect to deliver record results with revenues in the range of $11 eight to $12 6 billion and non-GAAP EPS of $3 30 to $3 50.

Cristiano Amon: A lot of the upside we have in the handsets is primarily driven by the Android premium tier. The second part is our relationship with Samsung. We have said for a number of years, for a number of reasons, and this has been true in the past, I think, several years, that what used to be a normal relationship at a 50% share, the new baseline is about 75% share. That is always going to be our financial assumption. When we out-execute, sometimes we get more than 75%. On Galaxy S25, we got 100%. Our assumption for any new Galaxy is always going to be 75%. That is our assumption for Galaxy S26.

We are incredibly pleased with our execution, with non-gaap revenues of 44 billion and EPS of 12.3 cents. Representing year-over-year growth of 13% and 18% respectively.

In QTL, we estimate revenues of one four to $1 6 billion and EBT margins of 74% to 78%.

In <unk>, we expect record revenues of 10.3 to $10 9 billion and EBT margins of 30% to 32%.

In qct we achieved 16% year-over-year. Revenue growth driven by double digit increases across all revenue streams with iot up 22% and Automotive growing 36%

We anticipate a record Q city handset revenues with low teens percentage growth sequentially.

We also delivered qct operating margins of 30% in line with our long-term Target. We've previously outlined

Primarily driven by new flagship Android handset launches powered by Snapdragon.

Over the past 5 years, our non-apple qct revenues grew at a. 15% compounded annual growth rate.

Following our outperformance for acuity Iot revenues in the fourth quarter, we expect a sequential decline consistent with last year, driven by seasonality and consumer products.

Similarly, over the last 2 years, our non-apple qct revenues grew by 17% and 18% respectively.

Operator: The next question comes from the line of Samik Chatterjee with JPMorgan. Please proceed with your questions.

Samik Chatterjee: Hi. Thanks for taking my question. Cristiano, you mentioned on the data center side, starting with that, you mentioned the price performance for the inferencing. Performance that you're trying to deliver. I mean, most of the training clusters that we've sort of seen the other incumbents sort of talk about, the ranges of installation cost is somewhere in the sort of $30 to 40 billion per gigawatt that we're hearing of. Can you just right-size us in terms of when you're thinking about the deployment on a gigawatt basis? What kind of cost performance or price performance are you thinking of relative to these inferencing workloads that you can support on the AI 200 or AI 250? Also, trying to get to sort of what revenue implications are for Humane when you sort of deploy 200 megawatts with them. I have a follow-up, please.

In Q3 automotive following a record fourth quarter, we estimate revenues in the first fiscal quarter to remain flat to slightly up on a sequential basis.

Lastly, we generated record free cash flow of $12.8 billion, consistent with our commitment. We returned nearly 100% to stockholders.

Through repurchases and dividends through the year.

Lastly, we forecast non-GAAP operating expenses to be approximately $2 $45 billion in the quarter.

In closing as we approach one year since outlining our growth strategy at Investor day, I'd like to provide an update on the progress towards our 22 billion in fiscal 2009 revenue target across automotive and Iot.

Now, turning to guidance in the first fiscal quarter, we expect to deliver record results with revenues in the range of 11.8 to 12.6 billion and non-gaap EPS of $3.30 to $3.50.

In qtl, we estimate revenues of 1.4 to 1.6 billion and EBT margins of 74 to 78%.

In automotive we have established ourselves as the most strategic silicon partner for Oems globally.

In qct, we expect record revenues of 10.3 to 10.9 billion and EBT margins of 30 to 32%.

The accelerating adoption of our Snapdragon digital chassis platform and 36% year over year revenue growth in fiscal 'twenty five puts us on track to achieve our $8 billion revenue target.

We anticipate record qct handset revenues with low teens percentage growth sequentially.

Primarily driven by new flagship Android handset launches powered by snapdragon.

Across Iot, the increasing importance of artificial intelligence high performance low power computing and connectivity validated by our 22% year over year revenue growth in fiscal 'twenty five.

Cristiano Amon: Okay. I'm going to try to give as much color as I can without getting ahead of the update we're going to provide next year. First, let's just have a broader discussion about revenue. What we said before, what we said before, that we expect data center products to start leading to a revenue REM beginning in fiscal 2028. I think as a result of the Humane engagement and our progress on the AI accelerator, I think we're pulling this forward into fiscal 2027. You should expect now, from what we said before, I think data center revenue is going to start to become material in fiscal 2027. I think that's the extent of what I can provide at this moment. It's about a one-year pulling. The second thing is we are getting interest.

Following our outperformance for qct iot revenues in the fourth quarter. We expect a sequential decline consistent with last year, driven by seasonality in consumer products.

Reinforces our confidence in achieving our $14 billion revenue target.

In industrial increasing customer engagement and growth and design win pipeline combined with our recent acquisitions to unlock access to 30 million users.

In qct automotive following a record fourth quarter. We estimate revenues in the first fiscal quarter to remain flat to slightly up on a sequential basis.

Underlying our confidence in strong revenue growth through the end of the decade.

Lastly, we forecast non-gaap operating expenses to be approximately 2.45 billion in the quarter.

And XR, we're exceeding prior expectations on strong demand for AI smart glasses, and we remain the platform of choice for smart glasses, and mixed reality devices across leading global Oems and ecosystems.

In closing as we approach 1 year since outlining our growth strategy at investor day. I'd like to provide an update on the progress towards our 22 billion. Fiscal 29 Revenue Target across automotive and iot

Mpc's, we extended our technology leadership with the recent launch of Snapdragon extra elite and extra elite extreme platforms, which deliver multi generational performance increases across CPU GPU NII.

in automotive, we've established ourselves as the most strategic silicon partner for oem's globally.

Cristiano Amon: You should assume the companies that are having to deploy as much compute as they need in the data center for inference, especially now that you see the constraints that you have on power, the constraints that you have on the amount of compute density. I think we have a lot of folks interested. We will not have conversations if we didn't have a solution that is competitive. We will show the KPIs of the platform, I think, when we have a roadmap update early next year.

The accelerating adoption of our Snapdragon. Digital chassis platform and 36% year-over-year Revenue growth in fiscal 25.

Given our strong pipeline of approximately 150 design wins, we are optimistic about the growth potential for snapdragon powered <unk>.

Puts us on track to achieve our 8 billion Revenue Target.

As we expand our presence across global consumer and enterprise channels.

In networking, our continued innovation and leadership in Wi Fi five G edge processing and AI combined with our integrated platform approach positions us to drive content growth and adoption globally.

Across iot the increasing importance of artificial intelligence, high performance, low power, Computing, and connectivity validated, by our 22% year-over-year Revenue growth in fiscal 25. Reinforced in achieving our 14 billion Revenue Target

Samik Chatterjee: Okay. Got it. Maybe the second one, similar to Josh's question, I think, Akash, if I'm interpreting the market's reaction to your strong numbers, there seems to be that concern about what March looks like with the change in share of the primary Android customer. Typically, on the handset side, your quarter-over-quarter decline into March has been sort of this high single-digit pace. Is that still a good run rate with sort of the lower level of share, or would you guide us otherwise? I think that's really what the market seems to be concerned about at this point. Thank you.

As Cristiano outlined beyond our revenue target, we're also pursuing incremental opportunities across data center and robotics.

In industrial increasing customer engagement and growth in design wind pipeline combined with our recent acquisitions to unlock access to 30 million users. Underlines our confidence in strong Revenue growth through the end of the decade.

Finally, I want to thank our employees for exceptional execution and continuing to deliver industry, leading technologies and products.

This concludes our prepared remarks back to you Mary Sue.

In XR, we are exceeding prior expectations on strong demand for AI. Smart glasses, and we Remain the platform of choice for smart glasses and mixed reality devices across leading Global oems and ecosystems

Thank you operator, we're now ready for questions.

Thank you.

A question Press Star then the number one.

Gary a question press Star two if you wish.

Speakerphone, please pick up your handset before pressing the numbers one moment. Please for the first question.

In PCS, we extended our technology leadership with the recent launch of Snapdragon X2, Elite and X2 Elite extreme platforms, which deliver multi-generational performance increases across CPU, GPU and AI.

Cristiano Amon: Yeah, Sameek, thanks for the question. We're not guiding beyond first quarter at this point. When you look at our strong business momentum exiting fiscal 2025, you see the benefit of that showed up in our results, also showing up in the December quarter guidance. That carries forward into the rest of the fiscal year. The only additional thing I'd note is just a reminder that we expect to close our AlphaWave acquisition in the first calendar quarter of 2026. Otherwise, I think the business momentum is strong and just a couple of factors that you outlined.

From the line of Joshua Joshua Buchalter with TD Cowen. Please proceed with your question.

Hey, guys. Thanks for taking my question and congrats on a stellar set of results in a bumpy backdrop.

Given our strong pipeline of approximately 150 design wins. We're optimistic about the growth potential for Snapdragon, powered aip's as we expand our presence across Global consumer and Enterprise channels.

Wanted to start with the data center business I realize youre going to provide more details on our first half of 2026 and my questions might get update as a result, but maybe you could spend a few minutes talking about what you see as qualcomm's right to win in the data center space and any details you can provide on the stacks of AIG $202 50 beyond what you were.

In networking, our continued Innovation and leadership in Wi-Fi 5G, Edge processing, and AI combined, with our integrated platform approach, positions us to drive content growth and adoption globally.

As Cristiano outline beyond our Revenue Target. We're also pursuing incremental opportunities across Data Center and Robotics

Able to offer in the press release.

Operator: The next question comes from the line of Timothy Akiri with UBS. Please proceed with your questions.

The Humana and the engagement was announced and then lastly on this topic last quarter you called out.

Finally, I want to thank our employees for exceptional execution, and continuing to deliver industry-leading Technologies and products.

Samik Chatterjee: Thanks a lot. Akash, when you talked about September, you said that the beat was driven mostly by premium Android, but it seemed like it came a little more from your top customer because before you were saying to take like 30% of units out, and that was like $500 million, roughly. It seems like nowhere near that much came out from that customer. I mean, it was kind of barely down year over year. Can you just square that? Also, as part of that, can you speak to how much that customer is as kind of a baseline assumption for December? I think we've seen that the model that has their modem and it's not really selling very well. I would assume that that's a tailwind for you also in calendar Q4. I had a second question. Thanks.

I believe.

This concludes our prepared remarks back to you mercio.

Hyperscale engagement I assume that's distinct from the humane engagement and any details on timing there. Thank you.

Thank you, Kosh operator. We're now ready for questions?

Thank you.

Hey, Josh Thanks for your question and.

Yes look we're very excited I think this is the next chapter of I think of the process. We have been in Qualcomm to changing the company diversifying the company spending our IP I think that's one of the reasons I think we've made acquisitions such as Alpha wave. We think there are two areas that we outline.

To queue a question. Press Start. Then the number 1. The Destroyer, your question press star 2.

If you're using a speaker-phone, please pick up your handset before pressing the numbers.

1. Please, for the first question, which will come from the line of Joshua Joshua with TD Cowen, please proceed with your question.

That we can participate into the data center, we were incredibly excited about the size of the opportunity in the next phase I think of data center.

Build out where theres going to be real competition. We go from training to inference. We have been focused in two areas. One is we believe we have one of one very strategic asset in the industry, which is a very competitive power efficient.

Cristiano Amon: Sure, Tim. As we had said earlier, we expected to be in three of the four models of the phone that was launched. That is exactly what happened. Share, of course, is based on how sell-through plays out. Specifically, on the September quarter question, we already had kind of demand from the customer that was factored into the guidance we gave. The upside we saw was not from Apple. It was really driven by Android customers, and primarily premium tier with the launch of our new Snapdragon chip. When you look at the sequential trend, as well, as I mentioned, we're forecasting approximately low teens sequential revenue growth in the handset revenue stream for QCT, and primarily driven by Android as well. There is some benefit from Apple, but the primary driver for the growth quarter over quarter is actually Android premium tier shipments.

CPU that is both for the head node of AI clusters, as well as general purpose compute.

Hey guys, thanks for taking my question and congrats on a, you know, Stellar set of results in a bumpy backdrop. Um, I I wanted to start with the data center business, you know, I realized you're going to provide more details in the first half of 2026 and and the, my questions might get tugged at as a result, but maybe you could spend a few minutes talking about, you know what you see as qualcomm's right to win in the data center space and any details, you can provide on the specs of the AI, 20250 beyond what you you were able to offer in the press release when uh the Humane and engagement was announced. And then you know, lastly on this topic um you know last card you called out a

And then we also have been building what we think is a new architecture dedicated for inference I think the focus has been increased computer density and simplified the architecture for the data center in terms of increase I think performance per watt I think is all going to be about generating the.

I believe I a hyperscale engagement, I assume that's distinct from the Humane engagement and any details on timing there. Thank you.

Most amount of tokens with the least amount of power and that's a right to play we're excited about what we're doing there has been in development.

It's something that we're actually doing in a very disciplined manner, we spend a lot of time I think.

Well for early.

Samik Chatterjee: Okay, thanks. Is there any update on the negotiation with Huawei for a license? It seems like it's kind of dragging on a little bit. Can you just talk about that?

Experimentation with AI 100 to develop the software and then we're now building AI 200 250, both the SFC the card direct solutions and I think we're pleased where we are seeing we will provide more details on that as you outline.

Operator: Yeah, this is Alex. Thanks for the question. No, we actually don't have an update now. Discussions are still underway. Really nothing substantive to say beyond that. The next question comes from the line of Stacey Rascon with Bernstein Research. Please proceed with your questions.

Early next year.

Specific to your question. So I think we were in discussion with a hyper scaler, we're very pleased with the outcome of that conversation and that's going to be part of our update when.

This week, which is a very competitive power. Efficient, uh, CPU, that is both for the head node of AI clusters as well as general purpose compute.

Joshua Buckhalter: Hi, guys. Thanks for taking my questions. You noted the non-Apple QCT revenue was up 18% year over year. Even if I take out the auto and the IoT, it's clear that the Android piece was up, like, pretty strong double digits year over year. Am I right in assuming that's all content or primarily content, given I don't think units grew that much? Is that the right sort of pace of further content increase that we ought to be thinking about as we go forward?

When we provide details on the roadmap the performance the kpis will be able to show.

Details of the solution as well as our customer engagement. We are in conversation with a lot of companies. It's clear the market wants competition for this.

In a typical Qualcomm way, we're just going to be focused on executing in the.

And then we also have been building what we think is a new architecture, dedicated for inference. I think the focus has been increased computer density and and simplified the the architecture. Uh for the data center. In terms of increased I think performance uh per what I think is all going to be about generating the most amount of tokens with the least amount of power. And that's all right to play.

And show the products are performing like I said this is an exciting new chapter of our expansion in alongside robotics tools are kind of new opportunities for us.

Cristiano Amon: Yeah. Stacey, you're obviously doing the math right. There are two primary drivers on this. One is just the makeshift of units up. This is a trend that we've seen over the last several years. Sometimes it's thought of as a developed market trend, but that's not true. It's across all developing regions as well. The devices that are purchased continue to move up, and that shows up in the benefit to our revenue stream. The second trend is within premium tier. Content continues to grow as we deliver more and more capable chips, and more capable handsets are being delivered as a result of it. Those are the two primary drivers of the long-term trend of our handset business.

I appreciate all the color there and looking forward to the updates for my follow up I wanted to ask you about the handset market. So you highlighted your ongoing momentum in the Android space is driving growth in the fourth quarter or excuse me in calendar fourth quarter in your prepared remarks.

There's been a lot of noise I think at your lead Android customer potentially looking to use an internal modem.

More than they have in recent years could you maybe just talk about your visibility into your share at that customer.

And any sort of.

Sure that you would expect that you would expect that over the next year or so thank you.

Look thanks for the question I'm actually a winner I want to spend a little bit of time on this because I.

Joshua Buckhalter: Got it. Thanks. If I could have a quick follow-up, just the Snapdragon Android strength in September and December, is that primarily China? Is there any concerns there? I mean, is that just the timing of the launches? Any thoughts on pull forward or anything like that? Anything we ought to be thinking about there?

We're excited about what we are doing, uh, that has been in development. Uh, it's something that we actually doing in a very disciplined manner. We spend a lot of time I think, uh, with our early, uh, ex experimentation with AI 100 to develop the software. And then we're now building AI, 200 AI to 5050, both the soc, the card Direct Solutions, and, uh, I think we're pleased. What we're seeing. Uh, we will provide more details on that as well line. Um, uh, early next year, specific to your questions. I think we, we were in discussion with a hyperscaler. We're very pleased with the outcome of that uh conversation and that's going to be part of our update. Uh when we provide details on the road map, the performance, the kpi. We'll be able to show uh, details of the solution as well as our customer engagement. Uh, we are in conversation with a lot of companies. It's clear the market wants competition for

I sense that there is a potential for a lot of noise when noise.

<unk> not required I think first of all.

There is there is one thing that is happening with our snapdragon and of our premium tiers and have drug on Android, which has been very consistent and this hasn't happened over the past few years. The premium tier is expanding I think if we look at the overall market. We have we have this trend that is very healthy in the premium tier is expanding and he said.

For this. But in a typical Qualcomm way, we're just going to be focused on executing in uh in in show, the the products, uh, uh, performing. Like I said, this is is an exciting in the new chapter of our expansion and, uh, alongside robotics, those are kind of new opportunities for us.

Cristiano Amon: Yeah, no, there's no pull forward there. I think what we've seen is all of our, most of our China customers, actually all the major customers, have already launched devices. The initial reception to the devices has been very positive. We'll see a lot of our global customers launch devices as well later this quarter, going into early next year. It's just a reflection of kind of normal purchase patterns around the launch of these devices, and the great initial consumer reaction to the launches.

Being more compute this that is the reason why our Android business, even on a market that is relatively flat, which is a handset market. We continue to grow our content Asp's in earnings because we see premium tier is spending a lot of the upside we have Andy handsets is primarily driven by the Android premium tier.

Operator: The next question is from the line of Chris Caso with Wolfe Research. Please proceed with your questions.

Appreciate all the color there and looking forward to the updates. Um, for my follow-up, I wanted to ask about the handset market. You highlighted, you know, ongoing momentum in the Android space as driving growth in the fourth quarter, or the, excuse me, calendar fourth quarter, in your prepared remarks. Um, you know, there's been a lot of noise, I think, about your lead Android customer, you know, potentially looking to use an internal modem more than they have in recent years. Could you maybe just talk about your visibility, um, into your share at that customer? Um, and any sort of...

Second part is our relationship with Samsung we have said for a number of years a number of reasons and this has been true in the past I think several years that what used to be a normal relationship at a 50% share the new baseline is about 75% share and that is always going to be our financial Oh.

share that you would expect to how that you would expect that over the next year or so. Thank you.

Joshua Buckhalter: Thank you. A question again on AI data center. I realize you're going to provide some details coming up, but there are some specs out there, which is why we ask. From what we've seen, what was in the press release was perhaps a different architecture than what we've seen others attack the market with. DDR memory, PCI Express, and that. Should we interpret that as sort of a first approach by Qualcomm with more to come, or is this rather a different sort of philosophy for attacking the market? You talked about being more efficient on power consumption. Is this sort of attacking the market differently than what's in the market today?

<unk> when we out execute sometimes we get more than 75% on Galaxy 25, we got 100% our assumption for any new galaxies I always going to be 75%, that's our assumption for Galaxy S 26.

The next question comes from the line of Cemig Chatterji with Jpmorgan. Please proceed with your questions.

Oh, look, thanks for the question. I'm actually I want to, I want to spend a little bit of time on this because I I I I I sense that there's a potential for a lot of noise when noise, uh, is actually not required. I think, first of all, there is, there is 1 thing that is happening with our Snapdragon and our premium tier Snapdragon Android, which has been very consistent in this is going to happen over the past few years. The premium tier is expending. I think if we look at the overall Market, uh we have we have this trend that is very healthy and the premium tier is

Hi, Thanks for taking my question.

Question on you mentioned the on the datacenter side, starting with that you mentioned the price performance for the influencing.

Cristiano Amon: I think the answer to the question is yes. For us, I think we're approaching this thinking about what the future architecture should look like. We had said before, and I think we have thought about this for the edge as well, which means when we think about dedicated inferencing clusters, and the goal is to actually have the highest possible computer density at the lowest possible cost and energy consumption to generate tokens, we thought that maybe an architecture that is beyond the GPU and what you've traditionally been doing with GPU and HBM is what we should be doing. That's where developing, and we have to execute. That's the focus on the company right now.

Performance that you are trying to deliver.

Most of the training clusters that we've sort of seen the other incumbent sort of talk about the ranges of.

Installation costs at somewhere in that sort of $30 40 billion per gigawatt that we are hearing off can you just right size us in terms of when you're thinking about.

Bill deployment on a gigawatt PSA is what kind of cost performance of price performance are you thinking off relative to these influencing.

Clause that you can support on the AIG 200, or two to 50.

And also trying to get to sort of what revenue implications are for human when you had to sort of deploy 200 megawatts with them and I have a follow up please.

Okay, I'm going to try to give as much color as I can without getting ahead of the update we're going to provide next year. So so first let's just have a broader discussion about revenue.

Spending and is adding more compute. This that is the reason why our Android business even on the market that is relatively flat, which is a hints and Market, we continue to grow our content asps and earnings because we see premium tier expending, a lot of The Upside. We have in the handsets is primarily driven by the Android Premiere. Second part is a relationship with Samsung. We have said for a number of years, uh, a number of reasons and this has been true on the past. I think several years that what used to be a normal relationship at a 50% share. The new Baseline is about 75% share and that is always going to be our financial. Um, assumption when we out execute, sometimes we get more than 75% on Galaxy S2. We got 100% our assumption for any new galaxies is always going to be 75%. That's our assumption for Galaxy s26.

Joshua Buckhalter: Got it. Just back on handsets, you talked about a makeshift towards the premium tier. To what extent has the growth that you've seen in handsets been driven by Snapdragon ASPs? Obviously, wafer prices are going up as you go to finer geometries. Maybe talk about the impact of higher ASPs on handset growth, both now and going forward, and how the industry absorbs those higher ASPs.

The next question comes from the line of sake chattery with JP Morgan. Please just see with your questions.

Well, we said before what we said before that we expect our data center products to start leading to a revenue ramp beginning in fiscal 'twenty eight.

I think as a result of the humane engagement and <unk> and our progress on on the AI accelerator.

I think we're pulling this forward into fiscal 'twenty seven so you should expect now from what we said before I think data center revenue is going to start to become material in fiscal 2007. So I think that's the extent of what I can provide at this moment about a one year of Poland. The second thing is we are we are getting.

Hi. Um, thanks for taking my question. Um, Christina, you mentioned the on the data center side, starting with that. Um, you mentioned the price performance, um, for the inferencing, um, performance that you're trying to deliver. Um, I mean, most of the training, uh, clusters that we've sort of seen the other incumbent, sort of talk about the ranges of, um, installation costs is somewhere in the sort of 304 billion per gigawatt that we here.

Cristiano Amon: Yeah. I think there's a long-term trend that we've seen. This is a conversation that we have every year, but we continue to see just very strong demand for more capable chips, more capable processing in these premium tier chips. The competition between the OEMs drives it, and the demand for consumers doing more activity on the phone drives it. We know the next couple of chips that we are making, and we're already in advanced discussions with our customers. We feel pretty confident that there are legs to this trend over the next several years. The second factor that I outlined is important to keep in mind as well. This very significant makeshift towards more premium devices is not about content growth within the tier, but it's more about more capable devices being purchased by consumers.

Interest you should assume that companies they're having.

To deploy as much compute as they need and the data center for inference, especially now that you see.

Hearing of, can you just write sizes in terms of when you're thinking about, um, the uh, deployment on a gigawatt basis? What kind of cost performance a price performance? Are you thinking of relative to these influencing, uh, workloads that you can support on the AI 200 or 2 AI 250. And I'm also trying to get to sort of what Revenue implications are for human, when you sort of deploy 200, megawatts with them and have a follow-up please.

The constraints that you have on power the constraints that you have on the amount of computer and density I think we have a lot of folks interested we will not having conversations if we didn't have a solution that is competitive.

Okay, I'm going to try to give as much call as I can uh without getting ahead of uh the update. We're going to provide next year so. So first, let's just have a broader discussion about Revenue.

But we will show the Kpis of the platform I think when we have a roadmap update early next year.

What we said before, what we said before that, uh, we expect, uh, data center products to start, uh, leading to a revenue Ram beginning in fiscal 28.

Okay, Okay got it and maybe the second one seems similar to Justice question, I think Oh gosh, if im interpreting the market's reaction to your strong numbers there seems to be that concerned about what march looks like with the change in share at the primary Android customer.

Cristiano Amon: That is a multi-year trend as well that we're continuing to see going forward.

Typically on the handset side your quarter over quarter decline into March has been sort of this high single digit fees is that still a good run rate with sort of the lower level of share or would you sort of guide us other ways, because I think thats really what the market seems to be sort of concerned about at this point. Thank you.

Operator: The next question is from the line of Tal Liani with Bank of America. Please proceed with your question.

Samik Chatterjee: Hi, guys. Thank you. If I look at this quarter, you grew handsets by 14%, and it looks like next quarter you're guiding again 600 basis points above market growth or above market expectations for QCT. When you look at next quarter, what are the components of this outperformance? Can you go over kind of IoT, autos, and handsets? Where do you think you can perform better than you initially thought last quarter, etc.? Can you give us a little bit of a color on how next quarter is behaving of the QCT breakdown? Thanks.

Yes.

Thanks for the question.

We're not guiding beyond the first quarter at this point, but when you look at our strong business momentum.

Existing fiscal 'twenty five you see the benefit of that showed up in our results also showing up in the December quarter guidance and so that carries forward into the rest of the rest of the fiscal year.

The only only additional thing I'd note is just a reminder, that we expect to close are all probably a acquisition in the fourth calendar quarter of 'twenty, six, but otherwise I think the business momentum strong and and just a couple of factors that you outlined.

I think as a result of the Humane engagement and, uh, and our progress on, on the AI accelerator. Uh, I think we're pulling this forward into fiscal 27. So you should expect. Now, from what we said before, I think data center revenue is going to start to become material in fiscal 27, so I think that's the extent of what I can provide at this moment about, uh, 1 year of pulling. The second thing is we are, um, we are getting, uh, interest. I I you should assume that, uh, companies, they are having, uh, to deploy as much compute as they need in the data center for inference, especially now that you see, um, the constraints that you, you have on power, the constraints that you have on the amount of computer density, I think we have a lot of folks interested, we will not have any conversations if we didn't have a solution that is competitive. Uh, but we will, we will show the kpis that the platform, I think when we have a road map update early next year,

Here.

Cristiano Amon: Tal, just to confirm, your question is about the December quarter, first fiscal quarter?

Samik Chatterjee: Yes, first fiscal quarter. Sorry, the question is about the guidance for next quarter. Yes.

The next question comes from the line of Timothy Arcuri with UBS. Please proceed with your question.

Cristiano Amon: Yeah, perfect. Specifically in automotive, we had a record quarter in September, so approximately $1.1 billion. We are guiding flat to slightly up in automotive. We do think that we're in this very strong position as additional cars get launched with our capabilities in them, we will continue to grow revenue through the year. IoT is similarly positioned, right? We saw significant upside relative to our guidance within the September quarter, and we're positioned to continue to grow revenue, starting first quarter, going into the rest of the fiscal year as well. Within handsets, the upside that you're seeing in the December quarter is really the success of our launch of our new chip. We've seen all the major OEMs launch devices with it. As I said earlier, strong consumer reaction, and that is reflected in our financial forecast.

Thanks, a lot our Kashi when you talked about September you said that the beat was driven mostly by premium Android, but it seemed like it came a little more from your top customer because before you were saying to take like 30% of units out and that was like $500 million roughly but it seems like nowhere near that much came out from that customer. So I mean, it was kind of barely down.

Okay. Okay got it. And maybe um the second 1. Um same similar to Josh's question. I think Akash if I'm interpreting the Market's reaction to your strong numbers, there seems to be that concern about what March looks like with the change in share at the primary Android customer. Uh, typically on the handset side, your quarter or quarter decline into March has been sort of this High single digit phase. Is that still a good run rate with sort of the lower level of share. Or would you sort of guide us otherwise? Um because I think that's really what the market seems to be sort of concerned about this point. Thank you.

Year over year. So can you just square that and then also as part of that can you speak to how much.

That customer is as of as kind of a baseline assumption for December I think we've seen that.

Model that has their modem and it's not really selling very well. So I would assume that that's a tailwind for you also in our.

Calendar Q4, and then I had a second question. Thanks.

Sure. So as we had said earlier, we expect it to be in three of the four models of the phone that was launched and so that is exactly what happened in share of course is based on what to sell how sell through plays out specifically on the September quarter question, we already had kind of demand from the customer that was factored into the guidance. We gave so the.

Yes, some some thanks for the question. Um, we're we're not guiding Beyond first quarter at this point, but when you look at our strong business momentum, uh exiting fiscal 25, uh, you see the benefit of that showed up in our results also showing up in the December quarter guidance and so that carries forward into the rest of the rest of the fiscal year. Um, the only only additional thing I'd note is just a reminder that we expect to close our Alpha wave acquisition in the first calendar quarter of 26, but otherwise I think the business momentum is strong and uh, and just a couple factors that uh you outlined

Cristiano Amon: On a sequential basis, as I mentioned earlier, we are forecasting low teens sequential revenue growth in the handset stream in QCT.

The next question comes from the line of Timothy Auri with UBS. Please receive your questions.

Samik Chatterjee: My follow-up is on a historical perspective. When you launch a product into China and it's into the New Year, the Chinese New Year, is first fiscal quarter the strongest quarter? What happens from a seasonality point of view? What happens for the next few quarters from a historical perspective?

Upside we saw was not from Apple It was really driven by Android customers and primarily premium tier with the launch of our new Snapdragon chip.

When you look at the sequential trend as well as as I mentioned, the where we are forecasting approximately low teens sequential revenue growth in the handset revenue stream for acuity.

Cristiano Amon: I mean, as you've seen in the past, we expect our first fiscal and second fiscal quarter to be the stronger quarters in the year. Usually, the June quarter, the third fiscal quarter, is the lower quarter. Seasonality should be consistent with what you've seen before in the handset business.

And primarily driven by Android as well. So there is there is some benefit from Apple, but the primary driver for the for the growth quarter over quarter is actually Android premium tier shipments.

Okay. Thanks, and then is there any update on the negotiation with.

Operator: The next question has come from the line of CJ Muse with Cantor Fitzgerald. Please proceed with your question.

While away for a license.

Thanks a lot. Um, akash you, you, when you talked about September, you said that the beat was driven mostly by premium Android, but it seemed like it came a little more from your top Customer because before you were saying to take like 30% of units out and that was like 500 million dollars roughly. But it seems like nowhere near that much came out from that customer. So I mean it was kind of, you know, barely down year over year. So can you just square that? And then also, as part of that can you speak to how much uh, uh that customer is as a as as as kind of a baseline assumption for December? I think we've seen that the that the, you know, model that has their modem and it's not really selling very well. So I would assume that that's a Tailwind for you also in uh, in, you know, calendar Q4 and then I had a second question. Thanks.

It seems like it's kind of dragging on a little bit can you just talk about that.

CJ Muse: Yeah, good afternoon. Thank you for taking the question. Wanted to kind of focus on QCT EBT margins. Revenues grew 5% year on year, yet margins were down 100-plus steps. I'm curious, is that a function of mix, is that a function of higher manufacturing costs, or is it simply R&D investments for future revenue growth?

Yes. This Alex Thanks for the question no. We actually don't have an update now discussions are still underway.

Really nothing substantive to say beyond that.

The next question comes from the line of Stacy <unk> with Bernstein Research. Please proceed with your question.

Hi, guys. Thanks for taking my questions.

So you noted the non Apple UCT revenue was up eight.

Cristiano Amon: Yeah, I think when you look at the year-over-year trend, I think you should think of we are investing in the data center area, which, over the last several years, we've been kind of just focusing OpEx on moving from mature businesses into growth areas. Data center is incremental to the investment profile that we have.

18% year over year, and even if I take out the auto and the Iot it's clear.

The Android piece was up like pretty strong double digits year over year. So am I right in assuming that's all content or primarily content given I don't think units grew that much and is that the right sort of pace of like further content increase that we ought to be thinking about as we go forward.

Sure then uh, so as as we had said earlier, we expected to be in 3 of the 4 models of the phone that was launched. And so that is exactly what happened and share. Of course, as is based on what sell, how sell through plays out specifically on the September quarter question. Uh, we already had kind of demand from the customer that was factored into the guidance we gave. So the upside we saw was not from Apple, it was really driven by Android customers and primarily premium tier with the launch of our new Snapdragon chip. Uh, when you look at the sequential Trend, as well as, as I mentioned, uh, the uh, we're, we're forecasting approximately low teens.

CJ Muse: Okay, very helpful. I guess just to hone in on your non-Android handset business, is there an update in terms of how we should model that for calendar 2026?

Yeah, So stacy you're doing obviously doing the math right. There are two primary drivers on this one is just the mix shift of units up and so this is a trend that we've seen over the last several years and it's sometimes it's thought of as a developed market trend, but that's not true it's across all developing.

Sequential Revenue growth in the handset Revenue stream for qct and primarily driven by Android as well. So there is there is some benefit from Apple but the primary driver for the for the growth quarter over quarter is actually Android uh premium tier shipments.

Cristiano Amon: No change to what we've said on share within Apple versus what we've said in the past.

Okay. Thanks. And then is there any update on the um, negotiation with um, Huawei for a license? It seems like it's kind of dragging on a little bit. Can you just talk about that?

Yeah, this is Alex. Thanks for the question. No, we actually don't have an update. Now, discussions are still underway.

Operator: The next question comes from the line of Ben Rice with Mellies Research. Please proceed with your question.

<unk> as well.

<unk> devices that are purchased continued to move up and so that shows up in the benefit to our revenue stream.

Um, really nothing substantive to to say beyond that.

Ben Rice: Hey, guys. Thanks a lot. Just wanted to touch back on the data center again. You're going to be updating us in the next calendar year. Previously, you had an analyst day where you put out these long-term targets for FY2029. I would assume that the smallest opportunity was in XR at $2 billion. I would assume if we're going to have an event and go through something like this, this has the opportunity to be something pretty material, bigger than the smallest opportunity outlined at the last analyst day, which was $2 billion for XR by 2029, and more like another multi-billion opportunity. Can you guys clarify that?

Trend is within premium tier content continues to grow as we deliver more and more capable chips and more capable handsets are being delivered as a result of it and those are the two primary drivers of kind of the long term trend off of our handset business.

The next question comes from the line of Stacy rascon with Bernstein research. Please is here with your questions.

Hi guys. Uh, thanks for taking my questions. Um,

Year, and even if I take out the auto in the IoT, it's clear.

Got it thanks, and if I could I have a quick follow up I'm just.

Dragon Android strength in September and December.

Is that primarily China and is there any concerns or I mean is that just the timing of the launches like any thoughts on on pull forward or anything like that or anything we ought to be thinking about there.

That the Android piece was up like pretty strong double digits year-over-year. So am I right in assuming that's all content or primarily content given I don't think units grew that much. And is that the right sort of pace of like, further content increase that we ought to be thinking about as we go forward.

Yes, no. There is no pull forward there I think what we've seen is all of our most of our China customers actually all of the major customers have already launched devices.

Cristiano Amon: Yeah, Ben, that's a great observation. I think we're seeing this market take off very fast, especially AI smart glasses. We definitely feel like we're significantly ahead of the guidance that we've provided, and very significant upside opportunity. I mean, if you kind of step back and think about the broader opportunity around personal AI, and you could think of it as the glasses form factor, or the watch form factor, or hearables form factor, this could be a very, very large market. If that plays out as we suspect it might, it would create significant upside opportunity.

And the initial reception to the devices have been very positive.

You'll see a lot of our global customer launch devices as well later this quarter going into early next year and so it's just a reflection of kind of normal purchase patterns around the launch of these devices and and the great initial consumer reaction to the launches.

The next question is from the line of Chris Caso with Wolfe Research. Please proceed with your question.

Yes. Thank you.

And a question again on AI data center, and I realize you're going to provide some detail coming up but there's some specials out there. So so which is why we ask but.

Yeah, so so Stacy. Uh, you're doing obviously doing the math, right? Uh, there are 2 primary drivers on this, uh, 1 is just the makeshift of units up. And so this is a trend that we've seen over the last several years. And it's sometimes, it's thought of as a developed Market Trend, but that's not true. It's a cross all developing regions as well, the, uh, devices that are purchased continue to move up. And so that shows up uh, in the the benefit to our Revenue stream. Uh, the second trend is within premium, tier content continues to grow as we deliver more and more capable tips and more capable handsets are being delivered as a result of it. And those are the 2 primary drivers of kind of the long-term trend of uh of our handset business.

Ben Rice: Yeah, sorry, just to clarify, though, my question, and I appreciate that, is that if you're going to outline the data center opportunity and have a special event, could we assume that it's a multi-billion opportunity, something that you would call out that's at least as big, if not bigger, than anything you laid out at your last analyst day, which is the smaller opportunities are $2 to 4 billion?

Got it. Thanks. And if I could, uh, have have a quick follow-up. Um, just the uh the Snapdragon Android strength in September and December.

We've seen what was in the press release was perhaps a different architecture than what we've seen.

Others attack the market with a DDR memory, PCI express and that should we interpret that as sort of a first approach by by Qualcomm with more to come or is this rather.

Is that primarily China and is there any concerns there? I mean is that just the timing of the launches like any thoughts on on pull forward or anything like that. Anything we ought to be thinking about their

Different sort of philosophy for attacking the market you talked about being.

Cristiano Amon: Ben, no, thanks for the question. I understand it now. Yes, it's upside on that number. Success in this area, I think, presents to us a potential multi-billion dollar revenue opportunity in a couple of years. That's how we're thinking about it right now.

No.

A more efficient on power consumption is a sort of a different attacking the market differently than what's in the market today.

I think the answer to your question is yes.

<unk>.

For Us I think we were approaching this thinking about what the future architecture should look like.

Yeah, no, there's no pull forward there. I think, what, what we've seen is, uh, all of our most of our China. Customers actually all the major customers have already launched devices, uh, and the initial reception to the devices have been very positive. Uh, we'll see a lot of our Global customer launch devices as well later, this quarter going into early next year. And so, it's just a reflection of kind of normal purchase patterns around the launch of these devices and, uh, and the great initial consumer reaction to, to the launches.

Operator: Thank you. That concludes today's question and answer session. Mr. Amon, do you have anything further to add before adjourning the call?

Questions from the line of Chris queso, with wolf research, please receive your questions.

We had said before and I think that's a we have.

Operator: I just want to thank all of our partners and our employees. We are continuing to change Qualcomm into a very diversified company. We're probably one of the few companies among all the semiconductor companies that can go from 5 watts to 500 watts, with very flexible and very broad technology capabilities. I think one thing that we take pride of in every industry that we enter is that we have a platform that is a leading technology platform, and we're excited about the future of the company. We're just going to keep executing on this strategy. Thank you very much for supporting our call.

What about this for the edge as well, which means when we think about dedicated inferencing clusters and the goal is to actually have the highest possible computer density at the lowest possible cost and energy consumption to generate tokens. We thought there may be an architecture that is b.

On the GPU and what you would traditionally been doing with GPU and HBM is what we should be doing that's that's where developing in <unk> and we have to execute and and that's the focus of the company right now.

Got it.

Yes. Thank you. Um, uh, and and, and a question again on, uh, AI Data Center. And I realized, you know, you you're going to provide some details coming up, but, but there's some specs out there. So, so which is why we asked, but, you know, from we seen what was in the press release was, you know, perhaps a different architecture than what we've seen others attack the market with uh, you know, DDR memory PCI Express and that it should we interpret that as you know, sort of a first approach by by Qualcomm with more to come or is this rather a, a different sort of philosophy for attacking the market? You talked about being, you know, uh, uh, uh,

With just just back on handsets and you talked about.

Operator: Ladies and gentlemen, this concludes today's conference call. You may now disconnect.

More efficient on power consumption. Is this sort of a different, you know, attacking the market differently than what's in the market today?

This shift towards the premium tier.

To what extent has the growth that <unk> seen in handsets been driven by.

I think the the answer to the question is, yes. Uh, you know,

Dragon Asps.

And obviously.

Prices are going up as you go to final final geometries.

Maybe talk about the impact of higher Asps on handset growth, both now and going forward.

And how the industry absorbs those higher asps.

Yes. So I think there is a long term trend that we've seen this is a this is a conversation that we have every year, but we continue to see just very strong demand for.

For a more capable chips more capable.

Processing in these premium tier chips and so the competition between the Oems drives that the demand for <unk>.

Consumers doing more activity on the phone drives it and we know the next couple of chips that we're making and we're already in discussions advanced discussions with our customers. So we feel pretty confident that there is legs to this trend over the next next several years.

For us. I think we we're approaching this thinking about what the future architecture should look like. Uh, we we had uh, said before and I think that's uh we have thought about this uh for the edge as well, which means when we think about dedicated inferencing clusters and the goal of is to actually have the highest possible computer density at the lowest possible cost and energy consumption to generate tokens. We thought that maybe a, an architecture that is beyond the GPU. And what your traditionally been doing with GPU, and hbm, is what we should be doing. That's that's where developing, and uh, and we have to execute. And, uh, and that's the focus on the company right now.

The second factor that I outlined is important to keep in mind as well is there's this very significant mix shift towards more premium devices and thats not about content growth within the deal, but it's more about more capable devices being purchased by consumer and that is a multi year trend as well that we're continuing to see going forward.

Got it, um, with, uh, just just just back on handsets. And, uh, you know, you talked about, uh, a mix shift towards the premium tier, you know, to what extent has the the, the growth, uh, that you've seen in handsets, been driven by, uh, you know, Snapdragon asps. Um, and, you know, obviously, you know, we've, we've for prices are going up as you go to find. Find a geometry is, uh, you know, maybe talk about the impact of higher asps on handset growth.

The next question is from the line of Polyone with Bank of America. Please proceed with your question.

Both now and going forward, and you know how the industry absorbs those higher ASPs.

Hi, guys. Thank you.

If I look at this quarter, you grew handsets by 14% and.

It looks like next quarter, you're guiding against 600 basis points of above market growth above market expectations for Q C D.

When you look at next quarter, what are the components of this outperformance do you can you go over kind of Iot autos in handsets, where do you think you can.

<unk> better than you initially thought last quarter et cetera can you give us a little bit of a color on how next quarter is behaving all of the key city breakdown.

Tal just to confirm your question is about the December quarter first fiscal quarter.

Yes first fiscal quarter sorry. The question is about the guidance for next quarter.

Yes perfect.

<unk>.

Specifically in automotive we had a record quarter in September so $1 1 billion approximately $1 1 billion and we are guiding flat to slightly up in automotive.

That I outlined is important to keep in mind as well. Is this, this very significant makeshift towards more premium devices and that's not about content growth within the tier. But it's more about more capable devices being purchased by consumer and, and that is a multi-year trend as well that we're continuing to see going forward.

The next question is from the line of taliani with Bank of America. Please just see you through.

Hi guys. Thank you.

We do think that we are in this very strong position.

um,

Additional cars got launched with our capabilities in them, we will continue to grow revenue through the ear Iot Similarly positioned right. We saw significant upside relative to our guidance within the September quarter, and we are positioned to continue to grow revenue.

if I look at this quarter, you grew hence its by 14% And um,

It looks like next quarter. You're guiding against 600 basis points of, uh, above market growth or about markets expectations for qct

Starting fourth quarter going into the rest of the fiscal year as well.

Within handsets.

The upside that you're seeing in the December quarter is really the success of our launch of our new chip.

You've seen all of the major Oems launch devices with it.

As I said earlier with strong consumer reaction and that is reflected in our financial forecast.

When you look at the next quarter, what are the components of this outperformance? Can you go over kind of IoT, autos, and handsets? Where do you think you can perform better than you initially thought last quarter? Etc. Can you give us a little bit of color on how next quarter is behaving in terms of the QCT breakdown? Just to confirm, your question is about the December quarter of the first fiscal quarter.

On a sequential basis as I mentioned earlier, we are forecasting.

Uh, yes, first fiscal quarter. Sorry the the question is about the guidance for next quarter. Yes.

Low teens sequential revenue growth in the handset streaming and <unk>.

And my follow up is on a like historical perspective.

When you launch a product into China and its into the new years, the Chinese new year et cetera is.

His first fiscal quarter, the strongest quarter, what happens from a season not seasonality point of view what happens over the next few quarters.

From a historical perspective.

I mean as you've seen in the past we expect our first.

First fiscal and second fiscal quarter to be the stronger quarters in the year and usually the June quarter. The third fiscal quarter is a lower quarter. So that's the seasonality should be consistent with what you've seen before in the handset business.

The next question will come from the line of C. J Muse with Cantor Fitzgerald. Please proceed with your question.

Yes, good afternoon, and thank you for taking the question.

Why don't you kind of focus on QC T <unk>.

Perfect. So uh, in specifically in automotive we had a record quarter in September, so 1.1 billion, approximately 1.1 billion and we are guiding flat to slightly up in automotive. Uh, we, we do think that we're in this very strong position as a, uh, additional uh, cars get launched with our capabilities in them. Uh, we will continue to grow Revenue through the year. Uh, iot is similarly positioned, right? We saw significant upside relative to our guidance within the September quarter and we're positioned to continue to grow Revenue, uh, uh, starting first quarter going into the rest of the fiscal year as well. Um, within handsets. Uh, the the upside that you're seeing in the December quarter is really the success of our launch of our new chip. Uh, we've seen all the major oems launch devices with it. Uh, as I said earlier, strong consumer reaction and that is reflected in, in our financial forecast.

<unk> margins and revenues grew 5% year on year, yet margins were down 100, plus bips and I'm curious is that a function of mix or is that a function of higher manufacturing costs.

Uh, on a sequential basis, as I mentioned earlier, uh, we are forecasting, a low teams, uh, sequential Revenue. Growth in the handset stream in, in qct.

Or is it simply R&D investments.

And my follow-up is on, on a like historical perspective.

For future revenue growth.

Yes, I think when you look at the year over year trend.

when you launch a product into China, and its into the New Year's uh the Chinese New Year, Etc, is

I think you should think of we're investing in the data center area, which over the last several years, we've been kind of just focusing opex on moving from mature businesses into growth areas.

Is first fiscal quarter, the strongest quarter. What what happens? From a seasonal seasonality point of view. What happens for the next few quarters, uh, from historical perspective.

Peter centers incremental to the investment profile that we have.

Okay very helpful. And then I guess just hone in on your non Android handset business.

I mean, as you have seen in the past, we expect our first uh first fiscal and second fiscal quarter, to be the stronger quarters in the year and and usually the June quarter, the third fiscal quarter is the lower quarter. So that's uh seasonality. You should be consistent with what you've seen before and the Insight Business.

Is there an updated in terms of how we should model that for calendar 'twenty six.

No change to what we've said on a share with an apple.

The next question is come from the line of CJ, Muse, caner Fitzgerald. Please just see you with your questions.

What we've said in the past.

The next question comes from the line of Ben Reitzes with Melius Research. Please proceed with your question.

Hey, guys. Thanks, a lot.

Just thinking of touch back on the data center again.

The next calendar year.

Honestly, you had an analyst day, where you have to put out these long term targets for FY 'twenty nine.

Yeah, good afternoon. Thank you for taking the question. Um, wanted to kind of focus on qct. Um, EBT margins and revenues grew 5% year on year yet. Margins were down 100 plus Pips. Um, and I'm curious, you know, is that a function of mix, uh, or is that a function of higher manufacturing costs? Uh, or is it simply R&D Investments, um, you know, for future, uh, Revenue growth

So.

Yeah on the smallest opportunity once and XR at 2 billion I wouldn't assume that we're going to have an event.

I'm curious something like this.

This has the opportunity to be something pretty material.

Yeah, I think when you look at the year-over-year trend, uh I I think you should think of. Uh we are investing in the data center area, uh, which uh, over the last several years, we've been kind of just focusing Opex on moving from mature businesses into growth areas, uh data centers incremental to the investment profile that we have.

Bigger than that.

The smallest opportunity outlined at the last analyst day, It was $2 billion for XR by 29 more more like that another multibillion opportunity can you just and you guys clarify that.

Okay. It's very helpful and then I guess just just to hone in on your your non-android handset business. Um, is there an update ensure in terms of how we should model that for calendar 26?

Yes, Ben that's a that's a great observation I think where we're seeing this market take off very fast, especially AR smart glasses, and so we definitely feel like we're significantly ahead of the guidance that we provided and very significant upside opportunity.

Uh, no change to what we've said on uh, share with an apple. Uh, or is this what we've said in the past?

The next question, in the line of Ben Rice, with Mellie's research, please just see you with your question.

You discussed step back and think about the broader opportunity around personnel AI and you could think of it as the glasses form factor or the watch form factor or <unk> form factor. This could be a very very large market and so if that plays out as we suspect it might it would create significant upside opportunity.

Yeah, sorry, just to clarify though my question I appreciate that is that if youre going to outline the data center opportunity.

And have a special events.

Awesome.

Sam.

A multibillion opportunity something that you would call out that's at least as big if not bigger than anything you laid out at your at your last analyst day.

Fraternity outlined at the last analysts they was 2 billion for XR by 29 and more more like a you know, another multi-billion opportunity. Can we just and you guys clarify that

A smaller opportunity or $2 $4 billion.

Ben Thanks for the question I understand yes, it's upside on that number and our success in this area I think presents to us a potential multi billion dollar revenue opportunity and in a couple of years and that's how we're thinking about it right now.

Okay.

Thank you.

That concludes today's question and answer session. Mr. Ramon you have anything further to add before during the call.

I just want to thank all of our partners our employees.

And we are continue to change.

Yeah, Ben that's a, that's a great observation. I think we're, uh, we're seeing this Market, take off very fast, especially AI, smart glasses. And so, uh, we definitely feel like we're significantly ahead of the guidance that we provided and, uh, very significant upside opportunity. I mean, if you kind of step back and think about the broader opportunity around personal Ai and and you could think of it as the glasses form factor, or the watch form factor or hearables form factor, this could be a very, very large market. And so, if that plays out as, as we suspected might, uh, it would create significant upside opportunity.

Qualcomm into a very diversified company and we're probably one of the few companies among all the semiconductor companies that can go from five one to 500 watts.

With a very flexible and very broad technology capabilities I think one thing that we take pride off in every industry that we enter we have a platform that is a leading technology platform and we're excited about the future of the company and we're just going to keep executing on this strategy. Thank you very much for supporting our call.

Appreciate that. Is that if you're going to outline the data center opportunity, um, and have a special event, um, could be assumed that. It's that it's a multi-billion opportunity. Something that's, you would call out. That's at least as big if not bigger than anything. You know, you you laid out at your your last analyst day, which is, you know, the smaller opportunities or 2 to 4 billion dollars.

Ladies and gentlemen. This concludes today's conference call you may now disconnect.

Uh, been no. Thanks for the question, I understand. And now, yes, it's upside on that number and, uh, success in this area. I think, uh, presents to us a potential, multi-billion dollar Revenue opportunity in in a couple of years and, uh, and that's how we're thinking about it right now.

Thank you.

That concludes today's question and answer session, Mr. Ramen, do you have anything further to add before joining the call?

Uh, I just want to thank all of our partners, our employees. Um, and, uh, we'll we are continuing to change, uh, uh, Qualcomm into a very Diversified company. We probably 1 of the few, uh, companies among all this semiconductor companies that can go from 5 watts to 500 watts. Um with uh a very flexible and very broad uh technology capabilities. I think, 1 thing that would take pride of in every industry that we enter. Uh, we have a platform that is uh leading technology platform and we're excited about the future of the company. And we're just going to keep executing on this strategy. Thank you very much for supporting our call.

ladies and gentlemen, this concludes today's conference call you may now disconnect