QUALCOMM Incorporated

Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm fourth quarter fiscal 2025 earnings conference call. At this time, all participants are in listen-only mode. Later, we will conduct a 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. To destroy your question, press star, then the number two. If you're using a speakerphone, please pick up your handset before pressing the numbers. Please limit your questions to one question and one follow-up. As a reminder, this conference is being recorded November 5, 2025. The playback number for today's call is 877-660-6853. International callers, please dial 201-612-7415. The playback reservation number is 137-56092. I would now like to turn the call over to Mauricio Lopez-Hedoyen. Vice President of Investor Relations. Mr. Lopez-Odoin, please go ahead.

Thank you, and good afternoon, everyone. Today's call will include prepared remarks by Christian Amon and Akash Palkawala. In addition, Alex Rogers will join the question and answer session. You can access our earnings release and a slide presentation that accompanied this call on our Investor Relations website. In addition, this call has been webcast on Qualcomm.com, and a replay will be available on our website later today. 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. 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. And now the comments from Qualcomm's President and Chief Executive Officer, Christian Omon.

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. QCT revenues of $9.8 billion, up 9% sequentially, were driven by strong end customer demand for Snapdragon-powered premium-tier Android handsets continued traction for automotive Snapdragon digital chassis, and strength in IoT across industrial, Wi-Fi 7 access point, 5G fixed wireless, and smart glasses. 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. 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 deliver 18% year-over-year growth in total QCT non-Apple revenues above our prior estimates. 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, we introduce our Snapdragon 8 Elite Gen 5 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 8 Elite Gen 5, we continue to set the pace of innovation in mobile processors. This year marked 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 OnePlus, announced their flagship phones at our event. More than 1,100 partners, analysts, tech influencers, and press attended in person, and our keynotes capture over 26 million unique views across both events. 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 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 Z Most Valuable Global Brands list included Snapdragon, where we ranked number 38. 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. Our latest NPU sets a new benchmark as the world's fastest AI engine for laptops, also exceeding Intel and AMD in performance. And with the new Orion Gen 3, we have the world's first 5 GHz CPU for the ultra-mobile laptop category with extended battery life. We now expect approximately 150 designs to be commercialized through 2026 and remain optimistic about the continued momentum for Snapdragon-powered AI PCs. 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. This emerging category is growing at a remarkable pace and has reached an inflection point fueled by very strong demand for smart glasses from Meta. This quarter alone, Meta introduced several new Snapdragon Power styles, including the Ray-Ban Meta second-generation glasses, the Oakley Meta Vanguard performance glasses, and the Meta Ray-Ban display and neural band. In addition to Meta, our leadership in this space is reflected by the 30 designs in production or development with our global partners. They include Samsung, which recently launched Galaxy XR, a truly multimodal AI headset and 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, our first full-system solution for L2 Plus automated driving. Developed in close collaboration with BMW, It debuted in the automaker's BMW iX3 EV SUV. Powered by our advanced self-driving software stack, Snapdragon Ride Pilot sets a new standard in automated driving. It's designed for universal compatibility and seamless integration with automakers, unlocking L2 Plus driver assistance 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. 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 that act as an in-vehicle assistance, bringing 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. 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. 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 UNOQ single-board computer. Powered by a Drago 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. 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. We announced our entry into this market and recently unveiled our AI Inference Optimized AI200 and AI250 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. 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.