Qualcomm exceeded analyst expectations for Q3 of fiscal 2025 with 23% revenue growth in non-smartphone sectors, like automotive and IoT. Despite a 10% revenue increase, the stock fell. The company is expanding into PCs, AR headsets, and data centers, aiming to diversify away from smartphones. Qualcomm also posted a 19% EPS increase.

In Q3 2025, Qualcomm reported $10.4 billion in revenue, beating expectations. Non-smartphone revenue grew by 23% to $2.7 billion, while QTL revenue increased by 4% to $1.32 billion. The company’s push into new markets like automotive and IoT contributed to its overall strong performance and growth in adjusted EPS.

Although Qualcomm stock dropped 5% after-hours following a strong Q3 report, the company’s revenue and earnings beat expectations. Qualcomm is venturing into AI infrastructure, PCs, and AR devices while aiming for solid Q4 results. The company expects revenue between $10.3 billion and $11.1 billion, with adjusted EPS ranging from $2.75 to $2.95.

Qualcomm’s revenue from smartphone-related segments grew by 7% to $6.3 billion, while automotive revenue surged by 21% and IoT revenue jumped 24%. The company’s foray into PCs is also gaining traction, with expectations to power over 100 models by the end of 2026. Overall, Qualcomm is diversifying its business and pursuing AI opportunities to drive future growth and success.

Read more at Nasdaq: Qualcomm Earnings: Non-Smartphone Growth | Nasdaq