Qualcomm Inc. (NASDAQ:QCOM)

Reported Net Income

The reported net income experienced significant variability over the observed periods. Starting at 5,198 million USD, it showed a strong upward trajectory through the first three years, peaking at 12,936 million USD in the year ending September 25, 2022. Afterwards, it declined sharply to 7,232 million USD in the following year, demonstrating a substantial drop. The net income then partially recovered to 10,142 million USD, before descending again to 5,541 million USD by the final period.

Adjusted Net Income

The adjusted net income figures closely mirror the trends seen in reported net income, confirming the underlying earnings patterns after adjustments. Beginning at 5,220 million USD, adjusted net income rose similarly reaching a high of 12,823 million USD in the year ending September 25, 2022. Subsequently, it fell to 7,286 million USD and rebounded to 10,235 million USD before declining once more to 5,512 million USD by the last period.

Overall Trend Analysis

Both reported and adjusted net income demonstrate a clear pattern of growth followed by volatility and decline in the later years. The peak in 2022 indicates a period of strong profitability, but the subsequent decreases suggest potential challenges or changes in business conditions. The close alignment between reported and adjusted net income values suggests that one-time adjustments or non-recurring items had minimal impact on the overall profitability trend during this timeframe.

Net Profit Margin Trends

The reported net profit margin exhibited an overall fluctuating trend, beginning at 22.09% in 2020 and rising to a peak of 29.27% in 2022. Following this peak, there was a marked decline to 20.19% in 2023 before a moderate recovery to 26.03% in 2024. However, the margin dropped sharply again to 12.51% in 2025. The adjusted net profit margin closely mirrored this pattern, with minor deviations, indicating consistent adjustments for non-recurring items over time.

Return on Equity (ROE) Analysis

Reported ROE showed a strong initial performance, peaking at 90.88% in 2021 before undergoing a significant downward correction, reaching 26.13% by 2025. This substantial decline highlights diminishing profitability relative to shareholders' equity. Adjusted ROE values parallel the reported figures closely, suggesting minimal impact from exceptional items on equity returns. The decline from over 85% in early years to approximately 26% in the most recent period signals deteriorating efficiency in generating returns for equity holders.

Return on Assets (ROA) Evaluation

The reported ROA increased substantially from 14.6% in 2020 to a peak of 26.39% in 2022, showing improved effectiveness in asset utilization. Thereafter, a significant reduction is observed, with ROA dropping to 11.05% by 2025. Adjusted ROA mirrors this trend, confirming that asset performance decline is evident after 2022 regardless of adjustments. This contraction indicates a reduction in the company's ability to generate profits from its assets over the latter periods.

General Observations

Across all key profitability metrics—net profit margin, ROE, and ROA—there is a consistent pattern of initial growth through to 2021 or 2022, followed by notable declines in subsequent years up to 2025. The adjusted metrics align closely with the reported figures, underscoring that adjustments for investment or non-recurring factors have not significantly altered the company’s core profitability trends. The sharp downward trajectory in recent years suggests emerging challenges in maintaining profitability and efficient use of equity and assets.

Net Income Trends

The reported net income exhibited a general increasing trend from 2020 through 2022, rising sharply from $5,198 million in 2020 to a peak of $12,936 million in 2022. Following this peak, there was a notable decline in 2023 to $7,232 million, then a partial recovery in 2024 to $10,142 million, before falling again in 2025 to $5,541 million. The adjusted net income followed a very similar pattern, starting at $5,220 million in 2020, increasing to $12,823 million in 2022, then decreasing to $7,286 million in 2023, rising to $10,235 million in 2024, and finally dropping to $5,512 million in 2025.

Net Profit Margin Trends

The reported net profit margin demonstrated growth from 22.09% in 2020 to a high of 29.27% in 2022, indicating improving profitability. However, this was followed by a sharp decline to 20.19% in 2023. In 2024, the margin increased again to 26.03% but then experienced a significant drop to 12.51% in 2025, marking the lowest point in the observed period. The adjusted net profit margin closely mirrored this pattern, moving from 22.18% in 2020 up to 29.01% in 2022, declining to 20.34% in 2023, rebounding to 26.27% in 2024, and decreasing substantially to 12.45% in 2025.

Comparative Insights

The reported and adjusted measures for both net income and net profit margin are closely aligned throughout the period, indicating consistency in reported and adjusted earnings figures. The trends suggest volatility in profitability and net income, with notable peaks in 2022 and troughs in 2023 and particularly 2025. The substantial decrease in net profit margin in 2025 may indicate increased costs, reduced revenues, or other operational challenges impacting profitability.

The analysis of the financial data reveals several important trends over the observed periods. Both reported and adjusted net incomes exhibit notable fluctuations, with peak values occurring in the years ending in 2022 and subsequent declines in the following years. The reported net income rises sharply from 5,198 million USD in 2020 to a high of 12,936 million USD in 2022, before falling to 5,541 million USD by 2025. A similar pattern is seen in adjusted net income, which follows closely the reported figures, suggesting minimal adjustments between these two measures.

Return on equity (ROE), a key measure of profitability relative to shareholders' equity, shows a declining trend despite some intermediate fluctuations. Reported ROE reaches its highest at 90.88% in 2021, then decreases steadily to 26.13% by 2025. Adjusted ROE mirrors this trajectory closely, indicating consistent effects from adjustments on profitability metrics.

Net Income Trends

Both net income measures increased significantly from 2020 through 2022, more than doubling within that span. This suggests an expansion phase or exceptional performance periods. However, from 2023 onward, net income contracts considerably, reaching levels in 2025 comparable to or lower than those at the beginning of the period.

ROE Trends

The ROE values show substantial contraction over the five-year span. The high ROE levels in the early years, exceeding 85% to 90%, indicate highly efficient use of equity capital during that period. The subsequent decline to around 26% suggests either reduced profitability, increased equity base diluting returns, or both.

Consistency of Adjusted vs. Reported Figures

Adjusted net income and ROE closely track their reported counterparts, implying that adjustments made for investment or other factors have a limited effect on the overall financial performance indicators during these years.

Recent Performance

The decline in both net income and ROE in the most recent years signals challenges in maintaining prior performance levels. The decrease in profitability metrics may warrant further investigation to understand operational, market, or financial structure changes impacting the company.

The financial data reveals notable fluctuations in both reported and adjusted net income over the six-year period. Initially, net income demonstrated a strong upward trend, with reported figures increasing from 5,198 million US dollars in 2020 to a peak of 12,936 million US dollars in 2022. This peak was followed by a significant decline in 2023 to 7,232 million US dollars, a partial recovery in 2024 to 10,142 million US dollars, and another decrease to 5,541 million US dollars in 2025. The adjusted net income figures mirror these movements closely, indicating consistency between reported and adjusted results throughout the period.

Regarding the return on assets (ROA), both reported and adjusted percentages exhibit a similar pattern. ROA improved markedly from 14.6% in 2020 to a high point of approximately 26.4% in 2022. This rise parallels the substantial increase in net income during the same timeframe, suggesting enhanced asset efficiency and profitability. However, in 2023, ROA dropped sharply to around 14%, coinciding with the decline in net income. Although there was a recovery in 2024, with ROA rising to approximately 18.4%, the figure again declined noticeably in 2025 to around 11%, indicating reduced profitability relative to the asset base in the most recent period.

Income Trends

Reported and adjusted net income exhibited strong growth through 2022, followed by volatility with significant declines in 2023 and 2025, and a partial recovery in 2024.

Return on Assets (ROA)

The ROA increased consistently until 2022, reflecting improved asset utilization and profitability, but subsequently declined, with downward trends in 2023 and 2025 despite a moderate rebound in 2024.

Consistency between Reported and Adjusted Metrics

Reported and adjusted figures for both net income and ROA remained closely aligned, suggesting limited impact of adjustments on overall financial performance trends.

In summary, the data reflects a period of strong financial performance rise until 2022, followed by instability and weakening results in the subsequent years. The volatility in net income and ROA points to challenges affecting profitability and asset efficiency in the later years of the analyzed timeframe.