Qualcomm Inc. (NASDAQ:QCOM)

The financial data reveals several notable trends and fluctuations over the analyzed periods. Total revenues demonstrate a general upward trajectory, increasing from 23,531 million US dollars in 2020 to 44,284 million US dollars in 2025. This growth is primarily driven by a substantial rise in the equipment and services segment, which swelled from 16,298 million in 2020 to 37,869 million in 2025. In contrast, revenues from licensing showed a volatile pattern, peaking in 2022 at 7,029 million but declining thereafter and remaining below the 2020 level through 2025.

The cost of revenues has also increased over time, moving from 9,255 million in 2020 to 19,738 million in 2025, consistent with the growth in total revenues. Consequently, gross profit showed significant growth from 14,276 million in 2020 to 24,546 million in 2025, although it experienced a dip in 2023 before recovering.

Operating expenses exhibit steady growth. Research and development expenses increased consistently from 5,975 million in 2020 to 9,042 million in 2025, reflecting continued investment in innovation. Selling, general and administrative costs also rose from 2,074 million to 3,110 million in the same timeframe. These rising expenses may indicate efforts to support growing operations and market presence.

Operating income experienced considerable volatility. After peaking at 15,860 million in 2022, it dropped sharply to 7,788 million in 2023 but showed subsequent recovery, reaching 12,355 million by 2025. This pattern aligns with the fluctuations observed in both revenues and operating expenses.

Financial income and expenses reveal some variability but remain relatively stable overall. Interest expense decreased slightly from 602 million in 2020 to 664 million in 2025, while interest and dividend income increased markedly, especially after 2022. Net gains and losses on investments and marketable securities fluctuated considerably, with impairment losses on investments generally decreasing in magnitude. Net income derived from investment and other income showed sharp changes but ended at a higher net positive level in 2025 compared to earlier years.

Income from continuing operations before income taxes closely follows the trend of operating income, increasing from 5,719 million in 2020 to 12,663 million in 2025 with some fluctuations. However, income tax expense displayed remarkable variability. It rose from 521 million in 2020 to a peak of 2,012 million in 2022, then decreased sharply in 2023 and 2024, before surging drastically to 7,122 million in 2025. This significant tax expense in 2025 contributed to a notable reduction in income from continuing operations and net income in that year.

Net income trends largely reflect those in income from continuing operations, increasing steadily until 2024 but declining sharply in 2025. The data on discontinued operations indicates minor impacts in 2022 and 2023, with negligible influence on overall net income.

Revenue Analysis

Revenues doubled over the five-year period driven by strong growth in equipment and services, while licensing revenues were less stable and declined after 2022.

Profitability

Gross profit increased significantly in line with revenue growth, but operating income showed marked fluctuations, reflecting variations in operating expenses and other income components.

Expenses

Both research and development and selling, general and administrative expenses increased steadily, indicating continued investment in business growth and operations support.

Investment Income and Expenses

Investment related income and impairment losses fluctuated, influencing net investment and other income with a positive trend towards the end of the period.

Tax Impact

Income tax expense was unusually high in 2025, significantly reducing net income despite increased revenues and operating income.

Net Income

Net income increased steadily until 2024 but fell sharply in 2025 due largely to the spike in income tax expense.