Qualcomm Inc. (NASDAQ:QCOM)

The analysis of the quarterly financial ratios reveals various distinct trends over the observed periods.

Gross Profit Margin

The gross profit margin shows a gradual decline from an initial 60.17% down to about 55.43% by the last reported quarter. This steady decrease suggests growing cost pressures or reductions in pricing power over time, although the margin remains above 55%, indicating that the company maintains a strong level of profitability on its production or service delivery costs.

Operating Profit Margin

The operating profit margin exhibits more fluctuation than the gross margin. It initially rises from 29.04% to a peak exceeding 35% around mid-2022, indicating a period of improved operating efficiency or favorable cost management. However, following this peak, the margin declines considerably to about 21.74% before stabilizing and gradually improving again to approximately 27.9% in the most recent quarter. This pattern suggests volatile operating expenses or revenue mix changes influencing operating profitability.

Net Profit Margin

The net profit margin trend is somewhat similar to the operating margin but with a slightly lower peak and trough range. After peaking above 30% in mid-2022, it diminishes to around 20.19%, then recovers to near 27% before a sharp drop to 12.51% in the last quarter. This sharp decline towards the end could indicate unusual or non-operating expenses, tax impacts, or other one-time charges affecting net profitability.

Return on Equity (ROE)

The return on equity demonstrates a strong but declining trend, starting very high at above 90% and peaking above 112% early in the period. It then continuously decreases, reaching a low of around 26.13% by the final quarter. Despite this decline, the levels remain relatively high compared to typical industry standards, though the recent sharp drop could reflect increased equity base, lower net income, or both. This decrease calls for close monitoring of equity utilization effectiveness.

Return on Assets (ROA)

The return on assets shows an upward movement initially, from 17.95% up to a peak near 27.35%, followed by a decline heading towards approximately 11.05% in the last quarter. This indicates periods of improving asset utilization and profitability, followed by some setbacks in effectively converting assets into net income. The late sharp decline aligns with the net margin drop, suggesting broader profit generation challenges at the asset level.

Overall, the financial ratios depict a company experiencing fluctuating profitability and efficiency levels. Early periods show strong profit margins and returns that gradually moderate over time. The volatility in operating and net margins, along with declining ROE and ROA in recent quarters, signal potential challenges or transitions that may impact sustainable profitability. The pronounced decline in net margin and return ratios in the most recent period warrants further investigation into specific causes, including cost structure changes, competitive pressures, or extraordinary items affecting earnings.

Revenue Trends

The quarterly revenues exhibit a pattern of fluctuations over the analyzed periods. Starting from approximately $8.2 billion, revenues experienced growth peaks around late 2021 and early 2022 with values exceeding $11 billion. This period marks the highest revenue levels in the data set. Following this peak, there is a noticeable decline through late 2022 and early 2023, with revenues falling below $9.5 billion. Subsequently, revenues appear to recover gradually, showing moderate growth toward the end of the analyzed timeframe, approaching the earlier peak levels above $11 billion again.

Gross Profit Movements

Gross profit trends generally mirror the movements observed in revenues. The gross profit increases from approximately $4.7 billion to a peak near $6.5 billion in late 2021 and early 2022. This suggests improvements in absolute profitability during the higher revenue quarters. However, similar to revenues, gross profit declines in late 2022 and early 2023 before rebounding toward the latter periods in 2024 and beyond, again approaching levels above $6.5 billion.

Gross Profit Margin Dynamics

The gross profit margin demonstrates a slow but steady decrease across the periods. It starts slightly above 60% at the beginning of the data range and progressively declines to approximately 55.4% by the final quarters. Although margins show minor fluctuations, the overall trend is downward, indicating that while revenues and gross profit fluctuate, the proportion of gross profit relative to revenue is gradually decreasing.

Overall Observations and Implications

The data reveal that while the company experiences episodic revenue growth and contraction, gross profits follow a similar trajectory with a smaller margin of reduction. The consistent downward trend in gross profit margin suggests decreasing efficiency in converting revenues into gross profit which could be due to rising costs or pricing pressures. The recovery in absolute revenue and gross profit values in the latter periods indicates potential operational or market improvements, although margin compression remains a concern for sustained profitability.

The analysis of the quarterly financial data reveals several notable trends regarding operating income, revenues, and operating profit margin over the examined periods.

Operating Income

Operating income exhibited considerable fluctuations throughout the periods. Starting at 2,526 million USD, it showed a downward trend in the initial quarters of 2021, reaching a low point around the first quarter of 2023 with values as low as approximately 1,410 million USD. However, from the latter part of 2023 onwards, operating income displayed a recovery pattern, increasing steadily to peak at around 3,555 million USD near the end of 2024 before fluctuating slightly downward yet remaining elevated compared to earlier years.

Revenues

Revenues followed a somewhat similar trajectory with initial growth until late 2021, peaking at over 11,000 million USD. Starting 2022, revenues oscillated, with a downward trend observed in early 2023 reaching below 8,500 million USD. Subsequently, a recovery phase ensued, with revenues increasing consistently from late 2023 through 2025, reaching beyond 11,000 million USD again by late 2025. Overall, revenue exhibited volatility but maintained a general cyclical pattern of peaks and troughs within the examined timeline.

Operating Profit Margin

The operating profit margin was relatively strong and stable in the early periods, generally around 29% to 36%. There was a noticeable decline starting mid-2022, with margins eroding down to approximately 21.7% in late 2023. This decline corresponds with the period of reduced operating income and revenue. Following this low, the margin improved steadily, climbing back to near 28% by late 2025, indicating a restoration of profitability levels despite revenue fluctuations.

In summary, the company experienced a cycle of growth followed by contraction in operating income and revenues through the middle years, with a corresponding decrease in operating profit margin during the contraction phase. Beginning in the second half of the timeline, all three metrics demonstrated a recovery trend, suggesting improved operational efficiency and stronger financial performance in the most recent quarters evaluated.

The financial data reveals varying trends in net income, revenues, and net profit margin over the analyzed periods.

Net Income

The net income demonstrates notable volatility across the quarters. From late 2020 to late 2021, net income generally increased, peaking in the quarter ending December 26, 2021. Following this peak, fluctuations are apparent with periods of decline, recovery, and subsequent decreases. Particularly, the net income turned negative in the last reported quarter ending September 28, 2025, suggesting a substantial loss during that period, which contrasts with the predominantly positive figures observed earlier.

Revenues

Revenues exhibit a more consistent upward trend in the earlier quarters, increasing steadily from the end of 2020 through late 2021. After reaching a high point in the fourth quarter of 2021, revenues show some fluctuations but largely maintain a range slightly below or around the previous peak through 2022 and into 2023. After mid-2023, revenues resume an upward trend, reaching new highs in 2024, before displaying some variability again towards the last quarters of the period studied. Overall, revenue figures demonstrate growth over the long term but with intermittent periods of stagnation or minor declines.

Net Profit Margin

The net profit margin percentage follows a generally positive trajectory from the start of the data series, improving from around 25% to over 30% in mid-2022. After this peak, there is a gradual decline in margin percentage through late 2023, settling in the low 20% range. Beginning in early 2024, margins again rise, approaching mid-20% levels into 2025 before experiencing a sharp decline in the final quarter reported, dropping to nearly half the earlier percentage. This sharp fall in the most recent quarter is consistent with the significant net income loss noted and highlights profitability challenges during that specific period.

In summary, while revenues generally increased over the longer term, the company faced fluctuations in profitability, with net income and net profit margin showing substantial variability. The final quarter's negative net income and reduced profit margin represent a notable deviation from the prior performance trends, indicating potential operational or market challenges affecting financial results at the end of the analyzed timeline.

The financial data reveals significant fluctuations and notable trends over the observed quarters, particularly in net income, stockholders' equity, and return on equity (ROE).

Net Income

Net income demonstrates considerable volatility throughout the periods. It peaked multiple times, such as the quarters ending in December 2021 and June 2022, with values exceeding 3 billion US dollars. Following these peaks, net income experienced pronounced declines, most notably turning negative to -3.117 billion US dollars in the quarter ending September 28, 2025. This negative figure represents a significant downturn, contrasting sharply with the generally positive values seen in earlier quarters.

Stockholders’ Equity

Stockholders’ equity exhibits a general upward trend across the time span. Starting from approximately 7.4 billion US dollars, it incrementally increased to a high of around 27.7 billion by mid-2025. However, a decline is noticeable at the end of the series, where equity drops to roughly 21.2 billion US dollars in the last reported quarter. The overall growth in equity suggests sustained capital accumulation, despite the late-stage reduction.

Return on Equity (ROE)

ROE begins at an exceptionally high level above 90%, reaching a peak over 110% in the mid-2021 period, reflecting very strong profitability relative to equity. However, a persistent downward trend follows, with ROE declining steadily to a low of approximately 26% by late 2025. Notwithstanding this decline, the ratio remains positive, indicating continued profitability but at a substantially reduced efficiency compared to earlier intervals. The downward trajectory aligns with the fluctuations observed in net income and the changes in stockholders’ equity.

In summary, the analyzed financial metrics show a company with strong equity growth and historically high profitability that has encountered increasing volatility in net income, culminating in a severe negative result in the latest quarter. The decline in ROE mirrors these challenges, signaling decreasing profitability efficiency over the evaluated periods.

The financial data reveals several noteworthy trends over the observed periods. Net income exhibits fluctuations with a general pattern of growth followed by declines in specific quarters. Starting at 2,455 million USD, net income experienced peaks and troughs, reaching a high point of 3,730 million USD during the June 2022 quarter. Subsequently, there are periods of decline, with a notable negative net income of -3,117 million USD in the September 2025 quarter, indicating a significant downturn or loss in that period.

Total assets show a consistent upward trend over the period, increasing from 37,479 million USD to a peak of 55,575 million USD around the September 2024 quarter. However, in the last few quarters observed, there is a slight decline in total assets, dropping to 50,143 million USD by September 2025. This suggests overall growth in asset base with some recent contraction.

The Return on Assets (ROA) percentage demonstrates an initial increasing trend from 17.95% to a peak of 27.35% in June 2022, coinciding with high net income and growing assets. After this peak, ROA decreases gradually to around 14.17% in September 2023, showing reduced efficiency in asset utilization. Following this dip, ROA recovers moderately, climbing back to approximately 21.1% in June 2025, before experiencing a sharp fall to 11.05% in September 2025, aligning with the significant net loss reported.

Net Income

Exhibits cyclical behavior with significant volatility, including a substantial loss reported in the terminal period.

Total Assets

Displays steady growth for most periods, reflecting asset accumulation, but with a recent slight decline suggesting possible divestitures or revaluations.

Return on Assets (ROA)

Initially strengthens as profitability improves relative to assets, but later declines reveal potential challenges in maintaining earnings efficiency, culminating in a marked drop in the final quarter.

In summary, the data indicates a period of expansion in both earnings and asset scale, followed by instability in profitability and asset efficiency. The sharp negative net income and reduced ROA towards the end highlight emerging financial stresses that may warrant further investigation to understand underlying causes and potential impacts on future performance.