QUALCOMM Incorporated (QCOM) Bundle
A Brief History of Qualcomm Incorporated
Qualcomm Incorporated, founded in 1985, has established itself as a leader in wireless technology and telecommunications. As of fiscal year 2024, Qualcomm reported significant financial performance and strategic growth milestones.
Financial Performance Overview
In fiscal 2024, Qualcomm achieved revenues of $39.0 billion, representing a 9% increase from $35.8 billion in fiscal 2023. This growth was driven primarily by the QCT segment, which focuses on equipment and services, contributing $32.8 billion to total revenues.
Segment Performance
Qualcomm's revenue breakdown by segment is as follows:
| Segment | Fiscal 2024 Revenue (in millions) | Fiscal 2023 Revenue (in millions) | Change (in millions) |
|---|---|---|---|
| QCT (Qualcomm CDMA Technologies) | $32,791 | $30,028 | $2,763 |
| QTL (Qualcomm Technology Licensing) | $6,171 | $5,792 | $379 |
| QSI (Qualcomm Strategic Initiatives) | $18 | $28 | $(10) |
Net Income and Margins
Qualcomm's net income for fiscal 2024 was $10.1 billion, reflecting a 40% increase from $7.2 billion in fiscal 2023. The gross margin remained stable at 56% for both fiscal years.
Research and Development Expenditure
Investment in research and development (R&D) is critical for Qualcomm's innovation strategy. In fiscal 2024, R&D expenditures totaled $8.9 billion, up from $8.8 billion in fiscal 2023. This accounted for 23% of total revenues, a slight decrease from 25% in the prior year.
Stock Performance and Dividends
Qualcomm has been active in returning capital to shareholders through stock repurchase and dividend programs. In fiscal 2024, the company repurchased shares totaling $4.1 billion and paid cash dividends of $3.7 billion.
| Year | Stock Repurchases (in millions) | Dividends Paid (in millions) | Total Capital Returned (in millions) |
|---|---|---|---|
| 2024 | $4,121 | $3,687 | $7,808 |
| 2023 | $2,973 | $3,462 | $6,435 |
Debt and Liquidity
As of September 29, 2024, Qualcomm reported total debt of $14.6 billion, with a decrease from $15.4 billion in 2023. The company maintains a strong liquidity position with cash and cash equivalents of $7.8 billion and marketable securities worth $5.5 billion.
Future Outlook
Looking ahead, Qualcomm aims to leverage its leadership in 5G technology, anticipating continued demand across various sectors, including automotive and IoT. The company is focused on maintaining its competitive edge through ongoing innovations and strategic partnerships.
A Who Owns QUALCOMM Incorporated (QCOM)
Major Shareholders
As of 2024, QUALCOMM Incorporated (QCOM) has a diverse shareholder base comprising institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders of QUALCOMM as of September 29, 2024:
| Shareholder | Ownership Percentage | Shares Owned (in millions) |
|---|---|---|
| The Vanguard Group, Inc. | 8.22% | 91.3 |
| BlackRock, Inc. | 7.44% | 82.7 |
| State Street Corporation | 4.50% | 50.1 |
| FMR LLC (Fidelity) | 4.15% | 46.0 |
| Invesco Ltd. | 2.98% | 33.2 |
| Other Institutional Investors | 22.00% | 245.0 |
| Individual Shareholders | 46.71% | 517.0 |
Insider Ownership
Insider ownership is another important aspect of QUALCOMM's ownership structure. As of September 29, 2024, the following table represents the key insiders and their ownership details:
| Insider Name | Position | Shares Owned (in millions) |
|---|---|---|
| Cristiano Amon | President and CEO | 1.5 |
| Mark D. McLaughlin | Chairman | 0.8 |
| Akash Palkhiwala | Chief Financial Officer | 0.5 |
| Other Executives | Various | 3.2 |
Stock Performance and Market Capitalization
As of the end of fiscal year 2024, QUALCOMM's market capitalization was approximately $150 billion, reflecting a stock price of around $134 per share. The stock performance over the fiscal year showed a significant increase, driven by robust demand for its semiconductor products and licensing revenues.
Stock Repurchase Programs
QUALCOMM has actively engaged in stock repurchase programs to enhance shareholder value. In fiscal 2024, the company repurchased shares totaling $4.1 billion, with an average price per share of $161.37. The remaining authorized repurchase amount under the existing program is $1.0 billion as of September 29, 2024.
| Fiscal Year | Shares Repurchased (in millions) | Amount Spent (in billions) | Average Price per Share |
|---|---|---|---|
| 2024 | 25 | $4.121 | $161.37 |
| 2023 | 25 | $2.973 | $117.93 |
Dividends
QUALCOMM has maintained a consistent dividend policy. For fiscal 2024, the cash dividend announced was $0.85 per share, payable on December 19, 2024. This represents an increase from the previous year's dividend of $3.30 per share.
| Fiscal Year | Dividend per Share | Total Dividend Paid (in billions) |
|---|---|---|
| 2024 | $3.30 | $3.687 |
| 2023 | $3.10 | $3.462 |
Summary of Financial Performance
In fiscal 2024, QUALCOMM reported revenues of $39.0 billion, a 9% increase from the previous year. The net income for the year was $10.1 billion, marking a 40% increase compared to the prior year, driven by strong performance in both its semiconductor and licensing segments.
| Financial Metric | 2024 (in billions) | 2023 (in billions) |
|---|---|---|
| Revenues | $39.0 | $35.8 |
| Net Income | $10.1 | $7.2 |
QUALCOMM Incorporated (QCOM) Mission Statement
Overview of Mission Statement
QUALCOMM Incorporated's mission is to enable a world where everyone can connect seamlessly through innovative technologies. The company is committed to driving advancements in mobile technology, fostering connectivity and empowering the next generation of wireless devices.
Key Components of the Mission Statement
- Innovation: Focused on developing cutting-edge technologies to enhance communication.
- Connectivity: Aims to provide seamless connectivity solutions globally.
- Empowerment: Strives to empower users and industries through advanced technology.
Financial Performance Indicators
As of the fiscal year ending September 29, 2024, QUALCOMM reported the following financial metrics:
| Financial Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Total Revenues (in millions) | $38,962 | $35,820 | $44,200 |
| Net Income (in millions) | $10,142 | $7,232 | $12,936 |
| Basic Earnings Per Share | $9.09 | $6.47 | $11.52 |
| Operating Income (in millions) | $10,071 | $7,788 | $15,860 |
| Research and Development Expenses (in millions) | $8,893 | $8,818 | $8,194 |
| Dividends Paid (per share) | $0.85 | $0.70 | $0.65 |
Market Share and Revenue Sources
QUALCOMM's revenue distribution for the fiscal year 2024 was as follows:
| Region | Percentage of Total Revenues |
|---|---|
| China (including Hong Kong) | 66% |
| United States | 3% |
| South Korea | 7% |
| Vietnam | 12% |
Stock Performance
As of March 22, 2024, the aggregate market value of QUALCOMM's common equity held by non-affiliates was $190 billion, based on the closing price of its common stock on that date.
Investment and Future Outlook
QUALCOMM has a strategic focus on the following areas:
- 5G technology expansion
- Artificial Intelligence (AI) integration
- Automotive technology advancements
- Internet of Things (IoT) solutions
- Cloud computing initiatives
In fiscal 2024, QUALCOMM's QCT (Qualcomm CDMA Technologies) segment saw a revenue increase of 9%, primarily driven by higher revenues from handsets and automotive sectors.
How QUALCOMM Incorporated (QCOM) Works
Company Overview
QUALCOMM Incorporated (QCOM) operates primarily through two segments: Qualcomm CDMA Technologies (QCT) and Qualcomm Technology Licensing (QTL). The QCT segment focuses on developing and supplying integrated circuits and system software for mobile devices, automotive systems, and the Internet of Things (IoT). The QTL segment is responsible for granting licenses to use portions of Qualcomm's extensive intellectual property portfolio, including patents essential for various wireless products.
Financial Performance (Fiscal Year 2024)
For the fiscal year ended September 29, 2024, QUALCOMM reported the following financial highlights:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Revenues (in millions) | $39,000 | $35,800 | +9% |
| Net Income (in millions) | $10,142 | $7,232 | +40% |
| Gross Margin | 56% | 56% | No Change |
| Basic EPS | $9.09 | $6.47 | +40% |
| Diluted EPS | $8.97 | $6.42 | +40% |
Segment Performance
QCT Segment
The QCT segment generated equipment and services revenues of $32,791 million, an increase from $30,028 million in fiscal 2023, primarily driven by:
- $2.7 billion increase in handsets revenue.
- Higher automotive revenues, amounting to $2,910 million, up from $1,872 million in 2023.
- IoT revenues decreased to $5,423 million from $5,940 million.
QTL Segment
The QTL segment achieved licensing revenues of $6,171 million, compared to $5,792 million in the previous year. Key changes include:
- Increase in estimated sales of 3G/4G/5G multimode products contributing $402 million.
- Decrease in estimated revenues per unit by $90 million.
Costs and Expenses
In fiscal 2024, QUALCOMM's costs and expenses were as follows:
| Type of Expense | 2024 (in millions) | 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Cost of Revenues | $17,060 | $15,869 | $1,191 |
| Research and Development | $8,893 | $8,818 | $75 |
| Selling, General and Administrative | $2,759 | $2,483 | $276 |
| Other Expenses | $179 | $862 | $(683) |
Cash Flow Overview
Cash flow from operating activities was $12,202 million in 2024, compared to $11,299 million in 2023. Key components include:
- Net income from continuing operations: $10,110 million
- Depreciation and amortization expense: $1,706 million
- Share-based compensation expense: $2,648 million
Market Presence and Geographic Revenue Distribution
QUALCOMM's revenues by geographic region for fiscal 2024 are as follows:
| Region | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| China (including Hong Kong) | $17,826 | 46% |
| United States | $9,686 | 25% |
| South Korea | $7,995 | 20% |
| Other Foreign | $3,455 | 9% |
Debt and Equity
As of September 29, 2024, QUALCOMM's long-term debt was $14,634 million. The breakdown of debt maturities is as follows:
| Maturity Year | Amount (in millions) |
|---|---|
| 2025 | $1,364 |
| 2027 | $2,000 |
| 2028 | $1,000 |
| After 2029 | $10,270 |
Stockholder Equity and Dividends
As of September 29, 2024, total stockholders’ equity was $26,274 million. QUALCOMM announced a cash dividend of $0.85 per share on October 16, 2024, payable on December 19, 2024.
How QUALCOMM Incorporated (QCOM) Makes Money
Revenue Streams
QUALCOMM Incorporated generates revenue primarily through two business segments: Qualcomm CDMA Technologies (QCT) and Qualcomm Technology Licensing (QTL). As of fiscal year 2024, total revenues were reported at $39.0 billion, a 9% increase from $35.8 billion in fiscal 2023.
| Segment | Revenue (in millions) | Change from 2023 (in millions) |
|---|---|---|
| QCT (Equipment and Services) | $32,791 | $2,763 |
| QTL (Licensing) | $6,171 | $379 |
| Total Revenues | $38,962 | $3,142 |
QCT Segment Overview
The QCT segment is responsible for the design and supply of integrated circuits and system software. As of 2024, the breakdown of QCT revenues is as follows:
| Revenue Source | Revenue (in millions) | Change from 2023 (in millions) |
|---|---|---|
| Handsets | $24,863 | $2,293 |
| Automotive | $2,910 | $1,038 |
| Internet of Things (IoT) | $5,423 | $(517) |
| Total QCT Revenues | $33,196 | $2,814 |
QTL Segment Overview
The QTL segment contributes significantly to QUALCOMM's profitability through licensing agreements for its extensive patent portfolio. In 2024, QTL revenues reached:
| Revenue Source | Revenue (in millions) | Change from 2023 (in millions) |
|---|---|---|
| Licensing Revenues | $5,572 | $266 |
QTL's earnings before tax (EBT) for fiscal 2024 was $4,027 million, representing a margin of 72%.
Cost Structure
QUALCOMM's cost of revenues for fiscal 2024 amounted to $17,060 million, maintaining a gross margin of 56%.
| Cost Category | Amount (in millions) |
|---|---|
| Cost of Revenues | $17,060 |
| Research and Development | $8,893 |
| Selling, General and Administrative | $2,759 |
| Other Expenses | $179 |
| Total Costs and Expenses | $28,891 |
Investment and Other Income
QUALCOMM also earns income from investments and other non-operating activities. In fiscal 2024, investment and other income was reported at $962 million, an increase of $613 million from the previous year.
Geographic Revenue Distribution
In fiscal 2024, QUALCOMM's revenues were geographically distributed as follows:
| Region | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| China (including Hong Kong) | $17,826 | 46% |
| United States | $9,686 | 25% |
| South Korea | $7,995 | 20% |
| Other foreign | $3,455 | 9% |
| Total | $38,962 | 100% |
Net Income and Earnings Per Share
QUALCOMM reported a net income of $10,142 million for fiscal 2024, resulting in a basic earnings per share of $9.09.
| Metric | Value |
|---|---|
| Net Income (in millions) | $10,142 |
| Basic Earnings Per Share | $9.09 |
| Diluted Earnings Per Share | $8.97 |
Conclusion
QUALCOMM's diversified revenue streams, strong licensing agreements, and effective cost management strategies position the company for continued growth in the competitive semiconductor and telecommunications market.
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Resources:
- QUALCOMM Incorporated (QCOM) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of QUALCOMM Incorporated (QCOM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View QUALCOMM Incorporated (QCOM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.