QCT revenues increased by 20% YoY, driven by higher handsets, IoT and automotive revenues. This indicates successful diversification and growth in key target markets beyond traditional mobile handsets.

QTL revenues increased by 5% YoY. While still a positive increase it is significantly lower than the QCT revenue growth and indicates a potential slowdown in the licensing segment.

The company has recently entered into comprehensive 4G and 5G license agreements with Shenzhen Transsion Holdings Limited. As a result of these agreements, all outstanding litigation between the parties has been, or is in the process of being, dismissed.

Research and development expenses increased by $134 million year-over-year, representing 19% of revenues. This increase is driven by higher costs related to the development of wireless and integrated circuit technologies and investments in key growth and diversification opportunities.

The company repurchased 11 million shares of common stock for $1.8 billion during the quarter. This demonstrates management's commitment to returning capital to shareholders and confidence in the company's financial performance.

The company is involved in several legal proceedings, including the Arm Ltd. v. QUALCOMM Incorporated case. These proceedings require significant management time and financial resources, and the outcome is uncertain.

The company derives a significant portion of its revenues from a small number of customers and licensees, particularly from their sale of premium-tier handset devices. This concentration exposes the company to potential revenue fluctuations if these customers' sales decrease or the timing of such revenues fluctuates.

A significant portion of the company's business is concentrated in China, and the risks of such concentration are exacerbated by U.S./China trade and national security tensions. This could limit or prevent the company from transacting business with certain customers or suppliers.

The continued and future success of the company's licensing programs requires it to continue to evolve its patent portfolio and to renew or renegotiate license agreements that are expiring. Failure to do so could negatively impact licensing revenues.

The semiconductor industry is subject to intense competition and rapid technological change. The company's success depends on its ability to adapt to such change and compete effectively, which could result in decreased demand for its products and technologies or declining average selling prices.

The company's business, particularly its semiconductor business, may suffer as a result of its customers vertically integrating (i.e., developing their own integrated circuit products). This could significantly reduce the revenues the company derives from these customers.

The company believes that 5G combined with high-performance, low-power computing and on-device artificial intelligence will continue to drive adoption of certain technologies. The company is focusing on remaining a leader in these areas to sustain and grow its business long-term.

Gross margin percentage decreased in the first quarter of fiscal 2025 primarily due to a decrease in the proportion of total revenues related to QTL licensing revenues (which have a higher margin contribution).

The company depends on a limited number of third-party suppliers for the procurement, manufacture, assembly and testing of its products manufactured in a fabless production model. Failure to execute supply strategies that provide supply assurance could harm the business.

The company operates various facilities that manufacture certain of its RFFE modules and RF filter products. These facilities are characterized by a higher portion of fixed costs relative to a fabless model, which could impact profitability.

Research and development expenses increased in the first quarter of fiscal 2025, driven by higher costs related to the development of wireless and integrated circuit technologies, including investments in key growth and diversification opportunities.

The company is focused on developing and commercializing foundational technologies and products used in mobile devices and other wireless products, with a focus on 5G, high-performance computing, on-device AI, and automotive applications.

The company's growth depends in part on its ability to extend its technologies and products into new and expanded product areas, and industries and applications beyond mobile handsets. Failure to do so could negatively impact future results.

The company repurchased 11 million shares of common stock for $1.8 billion during the quarter. This demonstrates management's commitment to returning capital to shareholders and confidence in the company's financial performance.

On January 17, 2025, the company announced a cash dividend of $0.85 per share on its common stock, payable on March 27, 2025.

The company had capital expenditures of $277 million during the quarter. These expenditures are related to the operation and control of the company's manufacturing facilities.

Certain customers have adopted, and other customers may adopt, policies that require the company to achieve certain sustainability, climate or other environmental, social and governance (ESG)-related targets.

Climate change concerns and the potential resulting environmental impact may result in new environmental, health and safety laws and regulations that may affect the company, its suppliers and customers.

The company is subject to Regulations related to supply chain, responsible sourcing (including the use of conflict minerals) and human rights.

The company operates in the highly cyclical semiconductor industry, which is subject to significant downturns. This could result in substantial quarterly and annual fluctuations.

Geopolitical conflicts, natural disasters, pandemics and other health crises, and other factors outside of the company's control, could significantly disrupt its business.

The company's business is subject to various laws, rules and regulations globally, as well as government policies and the specifications of international, national and regional communications standards bodies.