QUALCOMM Incorporated stock research
FY2025 Q3
QUALCOMM (QCOM) Gross Margin — Quarter Ended Jun 29, 2025
Revenue and gross profit both decreased from the prior quarter, while cost of revenue declined at a slightly faster rate, resulting in a marginal improvement in gross margin. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was also higher, and gross margin remained stable.
Gross margin takeaway
Quarter ended Jun 29, 2025 · FY2025 Q3
Revenue and gross profit both decreased from the prior quarter, while cost of revenue declined at a slightly faster rate, resulting in a marginal improvement in gross margin. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was also higher, and gross margin remained stable.
- The strongest observable margin driver is the relationship between cost of revenue and revenue; cost of revenue declined more than revenue sequentially, which supported the slight gross margin improvement.
- Sequentially, revenue and gross profit were lower, but gross margin improved slightly as cost of revenue decreased at a faster pace. Year-over-year, revenue and gross profit were higher, cost of revenue was higher, and gross margin was unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.6%
Gross profit
$5.8B
Revenue
$10.4B
Cost of revenue
$4.6B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
-0.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 29, 2024 | $10.2B | $5.8B | $4.5B | 56.4% |
| Dec 29, 2024 | $11.7B | $6.5B | $5.2B | 55.8% |
| Mar 30, 2025 | $11.0B | $6.0B | $4.9B | 55.0% |
| Jun 29, 2025 | $10.4B | $5.8B | $4.6B | 55.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 30, 2025
+0.5 pts
Year-over-year change
Jun 23, 2024
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between cost of revenue and revenue; cost of revenue declined more than revenue sequentially, which supported the slight gross margin improvement.
Sequentially, revenue and gross profit were lower, but gross margin improved slightly as cost of revenue decreased at a faster pace. Year-over-year, revenue and gross profit were higher, cost of revenue was higher, and gross margin was unchanged.
Monitor the trajectory of cost of revenue relative to revenue, as the sequential decline in cost of revenue was the key factor behind the gross margin improvement.