19 unchanged sentences
Total 15,620 15,620
−Removed: (1) Average Price Paid Per Share excludes cash paid for commissions.
−Removed: (2) On October 12, 2021, we announced a $10.0 billion stock repurchase program.
−Removed: At September 29, 2024, $1.0 billion remained authorized for repurchase under this stock repurchase program.
−Removed: On November 6, 2024, we announced a new $15.0 billion stock repurchase authorization, which is in addition to the aforementioned program.
−Removed: The stock repurchase programs have no expiration date .
+Added: (1) Average Price Paid Per Share excludes cash paid for commissions and excise taxes.
+Added: (2) On November 6, 2024, we announced a $15.0 billion stock repurchase program, which has no expiration date .
Shares withheld to satisfy statutory tax withholding requirements related to the vesting of share-based awards are not issued or considered stock repurchases under our stock repurchase program and, therefore, are excluded from the table above.
13 unchanged sentences
Our Business and Operating Segments
−Removed: We develop and commercialize foundational technologies and products used in mobile devices and other wireless products.
+Added: We develop and commercialize foundational technologies and products used across industries and applications from mobile devices to other areas including automotive and the internet of things (IoT).
We derive revenues principally from sales of integrated circuit products and licensing our intellectual property, including patents and other rights.
2 unchanged sentences
Our QSI (Qualcomm Strategic Initiatives) reportable segment makes strategic investments.
−Removed: We also have nonreportable segments, including QGOV (Qualcomm Government Technologies) and our cloud computing processing initiative.
+Added: We also have nonreportable segments, including QGOV (Qualcomm Government Technologies) and our Data Center business (formerly referred to as our cloud computing processing initiative).
Further information regarding our business and operating segments is provided in “Part I, Item 1.
2 unchanged sentences
Our revenues have historically fluctuated based on consumer demand for devices, as well as on the timing of customer/licensee device launches and/or innovation cycles (such as the transition to the next generation of wireless technologies).
−Removed: This has resulted in fluctuations in QCT revenues in advance of and during device launches incorporating our products and in QTL revenues when licensees’ sales occur.
+Added: This has resulted in fluctuations in QCT revenues in advance of and during device launches incorporating our products (for example, certain major handset OEMs accelerated their premium-tier device launches into the first quarter of fiscal 2025) and in QTL revenues when licensees’ sales occur.
These trends may or may not continue in the future.
1 unchanged sentence
Fiscal 2025 Overview
−Removed: Revenues were $39.0 billion, an increase of 9% compared to revenues of $35.8 billion in fiscal 2023, with net income of $10.1 billion, an increase of 40% compared to net income of $7.2 billion in fiscal 2023.
−Removed: Our fiscal 2024 results included:
−Removed: • QCT revenues increased by 9% in fiscal 2024 compared to the prior year, primarily due to higher handsets and automotive revenues, partially offset by lower IoT revenues.
−Removed: • QTL revenues increased by 5% in fiscal 2024 compared to the prior year, primarily due to an increase in estimated sales of 3G/4G/5G-based multimode products.
−Removed: • We recorded other expenses of $179 million in fiscal 2024 compared to $862 million in fiscal 2023, both of which primarily consisted of restructuring and restructuring-related charges.
−Removed: • Investment and other income, net increased by $613 million in fiscal 2024 compared to the prior year, primarily due to higher interest rates earned on higher balances of interest-bearing securities.
+Added: Revenues were $44.3 billion, an increase of 14% compared to revenues of $39.0 billion in fiscal 2024, with net income of $5.5 billion, a decrease of 45% compared to net income of $10.1 billion in fiscal 2024.
+Added: Key items from fiscal 2025 included:
+Added: • QCT revenues increased by 16% in fiscal 2025 compared to the prior year, primarily due to higher handsets, IoT and automotive revenues.
+Added: • QTL revenues remained approximately flat in fiscal 2025 compared to the prior year.
+Added: • We recorded a charge of $5.7 billion to income tax expense to establish a valuation allowance in the fourth quarter of fiscal 2025 as we no longer expect to realize substantially all of our existing federal deferred tax assets as a result of the tax reform legislation included in the One Big Beautiful Bill Act (OBBB) enacted on July 4, 2025.
Results of Operations
6 unchanged sentences
+ $5.1 billion in higher equipment and services revenue from our QCT segment
−Removed: + $266 million in higher licensing revenues from our QTL segment
+Added: + $143 million in licensing revenues resulting from a settlement of a licensing dispute in the second quarter of fiscal 2025, which was not allocated to our segment results
Costs and Expenses (in millions, except percentages)
2 unchanged sentences
Gross margin 55 % 56 %
−Removed: Gross margin percentage remained flat in fiscal 2024.
+Added: Gross margin percentage decreased in fiscal 2025 primarily due to a decrease in the proportion of total revenues related to QTL licensing revenues (which have a higher margin percentage contribution).
2025 2024 Change
1 unchanged sentence
% of revenues 20 % 23 %
−Removed: The increase in research and development expenses in fiscal 2024 was due to:
−Removed: + $113 million increase in share-based compensation expense
−Removed: + $66 million increase in expenses driven by revaluation of our deferred compensation obligation (which resulted in a corresponding increase in net gains on deferred compensation plan assets within investment and other income, net due to the revaluation of the related assets)
−Removed: - $104 million decrease driven by lower costs related to the development of wireless and integrated circuit technologies (including 5G and application processor technologies).
−Removed: This was primarily driven by a decrease in employee-related costs as a result of certain restructuring actions taken to fund continued investments in key growth and diversification opportunities, partially offset by higher employee cash incentive program costs.
+Added: The increase in research and development expenses in fiscal 2025 was primarily due to a $118 million increase in share-based compensation expense.
+Added: Our costs related to the development of wireless and integrated circuit technologies (including investments in key growth and diversification initiatives) remained approximately flat, primarily driven by $314 million in higher non-recurring engineering cost reimbursements for product-related development work, partially offset by an increase in employee-related costs.
2025 2024 Change
2 unchanged sentences
The increase in selling, general and administrative expenses in fiscal 2025 was primarily due to:
−Removed: + $99 million increase in sales and marketing expenses
−Removed: + $42 million increase in expenses driven by revaluation of our deferred compensation obligation
−Removed: + $39 million increase in share-based compensation expense
+Added: + $231 million increase in sales and marketing expenses (including investments in key growth and diversification initiatives)
+Added: + $70 million increase in employee-related expenses
2025 2024 Change
1 unchanged sentence
$ 39 $ 179 $ (140)
−Removed: Other expenses in fiscal 2024 consisted primarily of $107 million in restructuring and restructuring-related charges (substantially all of which related to severance costs) and a $75 million charge related to the settlement of the securities class action lawsuit.
−Removed: Other expenses in fiscal 2023 consisted of $712 million in total restructuring and restructuring-related charges (substantially all of which related to severance costs, resulting from certain cost reduction actions committed to in fiscal 2023 and a $150 million intangible asset impairment charge related to in-process research and development.
+Added: Other expenses in fiscal 2025 consisted of restructuring and restructuring-related charges.
+Added: Other expenses in fiscal 2024 primarily consisted of $107 million in restructuring and restructuring-related charges (substantially all of which related to severance costs) and a $75 million charge related to the settlement of a securities class action lawsuit.
Interest Expense and Investment and Other Income, Net (in millions)
9 unchanged sentences
$ 972 $ 962 $ 10
−Removed: The increase in interest and dividend income in fiscal 2024 was primarily due to higher interest rates earned on higher balances of interest-bearing securities.
−Removed: Net gains on other investments in fiscal 2024 was primarily driven by certain of our QSI non-marketable equity investments.
+Added: Net gains on marketable securities in fiscal 2025 was primarily driven by the initial public offerings of certain QSI equity investments.
+Added: Net gains on other investments in fiscal 2024 was primarily driven by observable price changes on certain of our QSI non-marketable equity investments.
Income Tax Expense (in millions, except percentages)
1 unchanged sentence
federal statutory rate.
−Removed: Substantially all of our income is taxed in the U.S., of which a significant portion qualifies for preferential treatment as FDII at a 13% effective tax rate.
−Removed: Additional information regarding our annual effective tax rate (including discussion related to the impact of the requirement to capitalize research and development expenditures for federal income tax purposes, and the benefit related to the transfer of intellectual property between foreign subsidiaries) is provided in this Annual Report in “Notes to Consolidated Financial Statements, Notes 3.
+Added: Substantially all of our income is taxed in the U.S., of which a significant portion qualifies for preferential treatment as foreign-derived intangible income (FDII) at a 13% effective tax rate for the periods presented.
+Added: Additional information regarding our annual effective tax rate (including discussion related to the impact of the requirement to capitalize research and development expenditures for federal income tax purposes, and the benefit related to the transfer of intellectual property between foreign subsidiaries in fiscal 2024) is provided in this Annual Report in “Notes to Consolidated Financial Statements, Note 3.
Income Taxes.”
Expected income tax provision at federal statutory tax rate $ 2,659 $ 2,171
+Added: Valuation allowance on federal deferred tax assets resulting from OBBB 5,724 —
Benefit from FDII deduction, excluding the impact of capitalizing research and development expenditures (735) (596)
Benefit from FDII deduction related to capitalizing research and development expenditures (492) (585)
−Removed: Benefit related to the transfer of intellectual property between foreign subsidiaries (317) —
Benefit related to the research and development tax credit (237) (259)
−Removed: Excess tax (benefit) deficiency associated with share-based awards (176) 3
−Removed: Foreign currency gains related to foreign withholding tax receivable (21) (66)
−Removed: Benefit from fiscal 2021 and 2022 FDII deductions related to a change in sourcing of research and development expenditures — (126)
−Removed: Benefit from releasing valuation allowance on unutilized foreign loss carryforwards — (114)
+Added: Excess tax benefit associated with share-based awards (120) (176)
+Added: Foreign currency losses (gains) related to foreign withholding tax receivable 98 (21)
+Added: Benefit related to the transfer of intellectual property between foreign subsidiaries (8) (317)
Income tax expense $ 7,122 $ 226
Effective tax rate 56 % 2 %
−Removed: The OECD has announced a framework to implement a global minimum tax of 15% (referred to as Pillar Two).
−Removed: Certain countries have implemented or are in the process of implementing the Pillar Two legislation, which will apply to us beginning in fiscal year 2025.
−Removed: While we do not currently expect this to materially impact our consolidated financial statements, we continue to monitor the impact as countries implement legislation and the OECD provides additional guidance.
−Removed: Discontinued Operations (in millions)
−Removed: 2024 2023 Change
−Removed: Discontinued operations, net of income taxes $ 32 $ (107) $ 139
−Removed: Discontinued operations in fiscal 2024 and 2023 primarily related to the Non-Arriver businesses.
−Removed: Fiscal 2023 also included a gain on the sale of the Active Safety business and certain write-down charges related to the Restraint Control Systems business, the individual and aggregate amounts of which were not material.
−Removed: Information regarding the Non-Arriver businesses is provided in this Annual Report in “Notes to Consolidated Financial Statements, Note 2.
−Removed: Composition of Certain Financial Statement Items.”
+Added: On July 4, 2025, tax reform legislation included in the OBBB was enacted in the United States.
+Added: The OBBB includes significant corporate tax reforms, including the permanent reinstatement of deducting domestic research and development expenditures as incurred beginning in fiscal 2026 (under prior law such expenditures were capitalized and amortized over five years).
+Added: The legislation also modifies international tax provisions, including changes to the FDII regime.
+Added: Specifically, it renames FDII as Foreign-Derived Deduction Eligible Income (FDDEI), maintains the current FDDEI effective tax rate of 13% through fiscal 2026 and adjusts the FDDEI effective tax rate to a permanent 14% rate in fiscal 2027 (compared to 16% under prior law).
+Added: As a result of these changes, we expect to be subject to the corporate alternative minimum tax (CAMT) beginning in fiscal 2026.
+Added: CAMT imposes a 15% federal minimum tax on adjusted financial statement income, reduced by general business credits, including research and development credits.
+Added: As we expect to perpetually be subject to CAMT, we no longer expect to realize substantially all of our existing federal deferred tax assets and recognized a charge of $5.7 billion to income tax expense to establish a valuation allowance in the fourth quarter of fiscal 2025.
+Added: Beginning in fiscal 2023 and through fiscal 2025, for federal income tax purposes, we were required to capitalize and amortize domestic research and development expenditures over five years (such expenditures were previously deducted as incurred).
+Added: Our cash flows from operations were adversely affected due to significantly higher cash tax payments.
+Added: However, since the resulting deferred tax asset was established at the statutory rate of 21% (rather than the current effective tax rate of 13% after considering the FDII deduction), capitalization favorably affected our total provision for income taxes and results of operations.
+Added: With the enactment of OBBB, such impacts on our cash flows and tax provision are not expected to continue beginning in fiscal 2026.
+Added: Changes in future taxable income (including less of our income qualifying for preferential treatment as FDDEI), tax laws (including changes to the CAMT rules) and other factors may change our determination regarding whether we will be able to realize our deferred tax assets.
Segment Results
3 unchanged sentences
2025 2024 Change
−Removed: $ 24,863 $ 22,570 $ 2,293
−Removed: 2,910 1,872 1,038
+Added: Handsets $ 27,793 $ 24,863 $ 2,930
+Added: Automotive 3,957 2,910 1,047
IoT (internet of things) 6,617 5,423 1,194
−Removed: 5,423 5,940 (517)
Total revenues (1)
1 unchanged sentence
$ 11,670 $ 9,527 $ 2,143
−Removed: EBT as a % of revenues 29 % 26 % 3 points
+Added: EBT as a % of revenues 30 % 29 % 1 point
(1) Descriptions of our three QCT revenue streams can be found in this Annual Report in “Notes to Consolidated Financial Statements, Note 2.
Composition of Certain Financial Statement Items.”
−Removed: (2) Earnings (loss) before income taxes.
+Added: (2) Earnings before income taxes.
Substantially all of QCT’s revenues consist of equipment and services revenues, which were $37.7 billion and $32.6 billion in fiscal 2025 and 2024, respectively.
−Removed: QCT handsets, automotive and IoT revenues mostly relate to sales of our Snapdragon platforms (which include processors and modems), stand-alone Mobile Data Modems, radio frequency transceiver, power management and wireless connectivity integrated chipsets as well as sales of 4G, 5G sub 6 and 5G millimeter wave RFFE products.
+Added: QCT revenues mostly relate to sales of our Snapdragon and Dragonwing platforms (which include processors and modems), stand-alone Mobile Data Modems, radio frequency transceiver, power management and wireless connectivity integrated chipsets as well as sales of 4G, 5G sub 6 and 5G millimeter wave RFFE products.
The increase in QCT revenues in fiscal 2025 was primarily due to:
−Removed: + higher handsets revenues, due to $2.8 billion in higher chipset shipments driven by certain major OEMs (primarily driven by the normalization of customer inventory levels, which were elevated in the prior year), partially offset by $533 million in lower revenues per chipset primarily driven by unfavorable mix
−Removed: + higher automotive revenues, primarily driven by an increase in demand from new vehicle launches with our Snapdragon digital cockpit and connectivity products
−Removed: - lower IoT revenues, due to $834 million in lower revenues per unit primarily driven by unfavorable mix, partially offset by a $317 million increase in demand (primarily in consumer products, partially offset by edge networking products as customers continued drawing down on their elevated inventory levels)
−Removed: QCT EBT as a percentage of revenues increased in fiscal 2024 primarily due to higher revenues.
−Removed: Gross margin percentage remained flat in fiscal 2024.
+Added: + higher handsets revenues, due to $2.5 billion in higher revenues per chipset primarily driven by higher average selling prices and favorable mix, and $423 million in higher chipset shipments by certain major OEMs, both of which benefited from an increase in demand for premium-tier Snapdragon platforms in Android devices
+Added: + higher IoT revenues due to $1.5 billion in higher shipments across edge networking, consumer and industrial products, partially offset by unfavorable mix
+Added: + higher automotive revenues, primarily driven by an increase in shipments from new vehicle launches with our Snapdragon digital cockpit products
+Added: QCT EBT as a percentage of revenues increased in fiscal 2025 primarily due to:
+Added: + higher revenues
+Added: - higher operating expenses, primarily driven by higher selling, general and administrative expenses
+Added: Gross margin percentage remained approximately flat in fiscal 2025, primarily driven by higher product costs, partially offset by higher average selling prices.
QTL Segment (in millions, except percentages)
2 unchanged sentences
EBT 4,043 4,027 16
−Removed: EBT as a % of revenues 72 % 68 % 4 points
−Removed: The increase in QTL licensing revenues in fiscal 2024 was primarily due to:
−Removed: + $402 million increase in estimated sales of 3G/4G/5G-based multimode products
−Removed: - $90 million decrease in estimated revenues per unit
−Removed: - $68 million decrease in revenues from the ending of the recognition of certain upfront license fee consideration in the first quarter of fiscal 2023 from our long-term license agreement with Nokia
−Removed: QTL EBT as a percentage of revenues increased in fiscal 2024 primarily due to:
−Removed: + lower cost of sales driven by a decrease in amortization expense related to acquired patents
−Removed: + higher revenues
+Added: EBT as a % of revenues 72 % 72 % —
+Added: QTL licensing revenues and EBT remained approximately flat in fiscal 2025.
+Added: During the second quarter of fiscal 2025, we executed final agreements for new long-term licenses with two key Chinese OEMs (for which the initial terms had expired) and entered into comprehensive 4G and 5G license agreements with Transsion (a growing, China-headquartered OEM that sells primarily in developing regions).
+Added: As a result of our agreements with Transsion, all outstanding litigation between the parties has been dismissed.
+Added: Beginning in the second quarter of fiscal 2025, QTL revenues did not include royalties from Huawei, whose license agreement has expired.
QSI Segment (in millions)
1 unchanged sentence
Equipment and services revenues $ — $ 18 $ (18)
−Removed: QSI EBT increased in fiscal 2024 primarily due to net gains on certain of our non-marketable equity investments.
+Added: QSI EBT increased in fiscal 2025 primarily due to higher net gains on marketable securities resulting from the initial public offerings of certain of our equity investments, partially offset by lower net gains from observable price changes on certain of our non-marketable equity investments.
Looking Forward
−Removed: We believe that 5G combined with high-performance, low-power computing and on-device artificial intelligence will continue to drive adoption of certain technologies that are already commonly used in smartphones by industries and applications beyond mobile handsets, such as automotive and IoT.
−Removed: We believe it is important that we remain a leader in 5G technology development, standardization, intellectual property creation and licensing, and a leading developer and supplier of 5G integrated circuit products in order to sustain and grow our business long-term.
+Added: We believe that on-device AI and high-performance, low-power computing combined with cellular technology (such as 5G) will continue to drive adoption of certain technologies that are already commonly used in smartphones by industries and applications beyond mobile handsets, such as automotive and IoT.
+Added: We believe it is important that we remain a leader in such technology development, standardization, intellectual property creation and licensing, and a leading developer and supplier of integrated circuit products in order to sustain and grow our business long-term.
As we look forward to the next several quarters:
−Removed: • We expect transitions to new generations of leading process technology nodes to continue to drive product cost increases from certain of our key semiconductor wafer suppliers.
−Removed: • We expect continued intense competition, including from vertical integration by certain of our customers (e.g., Apple).
−Removed: • Current U.S./China trade relations and/or national security protection policies may negatively impact our business, growth prospects and results of operations.
−Removed: See “Risk Factors” in this Annual Report, including the Risk Factor titled “ A significant portion of our business is concentrated in China, and the risks of such concentration are exacerbated by U.S./China trade and national security tensions.”
−Removed: In fiscal 2024, we extended, renewed or entered into license agreements with several key OEMs.
−Removed: We are currently pursuing negotiations with other key OEMs whose agreements expire in early fiscal 2025 (including Huawei).
−Removed: In addition, in fiscal 2024, we entered into a license agreement with Shenzhen Transsion Holdings Limited (a growing, China-headquartered OEM that sells primarily in developing regions) for its 5G products.
−Removed: While we continue to engage in negotiations toward a comprehensive resolution, we have initiated litigation against Transsion in multiple jurisdictions to enforce our intellectual property rights against certain of its unlicensed products.
−Removed: See “Risk Factors” in this Annual Report, including the Risk Factors titled “ The continued and future success of our licensing programs requires us to continue to evolve our patent portfolio and to renew or renegotiate license agreements that are expiring ” and “The enforcement and protection of our intellectual property may be expensive, could fail to prevent misappropriation or unauthorized use of our intellectual property, could result in the loss of our ability to enforce one or more patents, and could be adversely affected by changes in patent laws, by laws in certain foreign jurisdictions that may not effectively protect our intellectual property and by ineffective enforcement of laws in such jurisdictions.
−Removed: We are also involved in other legal proceedings, including those described in this Annual Report in “Notes to Consolidated Financial Statements, Note 7.
+Added: • We continue to monitor the recent changes in global trade policy, including tariffs and related trade actions announced by the U.S., China and other countries.
+Added: The degree to which such tariffs and other related actions impact our business, financial condition and results of operations will depend on future developments, which are uncertain.
+Added: Changes to global trade policies may negatively impact demand, pricing and cost for our products and technologies, and contribute to the inherent uncertainties in estimating future customer demand, which may result in increased excess or obsolete inventory or reserve charges, negatively impacting our results of operations and cash flows.
+Added: See “Part I, Item 1A.
+Added: Risk Factors” in this Annual Report, including the Risk Factor titled “ We operate in the highly cyclical semiconductor industry, which is subject to significant downturns.
+Added: We are also susceptible to declines in global, regional and local economic conditions generally.
+Added: Our stock price and financial results are subject to substantial quarterly and annual fluctuations due to these dynamics, among others.
+Added: • We expect leading process technology nodes to continue to drive product cost increases from certain of our key semiconductor wafer suppliers.
+Added: • We expect continued intense competition, including from vertical integration by certain of our customers (for example, Apple and Samsung).
+Added: In particular, Apple began utilizing its own modem (rather than our products) in its recently released smartphones and we expect that Apple will increasingly use its own modem products, rather than our products, in its future devices, which will have a significant negative impact on our QCT revenues, results of operations and cash flows.
+Added: • We expect to continue investing in key growth and diversification initiatives.
+Added: We also expect our share-based compensation expense to increase as we have replaced our annual cash incentive awards for fiscal 2026 and 2027 with a two-year equity award for our broader non-executive leadership team.
+Added: This approach is designed to motivate and retain our team to execute our long-term diversification strategy, while further aligning their compensation with the interests of our stockholders.
+Added: • U.S./China trade relations and/or national security protection policies may negatively impact our business, growth prospects and results of operations.
+Added: See “Part I, Item 1A.
+Added: Risk Factors” in this Annual Report, including the Risk Factor titled “ A significant portion of our business is concentrated in China, and the risks of such concentration are exacerbated by U.S./China trade and national security tensions.”
+Added: We are also involved in certain legal proceedings, including those described in this Annual Report in “Notes to Consolidated Financial Statements, Note 7.
Commitments and Contingencies.” Litigation is inherently uncertain, and, while we intend to continue to vigorously defend ourselves in such matters, the unfavorable resolution of one or more of these matters could have a material adverse effect on our business, results of operations, financial condition or cash flows.
5 unchanged sentences
Liquidity and Capital Resources
−Removed: Our principal sources of liquidity are our existing cash, cash equivalents and marketable securities, cash generated from operations and cash provided by our debt programs, which we believe will satisfy our working and other capital requirements for at least the next 12 months based on our current business plans.
+Added: Our principal sources of liquidity are our existing cash, cash equivalents and marketable securities (including restricted cash), cash generated from operations and cash provided by our debt programs, which we believe will satisfy our working and other capital requirements for at least the next 12 months based on our current business plans.
The following table presents selected financial information related to our liquidity as of and for the years ended September 28, 2025 and September 29, 2024 (in millions):
1 unchanged sentence
2025 September 29,
−Removed: Cash, cash equivalents and marketable securities
+Added: Cash, cash equivalents and marketable securities (including restricted cash)
Cash and cash equivalents
+Added: $ 5,520 $ 7,849 $ (2,329)
+Added: Restricted cash (1)
+Added: 2,323 — 2,323
Marketable securities 4,635 5,451 (816)
−Removed: Cash, cash equivalents and marketable securities $ 13,300 $ 11,324 $ 1,976
$ 12,478 $ 13,300 $ (822)
−Removed: (1) Excludes $77 million of cash and cash equivalents classified as held for sale at September 24, 2023.
+Added: $ 14,811 $ 14,634 $ 177
+Added: (1) In connection with our pending acquisition of Alphawave IP Group plc (Alphawave), we agreed to restrict the use of approximately $2.3 billion of cash to be held for purposes of satisfying payment of the consideration to effect the acquisition.
+Added: Additional information regarding our pending acquisition of Alphawave is provided in this Annual Report in “Notes to Consolidated Financial Statements, Note 9.
+Added: Acquisitions.”
(2) Includes our issued debt reported as long-term and short-term.
+Added: At September 28, 2025, we had $15.1 billion of principal fixed-rate notes outstanding with maturity dates between 2027 and 2053.
2025 2024 Change
Net cash provided by operating activities $ 14,012 $ 12,202 $ 1,810
−Removed: Net cash (used) provided by investing activities
+Added: Net cash used by investing activities
(800) (3,623) 2,823
Net cash used by financing activities (13,196) (9,269) (3,927)
−Removed: Cash, cash equivalents and marketable securities.
−Removed: The net increase in cash, cash equivalents and marketable securities in fiscal 2024 was primarily due to net cash provided by operating activities and $383 million in proceeds from the issuance of common stock (primarily under our Employee Stock Purchase Plan), partially offset by $4.1 billion in payments to repurchase shares of our common stock, $3.7 billion in cash dividends paid, $1.0 billion in capital expenditures, $932 million in payments of tax withholdings related to the vesting of share-based awards and $914 million in repayments of notes that matured in May 2024.
−Removed: During fiscal 2024, income taxes paid were in excess of our provision, negatively impacting net cash provided by operating activities.
−Removed: This was primarily driven by the adverse impact of the requirement to capitalize and amortize research and development expenditures for federal income tax purposes, our payment of $1.0 billion related to certain previously postponed U.S.
−Removed: federal income tax payments from fiscal 2023 and an installment payment for a one-time U.S.
−Removed: repatriation tax accrued in fiscal 2018 of $414 million.
−Removed: Net changes in our operating assets and liabilities positively impacted our operating cash flows in fiscal 2024 primarily from an increase in accrued customer incentives, which included the impact of timing of related payments, and an increase in accounts payable due to timing and amount of inventory purchases, partially offset by an increase in accounts receivable due to higher revenues.
−Removed: At September 29, 2024 , we had $15.0 billion of principal fixed-rate notes outstanding, $1.4 billion of which matures in May 2025.
−Removed: The remaining debt has maturity dates in 2027 through 2053.
+Added: Cash, cash equivalents and marketable securities (including restricted cash).
+Added: The net decrease in cash, cash equivalents and marketable securities (including restricted cash) in fiscal 2025 was primarily due to $8.8 billion in payments to repurchase shares of our common stock, $3.8 billion in cash dividends paid, $1.4 billion repayment of unsecured fixed-rate notes that matured in May 2025, $1.2 billion in capital expenditures, $1.1 billion in payments of tax withholdings related to the vesting of share-based awards and $743 million in cash paid for acquisitions and other investments.
+Added: This was partially offset by cash provided by operating activities, proceeds from the issuance of $1.5 billion of unsecured fixed-rate notes in May 2025 and $404 million in proceeds from the issuance of common stock (primarily under our Employee Stock Purchase Plan).
+Added: During fiscal 2025, income taxes paid were less than our provision.
+Added: This was driven primarily by the $5.7 billion charge to income tax expense to establish a valuation allowance in fiscal 2025 as a result of the tax reform legislation included in the OBBB.
+Added: This was partially offset by our installment payment for a one-time U.S.
+Added: repatriation tax accrued in fiscal 2018 of $530 million and the adverse impact of the requirement to capitalize and amortize research and development expenditures for federal income tax purposes.
+Added: The enactment of the OBBB includes significant corporate tax reforms, including the permanent reinstatement of deducting domestic research and development expenditures as incurred beginning in fiscal 2026.
+Added: We expect this change will have a favorable effect on our cash flows from operations due to lower cash tax payments compared to fiscal 2025 beginning in fiscal 2026.
+Added: Net changes in our operating assets and liabilities positively impacted our operating cash flows in fiscal 2025 primarily from a decrease in other assets driven by the utilization of prior advanced supply agreement payments, partially offset by an increase in accounts receivables primarily driven by higher revenues.
+Added: During the third quarter of fiscal 2025, we repaid $1.4 billion of unsecured fixed-rate notes that matured in May 2025.
+Added: In May 2025, we also issued $1.5 billion of unsecured fixed-rate notes, consisting of $500 million of 4.50% notes, $400 million of 4.75% notes and $600 million of 5.00% notes (collectively, May 2025 Notes) that mature on May 20, 2030, May 20, 2032 and May 20, 2035, respectively.
+Added: The net proceeds from the May 2025 Notes will be used for general corporate purposes.
+Added: We also entered into interest rate swaps which are designated as fair value hedges and allow us to effectively convert all of our fixed-rate payments due under the May 2025 Notes into floating-rate payments.
We have an unsecured commercial paper program, which provides for the issuance of up to $4.5 billion of commercial paper.
1 unchanged sentence
At September 28, 2025 , we had no amounts of commercial paper outstanding.
−Removed: On August 8, 2024, we entered into a Revolving Credit Facility, replacing our prior Amended and Restated Revolving Credit Facility.
−Removed: The Revolving Credit Facility provides for unsecured revolving facility loans, swing line loans and letters of credit in an aggregate amount of up to $4.0 billion, which expires on August 8, 2029.
+Added: We also have a Revolving Credit Facility that provides for unsecured revolving facility loans, swing line loans and letters of credit in an aggregate amount of up to $4.0 billion, which expires on August 8, 2029.
At September 28, 2025 , no amounts were outstanding under the Revolving Credit Facility.
1 unchanged sentence
The amount and timing of any such new debt will depend on a number of factors, including but not limited to maturities of our existing debt, acquisitions and strategic investments, favorable and/or acceptable interest rates and changes in corporate income tax law.
−Removed: Additional information regarding our outstanding debt at September 29, 2024 is provided in this Annual Report in “Notes to Consolidated Financial Statements, Note 6.
−Removed: Income Taxes.
−Removed: At September 29, 2024 , our remaining future payments were $1.0 billion for a one-time U.S.
−Removed: repatriation tax accrued in fiscal 2018, after application of certain tax credits, which is payable in installments over the next two years.
−Removed: At September 29, 2024 , other current liabilities included $530 million for the next installment due in January 2025.
−Removed: Beginning in fiscal 2023, for federal income tax purposes, we are required to capitalize and amortize domestic research and development expenditures over five years and foreign research and development expenditures over fifteen years (such expenditures were previously deducted as incurred).
−Removed: As a result, our cash flows from operations are adversely affected due to significantly higher cash tax payments.
−Removed: However, the adverse cash flow impact will diminish in future years as capitalized research and
−Removed: development expenditures continue to amortize.
−Removed: Additional information regarding our income taxes is provided in this Annual Report in “Notes to Consolidated Financial Statements, Note 3.
−Removed: Income Taxes.”
+Added: Additional information regarding our debt is provided in this Annual Report in “Notes to Consolidated Financial Statements, Note 6.
Capital Return Program.
−Removed: The following table summarizes stock repurchases and dividends paid during fiscal 2024 and 2023 (in millions, except per-share amounts):
+Added: The following table summarizes stock repurchases (including excise taxes paid) and dividends paid during fiscal 2025 and 2024 (in millions, except per-share amounts):
Stock Repurchase Program Dividends Total
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2024 25 161.37 4,121 3.30 3,687 7,808
−Removed: On October 12, 2021, we announced a $10.0 billion stock repurchase program.
−Removed: At September 29, 2024, $1.0 billion remained authorized for repurchase under this stock repurchase program.
−Removed: On November 6, 2024, we announced a new $15.0 billion stock repurchase authorization, which is in addition to the aforementioned program.
−Removed: The stock repurchase programs have no expiration date.
−Removed: The timing of stock repurchases and the number of shares of common stock to be repurchased will depend upon prevailing market conditions and other factors.
+Added: At September 28, 2025, $7.2 billion remained authorized for repurchase under our stock repurchase program.
+Added: Our stock repurchases were at an increased level in fiscal 2025 compared to fiscal 2024.
+Added: The timing of future stock repurchases and the number of shares of common stock to be repurchased will depend upon prevailing market conditions and other factors.
Repurchases may be made in the open market, through 10b5-1 programs, through accelerated share repurchase programs, in privately negotiated transactions or through the use of derivative instruments.
Our stock repurchase programs are subject to periodic evaluations to determine when and if repurchases are in the best interests of our stockholders, and we may accelerate, suspend, delay or discontinue repurchases at any time.
−Removed: On October 16, 2024, we announced a cash dividend of $0.85 per share on our common stock, payable on December 19, 2024 to stockholders of record as of the close of business on December 5, 2024.
We currently intend to continue to use cash dividends as a means of returning capital to stockholders, subject to capital availability and our view that cash dividends are in the best interests of our stockholders, among other factors.
+Added: Additional information regarding our capital returns is provided in this Annual Report in “Notes to Consolidated Financial Statements, Note 4.
+Added: Capital Stock.”
Additional Capital Requirements .
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• Cash outflows for capital expenditures were $1.2 billion in fiscal 2025 and $1.0 billion in fiscal 2024.
−Removed: We expect capital expenditures to increase from fiscal 2024 in the near term to support our production and testing needs related to our growth and diversification initiatives.
+Added: We expect capital expenditures to increase from fiscal 2025 in the near term primarily to support the testing of our integrated circuits.
• Amounts related to future lease payments for operating lease obligations at September 28, 2025 totaled $1.1 billion, with $142 million expected to be paid within the next 12 months.
+Added: • On June 9, 2025, we announced that we reached an agreement to acquire Alphawave at an implied enterprise value of approximately $2.4 billion (as of the announcement date).
+Added: The purchase price will be paid in cash or, if validly elected by eligible shareholders of Alphawave, in shares of our common stock or securities exchangeable for shares of our common stock.
+Added: The acquisition is subject to certain closing conditions, including receipt of regulatory approvals.
+Added: Subject to the satisfaction of these conditions, this acquisition is expected to complete during the first quarter of calendar 2026.
• We expect to continue making strategic investments and acquisitions, the amounts of which could vary significantly.
−Removed: Further, regulatory authorities in certain jurisdictions have investigated our business practices and instituted proceedings against us in the past, and they or other regulatory authorities may do so in the future.
−Removed: Additionally, certain of our direct and indirect customers and licensees have pursued, and others may in the future pursue, litigation or arbitration against us related to our business.
−Removed: Unfavorable resolutions of one or more of these matters have had and could in the future have a material adverse effect on our business, revenues, results of operations, financial condition and cash flows.
+Added: Further, regulatory authorities in certain jurisdictions have investigated our business practices and instituted proceedings against us, and they or other regulatory authorities may do so in the future.
+Added: Additionally, certain of our direct and indirect customers and licensees have pursued, and they or others may in the future pursue, litigation, arbitration or other strategies against us related to our business.
+Added: Unfavorable resolutions of one or more of these matters have had and could in the future have a material adverse effect on our business, results of operations, financial condition and cash flows.
See “Notes to Consolidated Financial Statements, Note 7.
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Critical Accounting Estimates
−Removed: The preparation of our consolidated financial statements in accordance with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities.
+Added: The preparation of our consolidated financial statements in accordance with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent amounts.
We base our estimates on historical and anticipated results and trends and on various other assumptions that we believe are reasonable under the circumstances, including assumptions as to future events.
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Composition of Certain Financial Statement Items” included in this Annual Report in “Notes to Consolidated Financial Statements” for further information.
−Removed: If the impact of changes in our critical accounting estimates are material or considered necessary to understand our results of operations for the periods presented, then such information is disclosed within this Annual Report in “Item 7.
+Added: If the impact of changes in our critical accounting estimates is material or considered necessary to understand our results of operations for the periods presented, then such information is disclosed within this Annual Report in “Part II, Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
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Impairment of Non-marketable Equity Investments.
−Removed: We monitor our investments for events or circumstances that could indicate impairment, including those that result from observable price adjustments.
+Added: We monitor our investments, many of which are in early-stage companies, for events or circumstances that could indicate impairment, including those that result from observable price adjustments.
Key considerations in this assessment include the investee’s financial and liquidity position and business forecasts (including their ability to respond to any significant deterioration), industry performance, development and/or market acceptance of the investee’s products or technologies, as well as considering any appreciation in fair value that has not been recognized in the carrying values of such investments and other relevant events and factors.
+Added: Measurement of any impairments may require the use of unobservable inputs.
In fiscal 2025 and 2024, there were no significant impairment losses or adjustments to our previous judgments and estimates recorded.
−Removed: We measure inventory at the lower of cost or net realizable value considering judgments and estimates related to future customer demand and other market conditions, such as the impact of the macroeconomic environment in fiscal 2023, which negatively impacted consumer demand for smartphones and other devices that incorporate our products and technologies.
+Added: We measure inventory at the lower of cost or net realizable value considering judgments and estimates related to future customer demand and other market conditions, such as the impact of the macroeconomic environment and global trade policies.
Although we believe these estimates are reasonable, any significant changes in customer demand that are less favorable than our previous estimates may require additional inventory write-downs and would be reflected in cost of sales resulting in a negative impact to our gross margin in that period.
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Impairment of Goodwill, Other Indefinite-Lived Assets and Long-Lived Assets .
−Removed: We monitor our goodwill, other indefinite-lived assets and long-lived assets for the existence of impairment indicators and apply judgments in the valuation methods and underlying assumptions utilized in such assessments.
−Removed: During fiscal 2024, there were no material impairment charges for long-lived or indefinite-lived assets.
−Removed: During fiscal 2023, we recorded total impairment charges of approximately $400 million related to certain long-lived and other indefinite-lived assets.
−Removed: Such impairments (and the related remaining asset values) were not individually material.
+Added: We monitor our goodwill, other indefinite-lived assets and long-lived assets for the existence of impairment indicators and apply judgments in the valuation methods (generally income or market approach) and underlying inputs and assumptions utilized in such assessments, which are generally unobservable inputs.
+Added: During fiscal 2025 and 2024, there were no material impairment charges for long-lived or indefinite-lived assets.
Additionally, the estimated fair values of our QCT and QTL reporting units, based on our qualitative assessment, were substantially in excess of their respective carrying values at September 28, 2025.
Legal and Regulatory Proceedings.
+Added: We are currently involved in certain legal and regulatory proceedings, the outcomes of which are inherently uncertain.
+Added: If there is at least a reasonable possibility that a material loss may have been incurred associated with pending legal and regulatory proceedings, we disclose such fact.
We record our best estimate of a loss related to pending legal and regulatory proceedings when the loss is considered probable and the amount can be reasonably estimated.
We face difficulties in evaluating or estimating likely outcomes and/or the amount of possible loss in certain legal and regulatory proceedings.
+Added: Until the final resolution of such matters, there may be an exposure to loss in excess of the amount recorded (or the possible loss disclosed), and such amounts could be material.
Income Taxes.
−Removed: We make significant judgments and estimates in determining our provision for income taxes, including our assessment of our income tax positions given the uncertainties involved in the interpretation and application of complex tax laws and regulations in various taxing jurisdictions.
+Added: We make significant judgments and estimates in determining our provision for income taxes, including our assessment of our income tax positions, both in the U.S.
+Added: and foreign jurisdictions, given the uncertainties involved in the interpretation and application of complex tax laws and regulations in various taxing jurisdictions.
+Added: While we believe we have appropriate support for the positions we have taken or plan to take on our tax returns, we regularly assess the potential outcomes of examinations by taxing authorities in determining the adequacy of our provision for income taxes based on the technical merits of the position.
+Added: The actual liability for U.S.
+Added: or foreign taxes may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities.
+Added: Based on our results for fiscal 2025, an assumed one-percentage point increase to our annual effective tax rate would result in an increase in income tax expense of $127 million.
+Added: Deferred tax assets represent amounts available to reduce income taxes payable on taxable income in future years.
+Added: Under the OBBB enacted in July 2025, we expect to be subject to CAMT beginning in fiscal 2026 and therefore, we no longer expect to realize substantially all of our existing federal deferred tax assets.
+Added: As a result, we recorded a charge of $5.7 billion to income tax expense to establish a valuation allowance against such deferred tax assets in the fourth quarter of fiscal 2025.
+Added: Factors considered in this determination included assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies, and considering that substantially all of our income is taxed in the U.S., of which a significant portion qualifies for preferential treatment as FDDEI.
+Added: Changes in future taxable income (including less of our income qualifying for preferential treatment as FDDEI), tax laws (including changes to the CAMT rules) and other factors may change our determination regarding whether we will be able to realize our deferred tax assets.
Recent Accounting Pronouncements
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.