Common-Size Income Statement
Quarterly Data
Qualcomm Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2025-12-28), 10-K (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-Q (reporting date: 2024-12-29), 10-K (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-23), 10-Q (reporting date: 2024-03-24), 10-Q (reporting date: 2023-12-24), 10-K (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-Q (reporting date: 2022-12-25), 10-K (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27), 10-Q (reporting date: 2021-12-26), 10-K (reporting date: 2021-09-26), 10-Q (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28), 10-Q (reporting date: 2020-12-27), 10-K (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-Q (reporting date: 2019-12-29).
The financial performance, as represented by common-size income statements, exhibits notable fluctuations over the observed period from December 2019 to September 2025. Revenue consistently represents 100% of itself, as expected. A significant portion of revenue is consistently attributed to equipment and services, generally ranging between 69% and 86%, with a general upward trend observed from 2022 onwards. Licensing revenue, while substantial, demonstrates a decreasing trend over the period, falling from approximately 30% of revenue in late 2019 to around 15% in late 2023 and stabilizing around 14-16% in 2024 and 2025.
- Cost of Revenues
- Cost of revenues as a percentage of revenue remains relatively stable, fluctuating between -33% and -44%. A slight increase in this percentage is observed towards the end of the period, reaching approximately -45% in September 2025. This suggests potential pressure on cost management or changes in the cost structure of goods sold.
- Gross Profit
- Gross profit as a percentage of revenue mirrors the cost of revenue trend, generally ranging between 55% and 60%. A peak is observed in September 2020 at 66.87%, followed by a decline and a subsequent stabilization around 55-56% in the later periods. This suggests a correlation with fluctuations in cost of revenues.
- Operating Expenses (R&D and SG&A)
- Research and development (R&D) expenses consistently represent a significant portion of revenue, generally between 18% and 31%. A noticeable increase in R&D spending as a percentage of revenue is observed in 2023 and 2024, peaking at 31.06% in June 2020 and again at 26.29% in March 2023. Selling, general, and administrative (SG&A) expenses are also substantial, typically ranging from 5% to 10%. A marked increase in SG&A expenses is evident in late 2025, reaching 8.07% in September 2025, potentially indicating increased operational costs.
- Operating Income
- Operating income demonstrates significant variability, ranging from a low of 15.98% in June 2020 to a high of 41.37% in September 2020. A general downward trend is observed from 2021 through 2023, followed by a slight recovery in 2024 and 2025. This suggests that operating profitability is sensitive to changes in revenue, cost of goods sold, and operating expenses.
- Net Income
- Net income as a percentage of revenue follows a similar pattern to operating income, fluctuating considerably. A substantial decline is observed in September 2025, with net income falling to -27.66% of revenue, likely influenced by a significant increase in income tax expense during that period. Prior to this, net income generally ranged between 8% and 32%. The presence of discontinued operations, while minimal for most periods, introduces a slight fluctuation in net income in later quarters.
- Interest and Other Income
- Interest expense remains relatively consistent as a percentage of revenue, generally between -1% and -3%. Investment and other income exhibits more volatility, with both positive and negative values observed. A notable positive impact from investment and other income is seen in September 2021 (5.58%) and December 2024 (3.51%).
Overall, the financial performance demonstrates a cyclical pattern with periods of strong profitability (e.g., September 2020) followed by periods of lower profitability (e.g., 2023). The increasing trend in equipment and services revenue, coupled with the decreasing trend in licensing revenue, suggests a potential shift in the company’s revenue model. The significant fluctuations in net income, particularly the negative value in September 2025, warrant further investigation.