By Nisha Gopalan

SOPA Images / Contributor / Getty Images

Qualcomm (QCOM) stock is falling 5% in premarket trading Thursday, a day after the company’s lower-than-estimated licensing revenue offset record quarterly sales.

The chipmaker reported fiscal 2025 first-quarter revenue of $11.67 billion, up 17% year-over-year, and profit of $3.18 billion, or $2.83 per share, topping Visible Alpha estimates.

Related read

• Apple's Earnings Top Estimates as Services Revenue Grows, But iPhone Sales Fall Short

• Signage outside Microsoft campus. Microsoft Stock Slips as Intelligent Cloud Revenue Falls Short of Expectations

However, investors seemed to focus on Qualcomm's licensing, or QTL, revenue of $1.54 billion, which came in a tick below estimates. Qualcomm licenses its patented technologies to companies including Apple (AAPL), and QTL is a key business for the chipmaker, with earnings before taxes (EBT) of 75% of Q1 segment revenue. By comparison, the much larger semiconductor segment, QCT, had EBT of 32% of segment revenue.

Qualcomm shares had gained 22% over the past 12 months through Wednesday's close.

Source: Investopedia

More stories

• 1 Market-Beating ETF That Doesn't Have Nvidia, Microsoft, or Apple Among Its Top 3 Holdings

• Buy Bitcoin If This Happens, Says Arthur Hayes

• Where to invest $10,000 right now, according to 6 experts

• Analysts overhaul Apple stock price targets after record Q1 earnings

• 10 best high-yield savings accounts for December 2024: up to 4.75% APY