QCT IoTThin moat

Qualcomm (QCOM) — moat facet

PCs, glasses, routers and scanners: a line that recovered from its bust but has not yet become a second engine.

IoT is Qualcomm's catch-all for chips that are not in phones or cars. It had revenue of $6,617 million in fiscal 2025, up 22% from $5,423 million in fiscal 2024 1, and 15% of the company 2. The filing lists what is inside: consumer products including PCs, XR and other personal computing devices, edge networking including mobile broadband and wireless access points, and industrial products including handhelds, retail, tracking and logistics and utilities 3.

IoT revenue ($m)$5,056mFY2021*$6,948mFY2022*$5,940mFY2023$5,423mFY2024$6,617mFY2025Qualcomm Forms 10-K FY2022, FY2024, FY2025; *presentation used then, before RFFE was folded into the streams
A boom, two down years and a recovery that has not yet passed fiscal 2022.

It is priced like the handset business, per chip sold to device makers, but across many more customers and smaller volumes. The same processor, modem and neural engine designs are reused across these markets, which is why Qualcomm can enter PCs or smart glasses without building a new chip team for each.

The history is a boom, a bust and a recovery. On the presentation used then, IoT revenue was $5,056 million in fiscal 2021 and $6,948 million in fiscal 2022 4, when pandemic demand for connected devices peaked. On the current presentation it was $5,940 million in fiscal 2023 and $5,423 million in fiscal 2024 5, as customers worked through inventory. Fiscal 2025 took it back above 2023.

Profit is not disclosed for the stream; it sits inside QCT's 30% pre-tax margin 6. Revenue per unit is the lever the filing points to: in the June 2026 quarter the increase was primarily from higher revenue per unit on favourable mix 7.

Growth has slowed. IoT revenue was $1,830 million in the June 2026 quarter against $1,681 million, up 9%, and $5,244 million in the nine months against $4,811 million 8, also up 9%. Snapdragon X PC chips are in this line, and so is the smart-glasses business, and neither yet shows as a step change.

The line matters because it is the largest of the two growing streams, and the $40 billion non-handset target for fiscal 2029 needs it to grow far faster than 9%. The test is the next fiscal year's growth rate: back above 20%, and PCs and XR are working; near 10%, and IoT is a cyclical recovery rather than the second engine the target assumes.

Moat trajectory: Holding steady

IoT revenue grew 22% in fiscal 2025 and 9% in the first nine months of fiscal 2026.

The number that tests this moat
Moat Explorer calc
IoT revenue growth, latest quarter
+9% in Q3 fiscal 2026 ($1,830M against $1,681M)

The fiscal 2029 non-handset target needs this line growing well above 20%; near 10% it is a cyclical recovery.

How it's calculated: IoT revenue Q3 fiscal 2026 / Q3 fiscal 2025 - 1
Source: Qualcomm Form 10-Q, Q3 fiscal 2026 ↗
References
  1. ReportedIt had revenue of $6,617 million in fiscal 2025, up 22% from $5,423 million in fiscal 2024 , and 15% of the company .
    Qualcomm Form 10-K FY2025 - QCT revenue streams (handsets, automotive, IoT) and EBT, QTL revenue and EBT for fiscal 2024-2025; revenue stream definitions; segment reconciliation; customers at 10% or more (Apple, Samsung, Xiaomi); licensing agreements with two Chinese OEMs and Transsion; Huawei licence expiry — FY2024-FY2025 · publ. 5 November 2025 · source ↗
  2. Moat Explorer calcIt had revenue of $6,617 million in fiscal 2025, up 22% from $5,423 million in fiscal 2024 , and 15% of the company .
    Moat Explorer calculation from Qualcomm's Forms 10-K and 10-Q: shares of revenue and segment profit, growth rates — FY2021 to Q3 FY2026 · publ. 2026-09-23 · source ↗
  3. ReportedThe filing lists what is inside: consumer products including PCs, XR and other personal computing devices, edge networking including mobile broadband and wireless access points, and industrial products including handhelds, retail, tracking and logistics and utilities .
    Qualcomm Form 10-K FY2025 - QCT revenue streams (handsets, automotive, IoT) and EBT, QTL revenue and EBT for fiscal 2024-2025; revenue stream definitions; segment reconciliation; customers at 10% or more (Apple, Samsung, Xiaomi); licensing agreements with two Chinese OEMs and Transsion; Huawei licence expiry — FY2024-FY2025 · publ. 5 November 2025 · source ↗
  4. ReportedOn the presentation used then, IoT revenue was $5,056 million in fiscal 2021 and $6,948 million in fiscal 2022 , when pandemic demand for connected devices peaked.
    Qualcomm Form 10-K FY2022 - QCT revenue by handsets, RFFE, automotive and IoT for fiscal 2021-2022 on the presentation used then; QTL revenue and EBT — FY2021-FY2022 · publ. November 2022 · source ↗
  5. ReportedOn the current presentation it was $5,940 million in fiscal 2023 and $5,423 million in fiscal 2024 , as customers worked through inventory.
    Qualcomm Form 10-K FY2024 - QCT revenue streams and EBT for fiscal 2023-2024; QTL revenue and EBT for fiscal 2023-2024 — FY2023-FY2024 · publ. November 2024 · source ↗
  6. ReportedProfit is not disclosed for the stream; it sits inside QCT's 30% pre-tax margin .
    Qualcomm Form 10-K FY2025 - QCT revenue streams (handsets, automotive, IoT) and EBT, QTL revenue and EBT for fiscal 2024-2025; revenue stream definitions; segment reconciliation; customers at 10% or more (Apple, Samsung, Xiaomi); licensing agreements with two Chinese OEMs and Transsion; Huawei licence expiry — FY2024-FY2025 · publ. 5 November 2025 · source ↗
  7. ReportedRevenue per unit is the lever the filing points to: in the June 2026 quarter the increase was primarily from higher revenue per unit on favourable mix .
    Qualcomm Form 10-Q, quarter ended 28 June 2026 - QCT revenue streams, QTL revenue and EBT, and the drivers of each for the quarter and nine months — Q3 FY2026 · publ. 29 July 2026 · source ↗
  8. ReportedIoT revenue was $1,830 million in the June 2026 quarter against $1,681 million, up 9%, and $5,244 million in the nine months against $4,811 million , also up 9%.
    Qualcomm Form 10-Q, quarter ended 28 June 2026 - QCT revenue streams, QTL revenue and EBT, and the drivers of each for the quarter and nine months — Q3 FY2026 · publ. 29 July 2026 · source ↗
Sources
Generated September 23, 2026