QCOM: Qualcomm Beats Q2 — But Pays $75M Over Anticompetitive Claims

QCOM: Qualcomm Beats Q2 — But Pays $75M Over Anticompetitive Claims

2025-07-15Technology
--:--
--:--
纪飞
Good morning 老张, I'm 纪飞.
国荣
And I'm 国荣. It's Wednesday, July 16th. Welcome to Goose Pod, where today we're dissecting Qualcomm's very mixed news.
纪飞
Let's get started. Qualcomm posted fantastic Q2 results: revenue hit $10.84 billion, up 15%, with earnings per share at $2.85. Both numbers comfortably beat expectations, signaling real market strength for their chip sector.
国荣
But, at the same time, they agreed to pay a $75 million settlement! It's like acing an exam and getting detention on the same day. This news mixes a huge win with a reminder of old troubles.
纪飞
This story starts in 2017 when the FTC accused Qualcomm of anticompetitive tactics. The main issue was their 'no license, no chips' policy. Essentially, customers couldn't buy their popular chips without also buying their patent licenses.
国荣
Right, the classic bundle! They also allegedly gave Apple special discounts for an exclusive deal, which would freeze out competitors. It sounds like they were playing hardball to maintain their top spot in the market.
纪飞
Indeed. A district court initially sided with the FTC in 2019, but in a surprising twist, the Ninth Circuit Court of Appeals reversed that decision. The higher court said the behavior was 'hypercompetitive' but not proven to be illegally anticompetitive.
国荣
So legally, they were cleared of monopoly abuse by the higher court. That makes the settlement even more interesting. It’s a very tangled history for a company that’s inside almost every smartphone.
纪飞
That's the core conflict. If they won the appeal against the FTC, why pay $75 million now? The key is this settlement isn't for the FTC case. It's for a separate lawsuit filed by investors back in 2017.
国荣
Ah, so this is a different battle! What was the investors' argument then? If the practices weren't illegal, what was the problem?
纪飞
Their lawsuit claimed Qualcomm *misled* them. They argued the company wasn't transparent about its aggressive sales tactics. So when the FTC's accusations became public, the stock dropped 18%, and investors lost money unexpectedly.
国荣
I get it now. It’s not about the act itself, but about failing to disclose the risks to shareholders. It’s like a car company not telling investors that their super-fast engine design might attract a lot of speeding tickets!
国荣
So what’s the real impact today? Despite the fine, Citi raised its price target to $170. It seems Wall Street is more impressed by the strong earnings than worried about the settlement. The good news is just bigger.
纪飞
Exactly. To a company earning $10.8 billion in one quarter, $75 million is a manageable cost to end a long-standing distraction. It removes uncertainty, which the market loves. The 'Hold' rating from Citi does suggest some caution remains, though.
纪飞
Looking ahead, this settlement allows Qualcomm to focus on its growth in automotive tech and 5G. For shareholders who held stock between 2012 and 2024, it offers a chance to recover some losses by filing a claim.
纪飞
That's the end of today's discussion. Thank you for listening to Goose Pod.
国荣
See you tomorrow.

## Qualcomm (QCOM) Faces Dual Developments: Strong Q2 Results Offset by $75M Settlement This news report from **TradingView**, published on **July 11, 2025**, details two significant developments for Qualcomm (QCOM): a strong performance in its fiscal Q2 2025 and a substantial settlement for investor claims related to anticompetitive practices. ### Key Developments: * **Strong Fiscal Q2 2025 Results:** * **Revenue:** Qualcomm reported **$10.84 billion** in revenue, representing a **15.45% year-over-year (YoY) increase**. This figure surpassed analyst expectations. * **Earnings Per Share (EPS):** The company posted an EPS of **$2.85**, also exceeding forecasts. * **Analyst Reaction:** Following these positive results, **Citi** raised its price target for Qualcomm from **$145 to $170**. Citi cited the sector's resilience to tariffs, increased demand, and inventory restocking as reasons for the upgrade. However, Citi maintained a **"Hold" rating** on the stock. * **$75 Million Settlement for Investor Lawsuit:** * **Nature of Claims:** Qualcomm has agreed to a **$75 million settlement** to resolve allegations that it misled investors regarding its anticompetitive business practices and weak financial reporting controls. * **Origin of Accusations:** The lawsuit stems from accusations made by the **Federal Trade Commission (FTC)** in **2017**. These accusations included: * Overcharging for licenses. * Refusing to sell chips to certain companies. * Offering discounts to Apple for exclusive chip usage. * **Market Impact:** On **January 19, 2017**, Qualcomm's stock (QCOM) dropped **18.3%** following the FTC's news. The investor lawsuit was filed four days later. * **Eligibility for Claims:** Investors who purchased Qualcomm stock between **February 1, 2012, and November 8, 2024**, are eligible to file a claim for compensation. ### News Identifiers: * **Case:** S.D. California Case: 3:17-cv-00121 * **Ticker:** QCOM (NASDAQ) In summary, while Qualcomm demonstrated robust financial performance in its latest quarterly report, exceeding expectations and prompting a price target increase from Citi, it simultaneously addressed a significant legal liability by agreeing to a substantial settlement for past alleged anticompetitive practices that misled investors.

QCOM: Qualcomm Beats Q2 — But Pays $75M Over Anticompetitive Claims

Read original at TradingView

Court: S.D. California Case: 3:17-cv-00121📈 Citi Raises Price Target After Strong Q2 ResultsQualcomm QCOM beat expectations in its fiscal Q2 2025 report, posting $10.84B in revenue (up 15.45% YoY) and $2.85 EPS, both above forecasts.Following the report, Citi raised its price target from $145 to $170, citing the sector’s resilience to tariffs, stronger demand, and inventory restocking.

Still, it maintained a Hold rating on the stock.⚖️ At the same time, Qualcomm settles investor lawsuit for $75MQualcomm also agreed to a $75 million settlement to resolve claims it misled investors about anticompetitive practices and weak financial reporting controls.The case stems from 2017, when the FTC accused Qualcomm of:Overcharging for licensesRefusing to sell chips to some companiesOffering Apple discounts for exclusive chip useOn January 19, 2017, QCOM dropped 18.

3% following the news. Four days later, investors filed the now-settled lawsuit.Investors who bought between February 1, 2012 and November 8, 2024 can still file a claim.You can check more information about the QCOM settlement and file for payment HERE.

Analysis

Phenomenon+
Conflict+
Background+
Impact+
Future+

Related Podcasts