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.ꦓ67 billion, up 17% year-over-year, and profit of $3.18 billion, or $2.𒅌83 per share, topping Visible Alpha estimates.

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 ไQ1 segment revenue. B🔴y 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.