Qualcomm reported results in line with guidance, driven by strong performance in Automotive and IoT segments, despite a challenging memory environment impacting handset revenues. The company is strategically positioning for future growth through AI agent transformation and data center engagements, while returning significant capital to shareholders.
QCT Automotive revenues reached a record high, growing 38% year-over-year.
positiveCombined QCT Automotive and IoT revenues grew 20% year-over-year, showcasing diversification.
positiveCompleted $5.4 billion in share repurchases in the first half of fiscal 2026 and announced a new $20 billion authorization.
positiveGAAP Net Income increased 162% year-over-year to $7.37 billion, largely due to a significant income tax benefit.
positiveTotal revenues decreased 3% year-over-year to $10.6 billion, primarily driven by a 13% decline in Handsets.
negativeQCT operating income decreased 14% year-over-year to $2.465 billion, with a 3-point margin compression.
attentionInventories increased by $842 million sequentially to $7.368 billion, indicating potential channel build-up.
attentionGuidance for Q3 FY2026 revenues is estimated between $9.2B - $10.0B, representing a potential sequential decline from Q2.
attentionNon-GAAP diluted EPS decreased 7% year-over-year to $2.65, despite a 162% increase in GAAP EPS.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
QCT | N/A | — | — | — |
QTL | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Solid execution navigating a challenging memory environment.
Period of profound industry transformation driven by AI agents reshaping roadmaps.
Excited by entry into data center with hyperscaler custom silicon engagement on track.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.