Early Access

10-QPeriod: Q2 FY2022

QUALCOMM INC/DE Quarterly Report for Q2 Ended Mar 27, 2022

Filed April 27, 2022For Securities:QCOM

Summary

Qualcomm Inc. reported strong financial results for the second quarter and first six months of fiscal year 2022, with total revenues reaching $11.16 billion and $21.87 billion, respectively. This represents significant year-over-year growth, driven primarily by a substantial increase in equipment and services revenue from the QCT segment. Net income also saw robust growth, reflecting improved operational performance and strategic execution. The company highlighted the strong performance of its QCT segment, which saw revenue growth across handsets, RFFE, automotive, and IoT. This growth was attributed to increased average selling prices, a favorable product mix towards higher-tier 5G products, and increased demand, particularly from major OEMs. The QTL segment showed a slight sequential decline in licensing revenue but maintained a strong EBT margin. Qualcomm also successfully closed the acquisition of Veoneer's Arriver business, strengthening its position in the automotive sector. Despite facing ongoing supply chain complexities and intense competition, Qualcomm remains optimistic about future growth, expecting continued strength in QCT revenues and expansion into new markets driven by 5G technology. The company continues to return capital to shareholders through share repurchases and dividend increases, underscoring its commitment to shareholder value.

Financial Statements
Beta
Revenue$11.16B
Cost of Revenue$4.65B
Gross Profit$6.52B
R&D Expenses$2.03B
SG&A Expenses$624.00M
Operating Expenses$7.31B
Operating Income$3.86B
Interest Expense$137.00M
Net Income$2.93B
EPS (Basic)$2.61
EPS (Diluted)$2.57
Shares Outstanding (Basic)1.13B
Shares Outstanding (Diluted)1.14B

Key Highlights

  • 1Total revenues increased by 41% to $11.16 billion in Q2 fiscal 2022 compared to the prior year quarter.
  • 2Net income surged by 67% to $2.93 billion in Q2 fiscal 2022 compared to the prior year quarter.
  • 3QCT (Qualcomm CDMA Technologies) segment revenue increased by 52% year-over-year, driven by strong performance in handsets, RFFE, automotive, and IoT.
  • 4Licensing revenues from the QTL (Qualcomm Technology Licensing) segment remained relatively stable sequentially but saw an increase in EBT margin.
  • 5The company successfully closed the acquisition of Veoneer's Arriver business on April 1, 2022, enhancing its automotive ADAS platform capabilities.
  • 6Qualcomm announced a 10% increase in its quarterly dividend per share, effective after March 24, 2022, and continued its share repurchase program with $9.1 billion remaining authorized.
  • 7Despite supply chain challenges, the company anticipates continued revenue growth for QCT throughout the remainder of fiscal year 2022.

Frequently Asked Questions