Summary
Qualcomm Inc./DE (QCOM) reported total revenues of $12.25 billion for the first quarter of fiscal 2026, a 5% increase year-over-year, driven by growth in both its Equipment and Services (QCT) and Licensing (QTL) segments. QCT revenues rose 5% to $10.61 billion, primarily due to higher shipments in handsets, automotive, and IoT. QTL revenues grew 4% to $1.59 billion, supported by increased cellular product sales. Despite the revenue growth, net income saw a 6% decrease to $3.0 billion, or $2.78 per diluted share, compared to $3.18 billion in the prior year. This decrease was influenced by higher operating expenses, including increased R&D and SG&A costs, and a slight decrease in the QCT gross margin percentage. The company completed the significant acquisition of Alphawave IP Group plc for $2.3 billion to bolster its expansion into data centers. Qualcomm also continues to return capital to shareholders, repurchasing $2.65 billion of its common stock and paying $949 million in dividends during the quarter. The outlook remains cautious due to expected memory supply constraints impacting handset demand and continued intense competition, including vertical integration by key customers. Management anticipates these factors will negatively affect financial results in the coming quarters.
Financial Highlights
46 data points| Revenue | $12.25B |
| Cost of Revenue | $5.57B |
| Gross Profit | $6.68B |
| R&D Expenses | $2.45B |
| SG&A Expenses | $865.00M |
| Operating Expenses | $8.89B |
| Operating Income | $3.37B |
| Interest Expense | $169.00M |
| Net Income | $3.00B |
| EPS (Basic) | $2.81 |
| EPS (Diluted) | $2.78 |
| Shares Outstanding (Basic) | 1.07B |
| Shares Outstanding (Diluted) | 1.08B |
Key Highlights
- 1Total revenues increased 5% year-over-year to $12.25 billion, driven by strong performance in QCT and QTL segments.
- 2QCT segment revenue grew 5% to $10.61 billion, supported by increased shipments in handsets, automotive, and IoT.
- 3QTL segment revenue increased 4% to $1.59 billion, primarily due to higher estimated sales of cellular products.
- 4Net income decreased 6% to $3.00 billion, translating to $2.78 in diluted EPS, compared to $3.18 billion and $2.83 in the prior year, respectively.
- 5The company completed the acquisition of Alphawave IP Group plc for $2.3 billion to expand its presence in the data center market.
- 6Qualcomm returned significant capital to shareholders through $2.65 billion in stock repurchases and $949 million in dividend payments.
- 7Management forecasts challenges from memory supply constraints affecting handset demand and ongoing competitive pressures, including customer vertical integration.