Qualcomm reported fiscal Q2 FY26 results on April 29 2026, posting total revenue of $10.599 billion—slightly above the consensus estimate of $10.58 billion—and adjusted earnings per share of $2.65, beating the consensus of $2.56 by $0.09. The earnings beat was driven by a 38% year‑over‑year increase in automotive revenue to $1.33 billion and a 9% rise in IoT revenue to $1.73 billion, offsetting a 13% decline in handset sales to $6.02 billion.
The QCT segment’s total revenue fell 4% year‑over‑year to $9.08 billion, while the licensing (QTL) segment grew 5% to $1.38 billion. QCT’s earnings‑before‑tax margin contracted to 27% from 30% in the prior year, reflecting the impact of lower handset volumes and a shift toward lower‑margin automotive and IoT products. QTL maintained a robust 72% EBT margin, up from 70% year‑ago, driven by a favorable mix of high‑margin licensing deals and flat global handset unit volumes.
"We are pleased to deliver results in line with our guidance, reflecting solid execution as we navigate a challenging memory environment," said President and CEO Cristiano Amon. "We are in a period of profound industry transformation — the rise of AI agents is reshaping our roadmap across every platform we develop." CFO Akash Palkhiwala added, "QTL revenues of $1.4 billion, EBT margin of 72%, came in at the high end of our guidance driven by favorable mix with global handset units approximately flat on a year‑over‑year basis." He also noted, "QCT revenues of $9.1 billion, EBT margin of 27%, in line with our expectations."
Qualcomm guided fiscal Q3 revenue to a range of $9.2 billion to $10 billion, below the consensus estimate of $10.62 billion, and adjusted EPS to $2.10 to $2.30, also trailing expectations. Management cited ongoing memory supply constraints that are dampening handset demand, which is reflected in the lower revenue outlook for the next quarter.
Market reaction was positive, with the company’s shares rising 4% in after‑hours trading. The lift was driven by the EPS beat, the robust growth in automotive and IoT segments, and the announcement of a new $20 billion share‑repurchase authorization. The guidance shortfall tempered enthusiasm, as investors weighed the near‑term headwinds from handset demand against the company’s diversification strategy.
Qualcomm’s results underscore a strategic shift away from the cyclical handset market toward higher‑margin automotive, IoT, and data‑center silicon businesses. The strong performance of non‑handset segments, coupled with a disciplined cost structure that preserved margins, supports the company’s long‑term growth trajectory and reinforces confidence in its capital return program. The entry into data‑center custom silicon, with initial shipments expected later in the year, signals a new revenue stream that could further diversify the company’s portfolio in the coming years.
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