Qualcomm announced a 3.4% increase in its quarterly cash dividend, raising the payment to $0.92 per share. The dividend will be paid on June 25 2026 to shareholders of record on June 4 2026, and the company has added a $20 billion share‑repurchase authorization to its long‑term capital‑return program, which also includes roughly $2.1 billion remaining from a prior $20 billion program announced in November 2024.
The dividend hike comes on the back of record financial results for the first quarter of fiscal 2026. Total company revenue reached $12.3 billion, up 5% year‑over‑year, while non‑GAAP earnings per share were $3.50, a 3% increase that beat analyst expectations of $3.38‑$3.40. Qualcomm’s QCT segment generated $10.6 billion in revenue, up 5% YoY, with automotive sales at $1.1 billion (+15%) and IoT revenue at $1.7 billion (+9%).
Management highlighted the company’s continued momentum in high‑growth areas. "Consistent with our commitment to return capital to our stockholders, we are pleased that our Board has approved an increase to our quarterly dividend and a new stock repurchase authorization," said President and CEO Cristiano Amon. He added, "While we continue to extend our technology and product leadership across verticals, we remain focused on stockholder returns and executing on our ongoing diversification opportunities while maintaining operating discipline." Amon also noted, "Our momentum across personal, industrial and physical AI is growing, evidenced by recent product announcements at CES and customer traction."
Despite the strong results, Qualcomm faces short‑term headwinds. Memory supply constraints are limiting handset production, which could dampen future revenue growth in the legacy smartphone market. However, the company is positioning itself for long‑term growth through AI, automotive, and IoT initiatives, all of which are showing robust demand and higher margins than the legacy handset business.
The capital‑return package underscores Qualcomm’s confidence in its cash‑generation capacity and its belief that the stock is undervalued. The $20 billion buyback authorization, which has no expiration, provides the company with flexibility to return excess cash to shareholders while supporting the share price. Combined with a history of 21‑23 consecutive dividend increases, the announcement signals a strong commitment to shareholder value and a solid financial footing as Qualcomm expands beyond its traditional smartphone focus.
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