Qualcomm's Q2 Performance for Fiscal Year 2026:
Total revenue was $10.599 billion, a year-over-year decrease of 3%.
Diluted earnings per share (EPS) were $6.88 (versus $2.52 in the prior period), representing a 173% year-over-year increase.
Net income amounted to $7.37 billion, marking a 162% year-over-year increase. Non-GAAP net income reached $2.84 billion, down 10% year-over-year, with Non-GAAP EPS at $2.65 (compared to $2.85 in the prior period).
Revenue from mobile phones totaled $6.024 billion, reflecting a 13% year-over-year decline.
IoT revenue stood at $1.726 billion, up 9% year-over-year; automotive revenue reached $1.326 billion, increasing by 38%; and technology licensing revenue amounted to $1.382 billion, up 5% year-over-year.
The company’s business outlook for the third quarter of fiscal year 2026 is as follows:
Total revenue guidance is set between $9.2 billion and $10 billion, with QCT revenue expected to range from $7.9 billion to $8.5 billion and QTL revenue forecasted between $1.15 billion and $1.35 billion. GAAP diluted EPS guidance is projected at $1.26 to $1.46, while Non-GAAP diluted EPS guidance is estimated at $2.10 to $2.30. The company anticipates that memory supply constraints and related pricing will impact demand among certain handset OEMs. QCT revenue from Chinese handset customers is expected to bottom out in the third quarter and subsequently resume quarter-on-quarter growth in following quarters.
Cristiano Amon, President and Chief Executive Officer of Qualcomm, stated:
"We are pleased to deliver results consistent with our guidance, reflecting our strong execution amid a challenging memory environment. We are in the midst of profound industry transformation — the rise of AI agents is reshaping the product roadmaps across all our platforms. We are equally excited about our entry into the data center market, with a custom chip collaboration project with a leading hyperscale cloud provider on track for initial shipments later this year. We look forward to providing updates on growth initiatives such as data centers and physical AI at our Investor Day on June 24."
Cash Repurchase:
Qualcomm returned approximately $5.4 billion to shareholders through repurchases and dividends in the current fiscal year. The remaining stock repurchase authorization was approximately $20 billion as of the end of the quarter. The company announced a cash dividend of $0.89 per share.
Editor/Liam