Qualcomm (QCOM) Q2 2026 Financial Results Summary

Qualcomm Incorporated (NASDAQ: QCOM) released its financial results for the second quarter of fiscal 2026 on April 29, 2026. Here’s a summary of the key metrics and performance highlights:

Financial Performance

• Total Revenues: $10.6 billion
  • Down 3% compared to $10.98 billion in Q2 2025.
  • Non-GAAP revenues decreased 2% from $10.84 billion in Q2 2025.
• GAAP Earnings Before Taxes (EBT): $2.23 billion
  • Down 28% year-over-year from $3.10 billion in Q2 2025.
• Net Income: $7.37 billion
  • Represented a 162% increase compared to $2.81 billion in Q2 2025.
• Diluted Earnings Per Share (EPS):
  • GAAP EPS: $6.88, up 173% from $2.52 in Q2 2025.
  • Non-GAAP EPS: $2.65, down 7% from $2.85 in Q2 2025.

Segment Results

• Qualcomm CDMA Technologies (QCT):
  • Revenue: $9.08 billion, down 4% from $9.47 billion in Q2 2025.
  • EBT: $2.47 billion, down 14% year-over-year from $2.86 billion.
  • EBT as a percentage of revenue declined by 3 percentage points to 27%.
• Qualcomm Technology Licensing (QTL):
  • Revenue: $1.38 billion, up 5% from $1.32 billion a year ago.
  • EBT: $994 million, up 7% from $929 million.
  • EBT as a percentage of revenue increased by 2 percentage points to 72%.

Revenue Streams from QCT

• Handsets: $6.02 billion, down 13% from $6.93 billion in Q2 2025.
• Automotive: $1.33 billion, up 38% from $959 million.
• Internet of Things (IoT): $1.73 billion, up 9% from $1.58 billion.

Shareholder Returns

• Dividends: Qualcomm paid cash dividends totaling $945 million, equating to $0.89 per share.
• Share Repurchases:
  • Total Repurchases: $2.8 billion through the repurchase of approximately 19 million shares of common stock.
  • Announced a new share repurchase authorization of $20 billion.

Tax and Income Adjustments

• Tax Benefit: Recorded a $5.7 billion income tax benefit, or $5.33 per share, due to the release of a valuation allowance. This benefit updates the expectation of realizing existing federal deferred tax assets.

Business Outlook

• Guidance for Q3 FY26:
  • Revenue Forecast: Between $9.2 billion and $10.0 billion.
  • QCT Revenue Estimate: Between $7.9 billion and $8.5 billion.
  • QTL Revenue Estimate: Between $1.15 billion and $1.35 billion.
  • GAAP Diluted EPS Guidance: Between $1.26 and $1.46.
  • Non-GAAP Diluted EPS Guidance: Between $2.10 and $2.30.

Conclusion

Qualcomm's second quarter results showcased significant growth in net income and EPS, alongside robust share repurchase activity. Revenue from automotive and IoT segments displayed notable growth, reflecting successful diversification efforts amid a challenging market environment. The company continues to pursue growth initiatives, particularly in the areas of AI and data centers, signaling ambitions for future expansion and innovation.

Note: All amounts in the following tables are in millions.

Three Months Ended	March 29, 2026	March 30, 2025	Change	Six Months Ended	March 29, 2026	March 30, 2025
Revenues	$9,060	$9,359		$19,526	$19,301
Equipment and services
License	$1,539	$1,620		$3,325	$3,348
Total revenues	$10,599	$10,979		$22,851	$22,649
Costs and expenses
Cost of revenues	$4,900	$4,937		$10,468	$10,098
Research and development	$2,463	$2,216		$4,915	$4,446
Selling, general and administrative	$898	$706		$1,763	$1,430
Other	$29	—		$29	—
Total costs and expenses	$8,290	$7,859		$17,175	$15,974
Operating income	$2,309	$3,120		$5,676	$6,675
Interest expense	-$171	-$163		-$341	-$326
Investment and other income	$94	$148		$444	$391
Income before income taxes	$2,232	$3,105		$5,779	$6,740
Income tax benefit (expense)	$5,138	-$293		$4,596	-$748
Net income	$7,370	$2,812		$10,375	$5,992
Basic earnings per share	$6.92	$2.55		$9.71	$5.41
Diluted earnings per share	$6.88	$2.52		$9.65	$5.36
Shares used in per share calculation	Basic: 1,066	1,104		Basic: 1,068	1,107
Diluted: 1,072	1,115		Diluted: 1,075	1,118

Note: All amounts in the following table are in millions.

March 29, 2026	September 28, 2025
ASSETS
Current assets:
Cash and cash equivalents	$5,435	$5,520
Restricted cash	—	$2,323
Marketable securities	$4,364	$4,635
Accounts receivable, net	$4,347	$4,315
Inventories	$7,368	$6,526
Other current assets	$1,598	$2,435
Total current assets	$23,112	$25,754
Deferred tax assets	$5,968	$743
Property, plant and equipment, net	$5,071	$4,690
Goodwill	$14,251	$11,358
Other intangible assets, net	$1,575	$1,148
Other assets	$7,159	$6,450
Total assets	$57,136	$50,143
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable	$2,973	$2,791
Payroll and other benefits related liabilities	$1,370	$1,839
Unearned revenues	$323	$358
Short-term debt	$498	—
Other current liabilities	$4,603	$4,156
Total current liabilities	$9,767	$9,144
Unearned revenues	$70	$71
Long-term debt	$14,772	$14,811
Other liabilities	$5,249	$4,911
Total liabilities	$29,858	$28,937
Stockholders’ equity:
Preferred stock, $0.0001 par value; 8 shares authorized; none outstanding	—	—
Common stock and paid-in capital, $0.0001 par value; 6,000 shares authorized; 1,059 and 1,074 shares issued and outstanding, respectively
Retained earnings	$26,901	$20,646
Accumulated other comprehensive income	$377	$560
Total stockholders’ equity	$27,278	$21,206
Total liabilities and stockholders’ equity	$57,136	$50,143

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