Qualcomm (QCOM) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly revenues of $12.3 billion, up 5% year-over-year, with record QCT and Automotive revenues; Non-GAAP EPS was $3.50, up 3% year-over-year.

• QCT segment delivered $10.6 billion in revenue, with Automotive up 15% to $1.1 billion and IoT up 9% to $1.7 billion; Handset revenues reached $7.8 billion.

• Completed the acquisition of Alphawave Semi for $2.3 billion, accelerating expansion into data centers and strengthening RISC-V and connectivity capabilities.

• Net income was $3.0 billion, down 6% year-over-year, due to higher operating expenses and lower gross margin percentage.

• Growth in AI momentum and product innovation across personal, industrial, and physical segments, with strong customer traction despite near-term handset headwinds.

Financial highlights

• GAAP net income was $3.0 billion (down 6%); Non-GAAP net income was $3.8 billion (down 1%); GAAP diluted EPS was $2.78, Non-GAAP diluted EPS was $3.50.

• QCT EBT margin was 31%, QTL EBT margin was 77%; QCT EBT was $3.3 billion, QTL EBT was $1.2 billion.

• Returned $3.6 billion to shareholders via $2.6 billion in stock repurchases and $949 million in dividends.

• Cash flow from operations reached $5.0 billion; cash and cash equivalents at quarter-end were $7.2 billion.

• Gross margin was $6.7 billion on $12.3 billion in revenue; operating margin (GAAP) was 27.5%.

Outlook and guidance

• Q2 revenue guidance: $10.2–$11.0 billion; Non-GAAP EPS: $2.45–$2.65; QCT revenue: $8.8–$9.4 billion; QTL revenue: $1.2–$1.4 billion.

• QCT handset revenues forecasted at ~$6 billion due to memory constraints; QCT IoT to grow low teens% year-over-year; QCT Automotive to accelerate >35% year-over-year.

• Non-GAAP operating expenses expected at ~$2.6 billion for Q2; effective tax rate set at 13.5% for FY26.

• Guidance reflects reduced chipset orders and ongoing memory supply constraints impacting handset OEMs, especially in China.

• Guidance includes the impact of the Alphawave acquisition and excludes certain unpredictable items.