QCOM

QUALCOMM Incorporated

Next est. report 2026-11-04 · AMC

AI '25: Phase 2 DeploymentAutonomous Vehicles '25: Autonomous Compute & SiliconChips '24: IC and Components Chips '26: CPUs Edge AI Long '24: Edge Processors Edge AI Long '26: AI Wearables Edge AI Long '26: NPU + Mobile Inference Humanoid '25: Compute & Edge AI Humanoid '25: Learned Memory & Interfacing Memory '26: Graphics & Mobile Memory

Loading…

Loading chart…

Overview

QUALCOMM Incorporated develops core wireless technologies, designing chips and licensing patents for smartphones, cars, and IoT devices. Its QCT division provid

QUALCOMM Incorporated develops core wireless technologies, designing chips and licensing patents for smartphones, cars, and IoT devices. Its QCT division provides integrated circuits, while QTL licenses intellectual property. Generating roughly 86% of revenue from hardware and 13% from licensing, Qualcomm serves major smartphone makers, global automakers like BMW, and is expanding into data centers with custom silicon.

Search Keywords Brand Product

Snapdragon
Snapdragon Digital Chassis
Snapdragon Ride
Snapdragon X2 Plus
Dragonwing IQ10
HBC Gen 1
Qualcomm High Bandwidth Compute
Modular Inc. software
agentic AI smartphones
smart glasses
semiconductor industry
wireless communication
Edge AI
data center chips
automotive semiconductors
IoT devices
AI accelerators
CPU development
memory prices
supply chain shortages

Search Keywords Event Phrases

QUALCOMM earnings call
ModCon August
Snapdragon Summit September
Qualcomm Investor Day

Search Keywords Policy Regulatory

EU AI Act
US-China tech restrictions

What They Do (Plain English & Analogies): Qualcomm is like the architect and engine builder for many of our connected devices. They design the advanced "brains" (processors) that power smartphones, cars, and industrial robots. Beyond just making these "engines" (their Snapdragon chips), they also own many of the fundamental patents for how these devices connect wirelessly, like with 5G. They collect a small fee from other manufacturers who use these essential wireless technologies. Currently, they are heavily focused on "agentic AI," which means making devices smart enough to run AI tasks continuously in the background, making them more proactive and intuitive, much like a personal assistant that anticipates your needs across all your devices, from tiny smart wearables to powerful data centers. They are also expanding into providing specialized chips and software for large data centers.
Very Brief History: Founded in 1985 in San Diego, California, Qualcomm pioneered CDMA technology, which became a foundational standard for 3G and 4G mobile networks. Over decades, it evolved from a wireless research laboratory into a leading global mobile chip designer. Under CEO Cristiano Amon, the company has aggressively diversified its business beyond smartphones into high-growth areas like automotive, personal computing, industrial robotics, and now data centers, leveraging its expertise in power-efficient mobile technology.
"Street Stereotype": Historically, Qualcomm was often viewed by investors as primarily a 'proxy for the smartphone market,' known for its strong patent portfolio and occasional litigation. However, the current perception is shifting significantly. The Street now increasingly sees Qualcomm as a leading 'Edge AI' play and a compelling diversification story, actively challenging established players like Intel in PCs and NVIDIA in automotive and data center inference markets. The market is currently focused on their ability to execute on their non-handset growth targets, especially in data centers, and navigate the ongoing memory price and supply challenges.
Subsidiaries On Linked In*: Qualcomm Technologies, Inc. — Operates engineering, R&D, and product/services businesses.; LinkedIn: qualcomm-technologies-inc
Qualcomm CDMA Technologies (QCT) — Division focused on integrated circuits and system software.; LinkedIn: qualcomm-cdma-technologies
Qualcomm Technology Licensing (QTL) — Division focused on patent licensing.; LinkedIn: qualcomm-technology-licensing
Qualcomm Strategic Initiatives (QSI) — Investment arm.; LinkedIn: qualcomm-strategic-initiatives
Snapdragon — Product platform brand, often treated as a distinct entity.; LinkedIn: snapdragon
NUVIA — Acquired company, focused on high-performance CPUs.; LinkedIn: nuvia
Ventana Micro Systems — Acquired company, focused on RISC-V CPUs and chiplet architecture.; LinkedIn: ventana-micro-systems
Alphawave Semi — Acquired company, focused on high-speed connectivity solutions.; LinkedIn: alphawave-semi
Modular Inc. — Acquired company, focused on end-to-end software stack for data center and Edge AI deployments.; LinkedIn: modular-inc
Customer Sectors & Example Clients: Qualcomm's customers span several key sectors: **Smartphone OEMs** (e.g., Samsung, Xiaomi, Oppo, Vivo, Apple, ZTE Nubia), **Automotive** (e.g., Volkswagen Group, BMW, Stellantis, Toyota, General Motors, Hyundai, Rivian, Li Auto, Bosch, Wave), **PC Manufacturers** (e.g., Microsoft, HP, Lenovo, ASUS, Dell), **Robotics & Industrial** (e.g., KUKA, Figure AI, Nora, Honeywell, Zebra Technologies, Arduino), and **Data Centers/Cloud Service Providers** (e.g., leading hyperscalers, cloud service providers, sovereign AI projects).
New Customers / Segments They'Re Targeting: Qualcomm is aggressively targeting new customer segments beyond its traditional handset business. A major focus is the **data center market**, where they are developing connectivity solutions, custom silicon, AI accelerators, and server-class CPUs for leading hyperscalers. They are also expanding significantly in the **automotive sector**, securing multi-generation strategic engagements for ADAS and digital cockpit solutions with major automakers like BMW and Stellantis. In **industrial IoT**, they are strengthening their position across various verticals by providing purpose-built silicon and full-stack software for edge AI, industrial networking, and robotics, expanding their reach to over 38,000 customers and 30 million users through partners like Arduino and Edge Impulse. Furthermore, they are driving the adoption of **agentic AI experiences** in new personal AI form factors beyond smartphones, including PCs (with Google and Microsoft), smart glasses (through the Snapdragon Start program), and other intelligent eyewear.
Supply Chain And Sourcing Geographies: Qualcomm's supply chain is global, primarily relying on third-party foundries for chip manufacturing and various suppliers for components. The company is currently experiencing broad-based increases in input costs across wafer fabrication, assembly, test, advanced packaging, memory, and other materials, driven by overall data center demand. This has led to supply chain shortages and unprecedented memory prices, impacting handset and consumer electronics production. While the transcript highlights the impact on Chinese OEMs due to memory dynamics, specific geographic details for all raw material or component manufacturing are not provided beyond the general impact on the global semiconductor industry. Qualcomm notes that the industry is operating at 100% utilization across all aspects of the supply chain, from wafers to assembly and testing. Despite these challenges, Qualcomm is confident in its supply to execute its plans, partly due to its scale and inventory management.
Sales Geographies And Expansion Plans: Qualcomm currently sells its products globally, with significant exposure in key markets such as **China** (for Android handsets), **North America**, **Europe**, and **Asia** across its various segments. The company's licensing business (QTL) has global reach, with handset units being a key driver. In the automotive sector, they have major design wins with global automakers like Volkswagen, BMW, Stellantis, and Toyota. For 6G, Qualcomm is actively building a 60-company coalition spanning carriers, cloud infrastructure, AI-native partners, and auto OEMs across the globe, indicating plans to expand and solidify its presence in future wireless technologies worldwide. The company's expansion into data centers also implies a global reach to leading hyperscalers.
How Key Themes May Help/Hurt: The "Edge AI Long '26: AI Wearables" theme presents both opportunities and challenges for Qualcomm. **Help**: Qualcomm is a primary beneficiary of the shift towards 'agentic AI' and AI-native devices, including smart glasses and other personal AI form factors. Their Snapdragon platforms, with leading NPUs and CPUs (like the Orion CPU), are critical for enabling sophisticated on-device AI experiences, driving new upgrade cycles and expanding their addressable market. The Snapdragon Start program for smart glasses aims to accelerate the ecosystem and transition this category to smart glasses, directly benefiting Qualcomm's chip sales. The theme's focus on efficient NPUs and specialized chips aligns perfectly with Qualcomm's core strengths in power-efficient compute. **Hurt**: The theme also highlights persistent DRAM shortages due to high demand for HBM in AI data centers. This constraint directly impacts handset and AI wearable production, leading to higher component costs and restricting manufacturing scale. While Qualcomm is addressing this with price increases, it creates short-term pressure on gross margins and can cap the recovery of the mobile segment, which still represents a significant portion of their revenue. Intense competition and consumer hesitations regarding privacy, form factor, and perceived value for AI wearables could also pose market penetration hurdles.

3 Main Long-Term Bull Details

Accelerated Diversification into Automotive, IoT, and Data Center: Qualcomm is successfully diversifying beyond smartphones, with record automotive revenues (expected to exit fiscal 2026 at an annualized run rate of approximately $7 billion) and strong growth in IoT (industrial networking and robotics design win pipeline exceeding $7 billion). Their strategic entry into the data center market with four unique product lines (connectivity, custom silicon, AI accelerators, and server-class CPUs) is projected to generate more than $15 billion in revenue by fiscal 2029, significantly expanding their non-handset revenue outlook to $40 billion by fiscal 2029.
Leadership in Agentic AI and Edge Computing: Qualcomm is strategically positioned as a key architect and beneficiary of the 'agentic AI' era across all connected edge devices. Their world-class Orion CPU and industry-leading NPUs are critical for enabling continuous, on-device AI experiences in smartphones, PCs, smart glasses, and robotics. This technological leadership is expected to drive significant upgrade cycles and expand their addressable market as AI becomes the primary user interface, with early signs of an agentic smartphone cycle emerging.
Strong Customer Engagements and Platform Approach: Qualcomm is securing multi-generation strategic engagements with major customers across its growth segments. This includes landmark agreements with BMW and Stellantis in automotive, becoming the lead compute silicon provider for their next-generation ADAS and digital cockpits. In data centers, they have two near-term custom silicon wins with global hyperscalers, with revenue starting in the December quarter, and are in active conversations with nearly every leading data center player for long-term partnerships. This platform approach and long-term commitment to partnerships are driving increased content per vehicle and significant design wins.

3 Main Long-Term Bear Details

Persistent Memory Supply Constraints and Input Cost Increases: The entire industry continues to be impacted by unprecedented memory prices, higher manufacturing and input costs, and supply chain shortages driven by overall data center demand. This creates short-term pressure on QCT gross margins and limits handset production, directly impacting QCT handset revenue. While Qualcomm is implementing price increases, the duration and magnitude of these headwinds could cap the recovery of the mobile segment and pressure overall corporate margins.
Intense Competition and Execution Risk in New Markets: Qualcomm faces significant competition from entrenched incumbents like Intel and NVIDIA in the PC and data center markets, and hyperscalers designing their own custom silicon. As a new entrant in data centers, Qualcomm recognizes that investors want to see more proof points of successful execution on their plans, and failure to deliver on ambitious revenue targets could impact investor confidence.
Accelerated Decline in Apple Product Revenue: Qualcomm expects a significant acceleration in the step-down of Apple product revenues, with their share for upcoming iPhone launches expected to be materially lower than prior estimates. They are forecasting approximately a 50% decline from the September to December quarter, and expect non-handset growth in fiscal 2027 to replace the entire Apple product revenue from fiscal 2026. This rapid reduction in a historically significant revenue stream presents a challenge that needs to be fully offset by diversification.

Competitors And Differentiation: Qualcomm faces entrenched incumbents and aggressive competition across its markets. In **PCs and data centers**, they compete with established x86 ecosystems (Intel) and dominant GPU providers (NVIDIA). Their differentiation lies in focusing on power-efficient, specialized AI architectures, custom silicon, and RISC-V standards, aiming to offer a high-TCO alternative. In the **automotive sector**, they are becoming the lead compute silicon provider for next-generation ADAS and digital cockpits, winning competitive selection processes against other players by offering a broad technology portfolio, platform approach, and long-term commitment to partnerships. In **handsets**, their Snapdragon platforms with superior NPU performance for agentic AI experiences differentiate them, especially in the premium tier. Qualcomm asserts that no other semiconductor company matches the breadth and scale of its technology and product portfolio.
Recent Performance & What The Market'S Focused On: In fiscal Q3 2026, Qualcomm delivered revenues of $9.9 billion, at the high end of their guidance, and non-GAAP earnings per share of $2.21. QCT revenues were $8.5 billion, with record automotive revenues ($1.6 billion, up 61% year-over-year) and growth in IoT ($1.8 billion, up 9% year-over-year). Licensing business revenues were $1.3 billion. The company provided Q4 fiscal 2026 guidance of $9.7 billion to $10.5 billion in revenues and non-GAAP EPS of $2.05 to $2.25. The market is currently focused on: 1. **Execution of non-handset diversification**: Particularly the ramp-up of data center revenues (starting in the December quarter with custom silicon wins) and the continued acceleration of automotive and industrial IoT growth, which are expected to drive top-line growth for Qualcomm in fiscal 2027. 2. **Impact of memory prices and input costs on gross margins**: The industry-wide increase in input costs and memory prices is creating short-term pressure on QCT gross margins, which will be slightly below their historical range. The market is watching for the effectiveness of implemented price increases and the timeline for gross margins to realign. 3. **The accelerated step-down of Apple product revenues**: Qualcomm's materially lower share for upcoming iPhone launches and the rapid exit of Apple revenue from their model is a key focus, with investors monitoring how effectively non-handset growth can replace this revenue stream. 4. **The emergence of the agentic smartphone cycle**: Despite overall industry contraction in handsets, early signs of an agentic smartphone cycle are being watched as a potential future tailwind for premium tier demand.

Revenue Segments And Estimated Mix: Qualcomm CDMA Technologies (QCT) — Mix: ~85.8% (Q3 FY26 actual); Source: Q3 Fiscal 2026 earnings transcript; Trend: $8.5 billion in Q3 FY26; Handset revenues $5.1 billion, IoT revenues $1.8 billion (up 9% YoY), Automotive revenues $1.6 billion (up 61% YoY, record). Q4 FY26 guidance: $8.4 billion to $9 billion, with Handset ~$5.2 billion, IoT approximately flat YoY, Automotive ~60% YoY growth.
Qualcomm Technology Licensing (QTL) — Mix: ~13.2% (Q3 FY26 actual); Source: Q3 Fiscal 2026 earnings transcript; Trend: $1.3 billion in Q3 FY26. Q4 FY26 guidance: $1.2 billion to $1.4 billion, reflecting normal seasonal trends.
Product Brands: Snapdragon
Adreno
Hexagon
Orion
Dragon Wing
Snapdragon Digital Chassis
Snapdragon Ride
Snapdragon X2
Dragonwing IQ10
Qualcomm Dragonfly C1000
Qualcomm High Bandwidth Compute
Qualcomm Dragonfly AI300
Qualcomm AI200
Qualcomm AI250
HBC Gen 1

Bull / Bear Details

As of August 24, 2026, Qualcomm's investment thesis remains bullish, underpinned by accelerating diversification into high-growth non-handset markets. Record au

Thesis

As of August 24, 2026, Qualcomm's investment thesis remains bullish, underpinned by accelerating diversification into high-growth non-handset markets. Record automotive design wins and a raised FY29 non-handset revenue target of $40 billion, driven by significant data center expansion and IoT growth, are set to materially offset persistent handset market headwinds and the accelerated step-down of Apple revenues. Qualcomm's leadership in agentic AI across edge-to-cloud computing solidifies its long-term growth trajectory.

Bull case

Qualcomm's diversification strategy is accelerating, with automotive revenue now expected to reach an annualized run rate of $7 billion exiting fiscal 2026, up from $6 billion. Landmark agreements with BMW and Stellantis, coupled with the fifth-generation Snapdragon Digital Chassis, position Qualcomm to become the #1 automotive semiconductor player by revenue, significantly reducing reliance on the volatile smartphone market.
Qualcomm is rapidly expanding its data center presence, projecting over $15 billion in revenue from this segment by fiscal 2029. Initial custom silicon engagements with two global hyperscalers are revenue-generating in the December quarter, with a phased rollout of connectivity, AI accelerators (HBC Gen 1 tape-out complete), and server-class CPUs. The acquisition of Modular Inc. further strengthens its end-to-end software stack for Edge AI deployments.
Qualcomm is a primary beneficiary of the emerging 'agentic AI' era across all connected edge devices. This includes expanding collaboration with Samsung for intelligent eyewear, growing design wins in AI-first Google Books PCs, and the Snapdragon Start program for smart glasses. These initiatives, alongside the agentic smartphone cycle, create a significant multiyear upgrade opportunity for personal, contextual, and autonomous AI experiences.

Bear case

The entire industry faces unprecedented memory prices, higher manufacturing and input costs, and supply chain shortages, creating short-term pressure on QCT gross margins. While Qualcomm is implementing double-digit price increases, initial data center custom chip engagements are expected to be significantly lower margin, causing a 1.5% to 2% drag on QCT's weighted average gross margin.
Qualcomm faces a significant headwind from the accelerated step-down of Apple product revenues, with its share for upcoming iPhone launches materially lower than the prior 20% estimate. This will result in an approximate 50% decline from the September to December quarter, accelerating Apple's exit from Qualcomm's revenue model and requiring substantial non-handset growth to offset.
Despite ambitious targets, Qualcomm is a new entrant in the data center and PC markets, facing entrenched incumbents like Intel and NVIDIA, alongside hyperscalers developing their own custom silicon. Gaining significant enterprise market share requires overcoming software compatibility hurdles and proving execution, as acknowledged by management, posing risks of commoditization or slower-than-expected adoption.

Bull / Bear Case

Bear Case: Qualcomm faces significant near-term headwinds from unprecedented memory prices, higher manufacturing and input costs, and supply chain shortages, which are pressuring QCT gross margins. Initial data center custom chip engagements are expected to be significantly lower margin, causing a 1.5% to 2% drag on QCT's weighted average gross margin. The company anticipates a material acceleration in the step-down of Apple product revenues, with a projected 50% decline from the September to December quarter, creating a substantial revenue gap. The overall handset market is expected to be down low teens in fiscal 2027, with QCT Android revenue down 20% year-over-year, impacting EPS by more than $1.50. Qualcomm also faces intense competition and execution risk as a new entrant in the data center and PC markets.
Bull Case: Qualcomm's diversification strategy is rapidly accelerating, particularly in high-growth non-handset markets. Automotive revenue is projected to reach an annualized run rate of $7 billion exiting fiscal 2026, driven by landmark agreements with BMW and Stellantis, positioning Qualcomm to become the #1 automotive semiconductor player. The company is aggressively expanding into the data center, targeting over $15 billion in revenue by fiscal 2029, with initial custom silicon engagements already revenue-generating. Furthermore, Qualcomm is a key beneficiary of the emerging 'agentic AI' era across edge devices, including smartphones, PCs, and smart glasses, creating significant multiyear upgrade opportunities and expanding its addressable market. Non-handset revenue growth in fiscal 2027 is expected to exceed 60% year-over-year, replacing the entire Apple product revenue from fiscal 2026.
More Compelling & Why: Bear. Despite a forward P/E of approximately 17.34x, which appears modest relative to the broader tech sector, the bear case is more compelling. The market is not adequately discounting the expected -6.85% earnings decrease in the coming year, coupled with the significant and immediate gross margin pressure from rising input costs and the dilutive effect of new data center revenues. The accelerated Apple revenue decline also presents a substantial, tangible headwind. My view would flip if Qualcomm demonstrates clear QCT gross margin recovery towards historical levels in the next two quarters and provides evidence of data center revenue ramping faster and becoming accretive to overall margins sooner than currently projected.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
QCT Automotive Revenue Growth and Pipeline Expansion	Accelerating automotive revenue validates Qualcomm's diversification strategy, reducing reliance on the volatile smartphone market and establishing a significant long-term growth pillar. The landmark BMW win materially expands the future pipeline.	QCT Automotive revenue in Q4 FY26 and subsequent quarters. Monitor for further announcements of new design wins with major OEMs or expansions of existing agreements. Specifically, watch if annualized sales exit fiscal '26 at or above $7 billion.	QCT Automotive revenue exceeding $1.75 billion in Q4 FY26 (implying continued strong YoY growth from Q3's $1.6B and the 60% YoY guidance for Q4) = Bullish. New multi-year, multi-platform design wins with Tier-1 automakers = Bullish.	Qualcomm's quarterly earnings releases and conference calls (next expected late October - early November 2026 for Q4 FY26 results). Company press releases for new design wins.	Industry reports on automotive semiconductor market share (e.g., from S&P Global Mobility, Counterpoint Research). OEM news releases regarding new vehicle platforms or ADAS/digital cockpit suppliers.	S&P Global Mobility: Automotive production forecasts by OEM and model, ADAS/infotainment system supplier breakdowns.
China Handset OEM Revenue Sequential Growth	A confirmed recovery in QCT handset revenues from Chinese OEMs, following a stated bottom in Q3 FY26, signals stabilization in a key market segment and potential for renewed growth in the core mobile business.	QCT handset revenue in Q4 FY26. Management commentary on sequential growth rates for Android shipments, particularly from Chinese OEMs.	QCT handset revenue in Q4 FY26 exceeding $5.2 billion (guidance midpoint) and management confirming double-digit sequential growth for China Android = Bullish.	Qualcomm's Q4 FY26 earnings release and conference call (late October - early November 2026).	Counterpoint Research, IDC, Canalys: Quarterly smartphone shipment reports for China and global Android OEMs.	Sensor Tower/App Annie: App download trends for major Chinese OEM devices. Supply chain checks with component suppliers for Chinese handset makers.
Data Center Custom Silicon Revenue Ramp and HBC Gen 1 Milestones	Successful execution and ramp of data center custom silicon engagements and the High-Bandwidth Compute (HBC) solution are critical proof points for Qualcomm's new multi-billion dollar data center strategy, validating its ability to compete in this high-growth market.	Confirmation of data center revenue recognition in the December quarter (Q1 FY27). Updates on HBC Gen 1 silicon performance demonstrations in coming quarters. Announcements of additional Tier-1 Cloud Service Provider (CSP) partnerships beyond the initial two.	Data center revenue recognized in Q1 FY27 (December quarter) = Bullish. Positive silicon performance demonstrations for HBC Gen 1 ahead of mid-2027 launch = Bullish. Announcement of a third Tier-1 CSP partnership = Bullish.	Qualcomm's Q4 FY26 earnings call (late October - early November 2026) for Q1 FY27 guidance and Q1 FY27 earnings call (early February 2027) for actuals. Company press releases and investor presentations.	Industry news and tech media coverage of data center chip deployments and AI accelerator benchmarks. Hyperscaler earnings calls for commentary on custom silicon or new infrastructure partners.	TrendForce: Data center CapEx forecasts and custom ASIC adoption rates. Omdia: AI accelerator market share and roadmap analysis.
Non-Handset Revenue Growth Replacing Apple Product Revenue	The successful replacement of declining Apple product revenues with accelerated growth in non-handset segments (Automotive, IoT, Data Center) is a critical validation of Qualcomm's diversification strategy and its ability to pivot away from a significant customer.	Total non-handset revenue growth rate in fiscal '27. Management commentary on the specific contribution of non-handset segments to offset the Apple decline.	Non-handset revenue growth in FY27 exceeding the 'greater than 60% year-over-year' target and explicitly replacing the entire FY26 Apple product revenue = Bullish.	Qualcomm's Q4 FY26 earnings call (late October - early November 2026) for FY27 outlook, and subsequent quarterly earnings calls throughout FY27.	Qualcomm Investor Day presentations and updated financial targets. Industry reports on growth rates for automotive, IoT, and data center semiconductor markets.	Bloomberg Terminal/FactSet: Consensus estimates for Qualcomm's segment revenues for FY27.
QCT Gross Margin Recovery from Price Increases	The ability to successfully implement double-digit price increases and restore QCT gross margins to historical levels is crucial for overall profitability, offsetting current industry-wide input cost pressures and memory dynamics.	QCT EBT margin in Q4 FY26 and Q1 FY27. Management commentary on the effectiveness and timing of price increases taking effect.	QCT EBT margin in Q4 FY26 at or above 25% (high end of guidance) and guidance for Q1 FY27 showing sequential improvement towards the historical 48-50% gross margin range = Bullish.	Qualcomm's quarterly earnings releases and conference calls (Q4 FY26 in late October - early November 2026, Q1 FY27 in early February 2027).	Industry reports on semiconductor input costs (e.g., wafer prices, memory spot prices). Competitor earnings calls for similar commentary on pricing strategies and gross margin trends.	IC Insights: Semiconductor manufacturing cost trends. TrendForce: Memory spot pricing and contract pricing reports.

Key Reported Metrics, Reratings Triggers & Results3 rows

This margin indicates the profitability of Qualcomm's semiconductor business, which is currently pressured by rising input costs and the dilutive effect of new

Upcoming print · 2026-11-04

Key reported metrics
Metric	Last period	Why it matters
QCT EBT Margin	26%	This margin indicates the profitability of Qualcomm's semiconductor business, which is currently pressured by rising input costs and the dilutive effect of new data center engagements. Investors will monitor the effectiveness of price increases to restore margins.
QCT Handset Revenue Growth	$5.1 billion	Despite diversification, handsets remain a significant revenue source. This metric reflects the combined impact of accelerated Apple revenue decline and the anticipated recovery in China Android, influencing overall QCT performance.
QCT Automotive Revenue Growth	$5.1 billion	This metric is crucial as it validates Qualcomm's diversification strategy and the success of its Snapdragon Digital Chassis, reducing reliance on the volatile smartphone market. Continued strong growth signals positive execution.

Last reported · 2026-07-29

Key reported metrics			Rerating thresholds			Earnings results
Metric	Last period	Why it matters	What's needed for rerating	Rerating context	Earnings date	Actual reported	Hit target?	Notes
QCT Handset Revenue	17%	Hitting this threshold would validate Qualcomm's leadership in premium 'AI-native' smartphones and signal an earlier-than-expected recovery from memory constraints. This alleviates investor concerns about core mobile business volatility, supporting the investment thesis of diversification and Edge AI dominance, and justifying a higher valuation.	QCT Handset Revenue needs to significantly exceed the company's Q3 FY26 guidance of approximately $4.9 billion, ideally reaching $5.8 billion or higher.	Hitting this threshold would validate Qualcomm's leadership in premium 'AI-native' smartphones and signal an earlier-than-expected recovery from memory constraints. This alleviates investor concerns about core mobile business volatility, supporting the investment thesis of diversification and Edge AI dominance, and justifying a higher valuation.	2026-07-29	$5.1 billion	Partially	QCT handset revenues of $5.1 billion came in at the high end of the company's guidance of approximately $4.9 billion. However, this did not reach the rerating threshold of ideally $5.8 billion or higher. The segment was impacted by industry-wide memory dynamics. Management noted that QCT Android revenue was down 20% year-over-year, with an EPS impact greater than $1.50. They expect China handset revenue to bottom in Q3 and return to double-digit sequential growth in Q4.
QCT Automotive Revenue	15%	Hitting this threshold validates Qualcomm's diversification beyond smartphones, confirming strong adoption of the Snapdragon Digital Chassis. This reduces reliance on the volatile handset market, improves competitive positioning, and signals robust long-term growth, justifying a higher valuation.	QCT Automotive Revenue needs to demonstrate year-over-year growth of 50% or higher in Q3 Fiscal 2026, translating to revenue exceeding $1.55 billion. This aligns with management's guidance for approximately 50% YoY growth in Q3 FY26 and would exceed the 38% YoY growth seen in Q2 FY26.	Hitting this threshold validates Qualcomm's diversification beyond smartphones, confirming strong adoption of the Snapdragon Digital Chassis. This reduces reliance on the volatile handset market, improves competitive positioning, and signals robust long-term growth, justifying a higher valuation.	2026-07-29	$1.6 billion (61% y/y growth)	Yes	Qualcomm delivered a record quarter for QCT Automotive, with revenues of $1.6 billion, representing 61% year-over-year growth. This exceeded the rerating trigger of 50% YoY growth and revenue exceeding $1.55 billion. Management also raised its annualized sales outlook for automotive to approximately $7 billion exiting fiscal '26, up from a previous target of $6 billion.
QCT IoT Revenue	9%	Hitting this validates Qualcomm's diversification into Edge AI, robotics, and industrial PCs, reducing smartphone reliance. It confirms a key bull point, justifying a higher valuation and signaling successful long-term growth by establishing a third pillar of revenue.	QCT IoT Revenue needs to demonstrate year-over-year growth of 15% or higher, ideally reaching 20%+, significantly exceeding the current 9% (Q2 FY26 actuals) and management's 'high single digits' guidance for Q3 FY26.	Hitting this validates Qualcomm's diversification into Edge AI, robotics, and industrial PCs, reducing smartphone reliance. It confirms a key bull point, justifying a higher valuation and signaling successful long-term growth by establishing a third pillar of revenue.	2026-07-29	$1.8 billion (9% y/y growth)	No	QCT IoT revenues of $1.8 billion were up 9% versus the prior year. This growth rate did not meet the rerating trigger of 15% or higher. The growth was driven by the industrial networking and robotics category, but was offset by the impact of memory constraints on tablets and other consumer products. Management expects QCT IoT revenues to remain approximately flat versus the year-ago period in Q4.

Key Questions

Will Qualcomm's double-digit price increases and the bottoming of China handset demand be sufficient to offset the accelerated Apple revenue step-down and resto

Will Qualcomm's double-digit price increases and the bottoming of China handset demand be sufficient to offset the accelerated Apple revenue step-down and restore QCT gross margins to historical levels over the next two quarters?

Question 2: Can Qualcomm sustain its accelerating automotive revenue growth (60%+ YoY) and meet its raised annualized sales target of $7 billion exiting fiscal 2026, further validating its diversification strategy with new wins like BMW?
Question 3: Will Qualcomm successfully execute the initial revenue ramp of its data center custom silicon engagements in the December quarter, and how will the dilutive impact of these revenues affect QCT's overall gross margins?

Earnings Transcript Summary3 rows

2026-07-29 · 2026Q3 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Executing the diversification strategy and expanding into new markets: Management is focused on expanding into the data center with four unique product lines (connectivity, custom silicon, AI accelerators, server-class CPUs), driving agentic and physical AI compute everywhere, and expanding beyond silicon to full-stack software and platform solutions. They updated fiscal 2029 non-handset revenue targets to $40 billion, up from $22 billion, reflecting conviction in these opportunities. 2. Addressing gross margin pressures and implementing price increases: Management is focused on mitigating the impact of unprecedented memory prices, higher manufacturing and input costs, and supply chain shortages that are pressuring QCT gross margins. They are implementing price increases to realign gross margins to their historical operating model. 3. Driving growth through non-handset revenues, particularly data center and automotive: Management anticipates top-line growth for Qualcomm in fiscal '27, driven by an inflection in non-handset revenues. They expect non-handset revenues to accelerate from 24% in fiscal '26 to greater than 60% in fiscal '27, with data center revenue starting to ramp in the December quarter and automotive continuing record growth.	Call Takeaway & ToneThe overall takeaway from the call is that Qualcomm delivered solid Q3 fiscal 2026 results, with revenues and non-GAAP EPS at the high end of guidance, driven by record automotive and strong IoT growth, underscoring the success of its diversification strategy. While the company acknowledged short-term headwinds in the handset market due to industry-wide memory dynamics and a significant acceleration in the step-down of Apple product revenues, management expressed strong confidence in its long-term growth drivers. The tone was mixed, reflecting caution regarding near-term handset volatility and QCT gross margin pressures, but highly optimistic and confident about the accelerating growth in non-handset businesses, particularly data center and automotive, and the transformative potential of 'agentic AI' across all its platforms. Management is firmly focused on executing its strategic vision for diversification and AI leadership.	Prior Quarter'S Y/Y Growth By SegmentIn 2026Q2, QCT IoT revenues were up 9% year-over-year. QCT Automotive revenues grew 38% year-over-year. For QCT Handset revenues, year-over-year growth was not explicitly stated in 2026Q2, but in 2026Q1, it was approximately 17% year-over-year. QTL revenues were approximately flat year-over-year in 2026Q2.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. QCT Gross Margins returning to prior levels: Analysts questioned the timeline for QCT gross margins to recover given rising input costs and price increases. Management responded that price increases, which are double-digit and broad-based, will gradually take effect over the next couple of quarters as contracts and product cycles allow, and they expect to return to the historical 48%-50% gross margin range. They also noted that data center revenue, initially from custom chip engagements, would be dilutive by 1.5%-2% to the weighted average QCT gross margin. 2. Data Center revenue ramp and customer engagements: Analysts inquired about the shape of data center revenue contribution through fiscal 2027, especially from ASIC engagements. Management confirmed that revenue starts in the December quarter from two global hyperscaler custom chip engagements, with purchase orders already in place and wafer production started, expecting a ramp throughout the year. 3. Accelerated Apple revenue step-down and its implications: Analysts asked about the accelerated step-down of Apple product revenues, questioning if Qualcomm was intentionally reducing supply to Apple. Management clarified that it was a combination of supply constraints and discussions leading to a materially lower share (less than 20%) for upcoming iPhone launches, resulting in an approximate 50% decline in Apple product revenue from the September to December quarter. They emphasized that the significant growth in non-handset revenues (greater than 60% in fiscal '27) is expected to replace the entire Apple product revenue from fiscal '26.	Revenue SegmentsQCT IoT revenues were up 9% year-over-year. QCT Automotive revenues grew 61% year-over-year. Total non-handset revenues in QCT (including automotive and IoT) grew 28% year-over-year. QCT handset revenues were $5.1 billion, and QTL revenues were $1.3 billion, but specific year-over-year growth rates for these segments were not provided in the transcript.

2026-04-29 · 2026Q2 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Leveraging Agentic AI: Management is highly focused on the emergence of 'agentic AI' workloads, which are fundamentally changing user experiences across connected edge devices and reshaping Qualcomm's roadmap across smartphones, PCs, automotive, and data centers, representing a significant upgrade opportunity and market expansion. 2. Accelerating Diversification: Qualcomm is emphasizing its continued diversification efforts, particularly in Automotive, which achieved record revenues and 38% year-over-year growth, and IoT, driven by edge AI and new product cycles in personal AI, industrial AI, and robotics. 3. Expanding Data Center Presence: Management is focused on entering the custom silicon space within the data center, with initial shipments expected in the December quarter for a leading hyperscaler, and progressing well with its data center CPU and high-performance AI inference accelerators.	Call Takeaway & ToneThe overall takeaway from the call is that Qualcomm delivered solid Q2 fiscal 2026 results, with EPS at the high end of guidance, driven by record automotive revenues and growth in IoT. While the company acknowledged near-term headwinds in the handset market due to memory industry dynamics, it expressed confidence that China Android QCT revenues would bottom in fiscal Q3. The tone was confident and optimistic regarding Qualcomm's long-term growth drivers, particularly the transformative potential of 'agentic AI' across all its platforms, and the accelerating diversification into automotive, IoT (including robotics and personal AI), and the data center market. Management emphasized the strategic importance of its upcoming Investor Day to provide further details on these growth initiatives.	Prior Quarter'S Y/Y Growth By SegmentIn 2026Q1, QCT Handsets grew approximately 17% year-over-year. QCT IoT grew 9% year-over-year. QCT Automotive grew 15% year-over-year. QTL (Licensing) grew approximately 10% year-over-year.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Data Center Custom Silicon Engagement: Analysts pressed for details on the custom silicon engagement with a large hyperscaler, including its scope and nature. Management responded that they couldn't provide extensive details before the Investor Day on June 24, but confirmed it's a multi-generation engagement leveraging Qualcomm's CPU, accelerator, and custom ASIC capabilities, and is expected to be accretive at the operating margin level. 2. China Handset Bottoming and Future Growth: Analysts questioned the confidence in Q3 being the bottom for China Android QCT sales, especially given typical seasonality and low visibility. Management explained that the current situation is due to OEMs drawing down channel inventory, causing Qualcomm to significantly undership end-consumer demand, and that their QTL visibility confirms the underlying market sell-through, leading to confidence that shipments will reconcile to market size after Q3. 3. Competitive Dynamics in Data Center: Analysts inquired about Qualcomm's competitive positioning in the data center, particularly against vertically integrating IP providers and NVIDIA's focus on inference. Management highlighted Qualcomm's differentiation through its high-performance CPU for agentic experiences, its scale and ability to combine IP with custom silicon, its focus on dedicated inference accelerators for high compute density and low TCO, and its strong position at the edge.	Revenue SegmentsQCT IoT revenues were up 9% on a year-over-year basis. QCT Automotive revenues grew 38% year-over-year. QTL revenues were $1.4 billion, with global handset units approximately flat on a year-over-year basis. QCT Handset revenues were $6 billion, coming in as anticipated, but year-over-year growth was not explicitly stated.

2026-02-04 · 2026Q1 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Navigating Memory Supply Constraints: Management is managing a significant industry-wide DRAM shortage caused by memory suppliers prioritizing HBM for AI data centers, which is limiting handset production. 2. Diversification Strategy: Scaling the 'Snapdragon Digital Chassis' in Automotive (VW and Toyota wins) and launching the 'Dragon Wing' platform for advanced robotics and industrial PCs. 3. Edge AI Leadership: Transitioning the mobile market toward 'agentic' AI experiences with the Snapdragon 8 Elite and expanding the PC ecosystem with the Snapdragon X2 Plus for enterprise.	Call Takeaway & ToneThe takeaway is a 'tale of two stories': Qualcomm achieved record Q1 results across Handsets and Automotive, but issued a cautious Q2 outlook due to external memory supply shocks. While the core mobile business faces near-term volatility as OEMs reduce inventory to cope with high DRAM costs, the long-term diversification into Automotive, Robotics, and Data Center remains robust. The tone was cautious regarding the fiscal year's handset volume but highly confident in the company's technology leadership in the 'Physical AI' and Edge AI era.	Prior Quarter'S Y/Y Growth By SegmentIn 2025Q4: QCT Handsets grew 12% y/y (accelerated to 17% this quarter); QCT IoT grew 24% y/y (decelerated to 9%); QCT Automotive grew 68% y/y (decelerated to 15%); QTL grew 21% y/y (decelerated to 10%).	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Handset Guidance Weakness: Analysts asked if the Q2 guide was impacted by competition or demand. Management responded that the weakness is 100% due to memory availability/pricing, not underlying demand or share loss. 2. Automotive Growth Trajectory: Analysts questioned the durability of auto growth. Management noted that revenue is driven by new car launches (SOPs) and increased ADAS stack adoption, guiding for >35% y/y growth in Q2. 3. Data Center & RISC-V: Analysts pressed for updates on the data center roadmap. Management confirmed they are on track for 2027 revenues, focusing on specialized inference workloads and integrating RISC-V CPUs via the Ventana acquisition.	Revenue SegmentsQCT Handsets: ~17% y/y ($7.8B record); QCT IoT: 9% y/y ($1.7B); QCT Automotive: 15% y/y ($1.1B record); QTL (Licensing): ~10% y/y ($1.6B).

Transcript Tidbits4 rows

2026-07-29

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketQualcomm is expanding into the data center with four unique product lines and beyond silicon to full-stack software and platform solutions, updating its fiscal 2029 non-handset revenue outlook to $40 billion, up from $22 billion. This includes over $24 billion from automotive and IoT, and over $15 billion from data center. The company secured a landmark expanded agreement with BMW as the lead compute silicon provider for next-generation ADAS and digital cockpit, materially expanding its automotive pipeline into the next decade, and expects annualized automotive sales of approximately $7 billion exiting fiscal '26. In Industrial, the design win pipeline exceeds $7 billion, with over $3.5 billion secured this fiscal year, leveraging a broad portfolio and reaching over 30 million users through Arduino and Edge Impulse. Qualcomm is also seeing early signs of an agentic smartphone cycle, expanding its collaboration with Samsung across the Galaxy ecosystem to include intelligent eyewear with Google, and growing its leading share of design wins in Google Books for AI-first laptops. The Snapdragon Start program for smart glasses aims to expand the ecosystem and accelerate the transition of the 600 million global eyewear units shipped annually to smart glasses.	About CompetitionQualcomm won a highly competitive selection process to become BMW's lead compute silicon provider for next-generation ADAS and digital cockpit. The company's acquisition of Modular Inc. aims to change the industry approach to AI software from closed to open systems to promote enhanced competition. However, Qualcomm expects its share for the upcoming iPhone launch to be materially lower than its prior estimate of 20%, indicating a reduction in business with Apple. The company also acknowledges facing entrenched incumbents and aggressive competition in the PC and data center markets, including hyperscalers designing their own custom silicon, which could lead to market share challenges or commoditization.	About The Broader IndustryThe entire industry is currently impacted by unprecedented memory prices, higher manufacturing and input costs, and supply chain shortages driven by overall data center demand. This has led to revenue decline in mobile and consumer electronics and short-term pressure on QCT gross margins. The semiconductor industry is experiencing broad-based input cost increases across wafer fabrication, assembly, test, advanced packaging, memory, and other materials, with the industry operating at 100% utilization, similar to pandemic conditions. Agentic workloads are reshaping the economics of AI, with inference becoming disaggregated in the data center and increasingly distributed, leading to hybrid inference across the entire compute continuum from data center to edge devices. There are early signs of an agentic smartphone cycle emerging, and the global eyewear market, shipping roughly 600 million units annually, is poised for a transition to smart glasses.	Where Things Are HeadedQualcomm expects top-line growth in fiscal '27, driven by an inflection in non-handset revenues. The company updated its fiscal 2029 financial targets, projecting over $40 billion in total non-handset revenue, including more than $24 billion from automotive and IoT, and over $15 billion from data center. The data center product portfolio will roll out in phases over the next two years, with HBC Gen 1 performance on silicon expected in coming quarters ahead of a mid-2027 launch. Automotive annualized sales are now expected to reach approximately $7 billion exiting fiscal '26. QCT gross margins are expected to realign to historical ranges as price increases take effect over the next couple of quarters. The company anticipates an accelerated step-down in Apple product revenues starting in Q4, with its share for the upcoming iPhone launch materially lower than 20%. QCT non-handset revenues are expected to grow to $40 billion by fiscal '29, with non-handsets comprising over 50% of QCT revenues in fiscal '27 and approximately two-thirds in fiscal '29. This non-handset growth in fiscal '27 is expected to replace total Apple product revenues from '26. Handset revenues are expected to grow sequentially from December to March quarters, and the data center revenue, primarily from custom chip engagements, will be a 1.5% to 2% drag on QCT's weighted average gross margin.	Updates On ThemeAI	Broader Themes EmergingAgentic workloads are reshaping the economics of AI, driving disaggregated and distributed inference across the compute continuum from data center to edge. The industry is seeing AI infrastructure evolve with software and hardware converging for better performance, flexibility, and efficiency, with an ambition to shift AI software from closed to open systems to promote competition. The semiconductor industry is experiencing broad-based increases in input costs and supply chain shortages, operating at 100% utilization across wafers, assembly, and testing, similar to pandemic conditions.	Bullish-Leaning Quotes (Short)In fiscal Q3, we delivered revenues of $9.9 billion, coming in at the high end of our guidance and non-GAAP earnings per share of $2.21. another quarter of record automotive revenues as well as growth in IoT. total non-handset revenue outlook to $40 billion by fiscal 2029, up from our previous target of $22 billion. expect top line growth for QUALCOMM in fiscal '27, driven by an inflection in non-handset revenues. Automotive, customer momentum continues to drive exceptional revenue growth. on track to become the #1 automotive semiconductor player by revenue. now expect annualized sales of approximately $7 billion exiting fiscal '26. industrial design win pipeline exceeds $7 billion with over $3.5 billion in design wins secured this fiscal year. seeing early signs of an agentic smartphone cycle that will grow over time. QCT non-handset revenues expected to grow to $40 billion by fiscal '29, nearly double the target we had previously provided. non-handsets at more than 50% of QCT revenues in fiscal '27 and grow to approximately 2/3 in fiscal '29. growth from non-handset revenues in fiscal '27 to replace total Apple product revenues in '26. We're excited to have completed this transaction, adding a world-class team whose AI software expertise will enhance our ability to execute on the significant opportunities ahead.	Bearish-Leaning Quotes (Short)the entire industry continues to be impacted by unprecedented memory prices, higher manufacturing and input costs as well as supply chain shortages. creating short-term pressure on QCT gross margins which will be slightly below our historical range. revenue decline in mobile and consumer electronics. our share for upcoming iPhone launch is expected to be materially lower than our prior estimate of 20%. data center revenue coming in since the first revenue is mostly from custom chip engagements. We do expect that to be significantly lower than our ongoing, kind of, baseline gross margin percentage. And so that will be a drag of 1.5% to 2% on the weighted average gross margin for QCT. handset market is we think the market will be down low teens relative to '25 -- to '26. The net impact on QCT Android revenue is -- the revenue is down 20% year-over-year and the EPS impact of it is greater than $1.50.	HiringQualcomm has closed its acquisition of Modular Inc., with integration underway. The company welcomed the Modular team, stating that their AI software expertise will enhance Qualcomm's ability to execute on significant opportunities. Non-GAAP operating expenses are expected to be approximately $2.7 billion in the quarter, reflecting the acquisition of Modular and continued investment in the data center product roadmap ahead of revenue ramp, implying increased headcount and investment in these areas. The CEO also thanked employees for their outstanding execution and commitment, especially for a company that is changing and developing new capabilities.

2026-04-29

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)
About Expanding Eligible MarketQualcomm sees a significant upgrade opportunity and expansion of its addressable market in the coming years, as the installed base of devices was not built for new agentic AI capabilities. The company exceeded $5 billion in annualized automotive revenues for the first time, expecting to exit fiscal '26 at a run rate above $6 billion. The fifth-generation Snapdragon Digital Chassis platform represents the largest generation-to-generation content increase in Qualcomm's history, delivering 3x higher CPU throughput, a threefold increase in GPU capability, and 12x higher NPU performance for Level 3 and Level 4 autonomous driving. In IoT, agentic workloads and edge AI are driving major product renewal design cycles. Qualcomm anticipates a significant increase in new smart glasses starting in the second half of the year, which, combined with rapid progress in agentic AI, is expected to catalyze an inflection point in customer demand. The Dragonwing IQ10 platform has generated substantial customer interest for physical and industrial AI, with a multiyear agreement with Nora reinforcing confidence in becoming a significant player in the broad robotics market. Qualcomm is also entering the custom silicon space for data centers, with initial shipments expected in the December quarter for a leading hyperscaler. The company believes 6G will enable new classes of mobile and personal devices like smart glasses and will be an AI-native network, presenting a significant transition and opportunity for the wireless industry.	About CompetitionQualcomm asserts that no other semiconductor company matches the breadth and scale of its technology and product portfolio. In the PC space, the Snapdragon X2 PC platforms are in production, with a PC MAG review noting Qualcomm is now a serious challenger and, in some cases, helping to set the pace. The Snapdragon X2's NPU is highlighted as the world's fastest for laptops, delivering up to 85 TOPS, and its CPU has the best on-device token generation rate, outperforming Intel's [indiscernible] Lake by nearly 30%. Cristiano Amon discussed the competitive landscape in data centers, emphasizing Qualcomm's differentiated CPU asset, custom silicon capabilities enhanced by the Alphawave acquisition, and a dedicated inference accelerator for high compute density and low TCO. The multiyear agreement framework with Samsung for premium smartphones remains stable, with Qualcomm expecting to maintain greater than 70% share, and an opportunity for a positive bias on that share. For Apple, the assumption of 20% share for phones launching in fall this year remains unchanged, with no product relationship beyond that.	About The Broader IndustryThe broader industry is undergoing a period of profound change driven by the emergence of agentic AI workloads, which are fundamentally reshaping user experiences across connected edge devices and influencing product roadmaps. The handset industry is experiencing challenges due to increasing demand for memory in AI data centers, leading to uncertainty in memory supply and price increases for handset OEMs. This has caused OEMs, particularly in China, to adopt a cautious approach by reducing build plans and drawing down channel inventory. The transition to 'AI-native' smartphones and 'agentic' experiences is expected to become a significant tailwind for premium demand over time. Looking further ahead, 6G is envisioned as an 'AI-native network' where AI reasoning, learning, and autonomous action are core functions, integrating communication with wide-area real-time sensing to enable new AI-enabled services and business models.	Where Things Are HeadedQualcomm expects automotive revenues to exceed $6 billion run rate by the end of fiscal '26, with continued share gains and increased content, especially in ADAS, in fiscal '27. The company anticipates a significant increase in new smart glasses choices in the second half of the year, catalyzing an inflection point in customer demand. Initial shipments for custom silicon engagement with a leading hyperscaler are expected in the December quarter, with development of data center CPUs and high-performance AI inference accelerators progressing well. Qualcomm projects that QCT handset revenues from Chinese customers will bottom out in fiscal Q3 and return to sequential growth in the following quarter. Agentic smartphones are expected to influence the premium tier and gain strength into fiscal '27. For 6G, Qualcomm plans prototype demonstrations and first silicon in 2028, with early launches in 2029 and scale by 2030. The company will provide a broader update on data center plans, advanced robotics, next-generation ADAS, industrial edge AI, personal AI devices, and 6G at its Investor Day on June 24.	Updates On Theme**Phase	Broader Themes EmergingAgentic AI (AI agents as the next evolution of user interfaces across connected edge devices); AI-native networks (6G designed with AI reasoning, learning, and autonomous action as core functions); Memory-constrained supply chain dynamics impacting consumer electronics due to HBM demand for AI data centers.	Bullish-Leaning Quotes (Short)In fiscal Q2, we delivered revenues of $10.6 billion and non-GAAP earnings per share of $2.65, with EPS coming in at the high end of our guidance. ; another quarter of record automotive revenues as well as growth in IoT. ; exceeded $5 billion in annualized revenues for the first time, and we expect to exit fiscal '26 at a run rate above $6 billion. ; Qualcomm is now a serious challenger in the PC space and states, 'the generational leap from the original Snapdragon X Elite to the X2 series is particularly striking. Qualcomm hasn't just caught up to the industry. In some cases, is now helping to set the pace.' ; our [indiscernible] NPU is the world's fastest for laptops delivering up to 85 tops together with our industry-leading CPU, which has the best on-device token generation rate. ; Snapdragon X2 delivers the full agent experience end-to-end and outperforms Intel's [indiscernible] Lake by nearly 30%. ; multiyear agreement with Nora reinforcing our confidence that we can become a significant player in the broad robotics market. ; entering the custom silicon space beginning our ramp with a leading hyperscaler and we expect initial shipments in the December quarter. ; QCT handset revenues from Chinese customers will reach a bottom in the third quarter and return to sequential growth in the following quarter. ; agentic smartphone will soon begin to influence the premium tier and we expect this [ theme ] will only get stronger into fiscal '27. ; QCT automotive and IoT revenues grew 20% year-over-year, underscoring the continued diversification of our business. ; We now expect initial shipments for our custom silicon engagement at a leading hyperscaler later this calendar year.	Bearish-Leaning Quotes (Short)Today's installed base of devices were not built for this new capabilities, and it represents a significant upgrade opportunity and expansion of our addressable market in the coming years. ; OEMs remain cautious on handset bills due to the impact of challenging memory industry dynamics. ; our China QCT Android shipments are meaningfully below the scale of end consumer handset demand. ; In the third fiscal quarter, we are forecasting revenues of $9.2 billion to $10 billion and non-GAAP EPS of $2.10 to $2.30. ; sequential decline primarily due to the operating assumption of weaker low-tier handset units. ; QCT handset revenues to be approximately $4.9 billion as a result of the impact of the industry-wide memory dynamics I just outlined. ; While our near-term revenues are impacted by memory industry cyclical dynamics.

2026-02-04

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)
About Expanding Eligible MarketQualcomm formally announced its expansion into advanced robotics with the Dragon Wing IQ 10 series, supporting household, industrial, and humanoid robots. The company also entered the industrial PC space with the Dragon Wing IQX series for PLCs and edge controls. In the data center, the acquisitions of Alphawave SEMI and Ventana Micro Systems expand their footprint into high-speed connectivity and high-performance RISC-V CPUs for next-generation inferencing.	About CompetitionQualcomm maintains a strong competitive position with an expected 75% share in Samsung's upcoming premium devices. The new Snapdragon X2 Plus for PCs claims 3.5 times faster multi-core performance and 5.7 times faster AI inferencing than competitors' NPUs. In the data center, the company is positioning its specialized AI architecture as a more power-efficient alternative to traditional GPUs for inference workloads.	About The Broader IndustryThe handset industry is facing a significant structural constraint as memory suppliers redirect DRAM manufacturing capacity to HBM to meet AI data center demand, leading to industry-wide shortages and price hikes. Simultaneously, the industry is transitioning toward 'AI-native' smartphones and 'agentic' experiences, where AI agents become the primary user interface for mobile computing.	Where Things Are HeadedData center solutions are expected to begin showing meaningful revenue by 2027, with the company targeting a multibillion-dollar opportunity in that space. Qualcomm remains on track to commercialize 150 Snapdragon X-powered PCs this year and is moving toward its 2029 diversification revenue targets, driven by automotive, robotics, and industrial IoT growth.	Updates On ThemePhase	Broader Themes EmergingPhysical AI (the convergence of edge AI and sensor fusion in robotics); Agentic AI (AI agents as the next evolution of the mobile UI); Memory-constrained supply chain dynamics impacting consumer electronics.	Bullish-Leaning Quotes (Short)"Record revenues of $12.3 billion and non-GAAP earnings per share of $3.50."; "Automotive revenue growth to accelerate to greater than 35%."; "Demand for our Snapdragon digital chassis solutions remains incredibly strong."; "We expect 2027 to start showing in [data center] revenues."	Bearish-Leaning Quotes (Short)"The handset industry will be constrained by the availability and pricing of memory."; "Several handset OEMs... are taking a cautious approach in reducing their chipset inventory."; "Our guidance for the upcoming quarter reflects... reduced chipset orders."

2026-02-04

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)
About Expanding Eligible MarketQualcomm formally announced its expansion into advanced robotics with the Dragon Wing IQ 10 series, supporting household, industrial, and humanoid robots. The company also entered the industrial PC space with the Dragon Wing IQX series for PLCs and edge controls. In the data center, the acquisitions of Alphawave SEMI and Ventana Micro Systems expand their footprint into high-speed connectivity and high-performance RISC-V CPUs for next-generation inferencing.	About CompetitionQualcomm maintains a strong competitive position with an expected 75% share in Samsung's upcoming premium devices. The new Snapdragon X2 Plus for PCs claims 3.5 times faster multi-core performance and 5.7 times faster AI inferencing than competitors' NPUs. In the data center, the company is positioning its specialized AI architecture as a more power-efficient alternative to traditional GPUs for inference workloads.	About The Broader IndustryThe handset industry is facing a significant structural constraint as memory suppliers redirect DRAM manufacturing capacity to HBM to meet AI data center demand, leading to industry-wide shortages and price hikes. Simultaneously, the industry is transitioning toward 'AI-native' smartphones and 'agentic' experiences, where AI agents become the primary user interface for mobile computing.	Where Things Are HeadedData center solutions are expected to begin showing meaningful revenue by 2027, with the company targeting a multibillion-dollar opportunity in that space. Qualcomm remains on track to commercialize 150 Snapdragon X-powered PCs this year and is moving toward its 2029 diversification revenue targets, driven by automotive, robotics, and industrial IoT growth.	Updates On ThemePhase	Broader Themes EmergingPhysical AI (the convergence of edge AI and sensor fusion in robotics); Agentic AI (AI agents as the next evolution of the mobile UI); Memory-constrained supply chain dynamics impacting consumer electronics.	Bullish-Leaning Quotes (Short)"Record revenues of $12.3 billion and non-GAAP earnings per share of $3.50."; "Automotive revenue growth to accelerate to greater than 35%."; "Demand for our Snapdragon digital chassis solutions remains incredibly strong."; "We expect 2027 to start showing in [data center] revenues."	Bearish-Leaning Quotes (Short)"The handset industry will be constrained by the availability and pricing of memory."; "Several handset OEMs... are taking a cautious approach in reducing their chipset inventory."; "Our guidance for the upcoming quarter reflects... reduced chipset orders."

Notes2 rows

Date	Comment	Comment Type	Comment Sentiment	Link	Price Reaction
2026-02-04	Qualcomm delivered record Q1 2026 results, yet shares dropped 7.76% following a cautious Q2 outlook. Management cited a global DRAM shortage—driven by AI data center demand for HBM—as a major constraint on handset OEM production. While Automotive and IoT segments showed record momentum, the market prioritized near-term supply-chain headwinds in the core mobile business over long-term diversification progress in PCs and robotics.	Earnings Transcript	Mixed	https://investor.qualcomm.com/news-events/events	-7.76% (vs SPY: -8.89%)
2026-07-29	Qualcomm reported Q3 FY26 revenues at the high end of guidance, driven by record automotive and IoT growth, and raised its FY29 non-handset target to $40 billion. However, accelerated Apple revenue decline, persistent memory price pressures impacting QCT gross margins, and a weak handset outlook led to a -5.18% stock drop, underperforming the market. The market prioritized near-term headwinds over long-term diversification.	Earnings Transcript	Mixed		-5.18% (vs SPY: -9.05%)

Upcoming Events2 rows

Catalyst ID	Estimated Timing	Estimated Date Start	Estimated Date End	Catalyst	Why It Matters	Ticker Or Theme Specific	Transcript Date	Source Type
QCOM_40d14d5c	ramping in September	2026-09-01	2026-09-30	The fifth-generation Snapdragon Digital Chassis will be ramping.	This ramp-up signifies a significant increase in content per vehicle and is a key driver for Qualcomm's automotive revenue growth, supporting its goal to become the #1 automotive semiconductor player by revenue.	Ticker	2026-07-29	earnings_transcript
QCOM_4e5feba4	Snapdragon Summit in September	2026-09-01	2026-09-30	Qualcomm will provide updates on the Snapdragon Start program for smart glasses at Snapdragon Summit.	This event will offer insights into Qualcomm's strategy to expand the smart glasses ecosystem and accelerate the transition of this category to smart glasses, potentially opening a significant new market for personal AI form factors.	Ticker	2026-07-29	earnings_transcript

Prior Earnings Metrics HistoryTable

Prior earnings scorecards