Qualcomm Announces Fourth Quarter and Fiscal 2026 Results
QUALCOMM INC/DE (QCOM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FOR IMMEDIATE RELEASE Qualcomm Contact: Brett Simpson Senior Vice President, Investor Relations Phone: 1-858-658-4813 | e-mail: ir@qualcomm.com Qualcomm Announces Fourth Quarter and Fiscal 2026 Results Fiscal 2026 GAAP Revenues: $43.1 billion Fiscal 2026 GAAP EPS: $1
How this was made
The 30-second read
Why it matters
The guidance sets a clear growth trajectory for non‑handset businesses, which may attract investors seeking exposure to AI‑related chip demand.
Market read
The earnings beat and issued guidance provide a fresh catalyst for QCOM and its semiconductor peers, likely influencing sector sentiment.
What to watch
Higher input costs and pricing pressure could compress margins later in FY27 despite revenue growth.
Qualcomm Announces Fourth Quarter and Fiscal 2026 Results
Fourth-quarter GAAP and non-GAAP revenues declined year-over-year, while Automotive reached $1,990 million and grew +89%. Fiscal 2026 GAAP net income and EPS were lifted by a $5.7 billion income tax benefit, while fiscal 2026 non-GAAP revenue, net income and EPS declined.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 Fiscal 2026 total revenuesGAAP | $10.32B | – | (8%) |
| Q4 Fiscal 2026 total revenuesnon-GAAP | $10.44B | – | (7%) |
| Fiscal 2026 total revenuesGAAP | $43.12B | – | (3%) |
| Fiscal 2026 total revenuesnon-GAAP | $43.24B | – | (2%) |
| Q4 Fiscal 2026 equipment and services revenuesGAAP | $8.89B | – | – |
| Q4 Fiscal 2026 licensing revenuesGAAP | $1.43B | – | – |
| Fiscal 2026 equipment and services revenuesGAAP | $36.90B | – | – |
| Fiscal 2026 licensing revenuesGAAP | $6.22B | – | – |
| Q4 Fiscal 2026 operating incomeGAAP | $1.36B | – | – |
| Q4 Fiscal 2026 operating incomenon-GAAP | $2.77B | – | – |
| Fiscal 2026 operating incomeGAAP | $8.66B | – | – |
| Fiscal 2026 operating incomenon-GAAP | $13.24B | – | – |
| Q4 Fiscal 2026 earnings before taxesGAAP | $1.17B | – | (61%) |
| Q4 Fiscal 2026 earnings before taxesnon-GAAP | $2.67B | – | (30%) |
| Fiscal 2026 earnings before taxesGAAP | $9.41B | – | (26%) |
| Fiscal 2026 earnings before taxesnon-GAAP | $12.98B | – | (16%) |
| Q4 Fiscal 2026 net incomeGAAP | $1.25B | – | +140% |
| Q4 Fiscal 2026 net incomenon-GAAP | $2.33B | – | (28%) |
| Fiscal 2026 net incomeGAAP | $13.63B | – | +146% |
| Fiscal 2026 net incomenon-GAAP | $11.31B | – | (15%) |
| Q4 Fiscal 2026 diluted earnings (loss) per shareGAAP | $1.17 | – | +140% |
| Q4 Fiscal 2026 diluted earnings (loss) per sharenon-GAAP | $2.17 | – | (28%) |
| Fiscal 2026 diluted earnings per shareGAAP | $12.70 | – | +153% |
| Fiscal 2026 diluted earnings per sharenon-GAAP | $10.54 | – | (12%) |
| Q4 Fiscal 2026 cost of revenuesGAAP | $5.08B | – | – |
| Fiscal 2026 cost of revenuesGAAP | $20.22B | – | – |
| Q4 Fiscal 2026 research and developmentGAAP | $2.68B | – | – |
| Fiscal 2026 research and developmentGAAP | $10.21B | – | – |
| Q4 Fiscal 2026 selling, general and administrativeGAAP | $963M | – | – |
| Fiscal 2026 selling, general and administrativeGAAP | $3.70B | – | – |
| Q4 Fiscal 2026 income tax benefit (expense)GAAP | $78M | – | – |
| Fiscal 2026 income tax benefit (expense)GAAP | $4.21B | – | – |
| Fiscal 2026 net cash provided by operating activitiesGAAP | $11.14B | – | – |
| Fiscal 2026 capital expendituresGAAP | ($2,494) million | – | – |
| Q4 Fiscal 2026 QCT EBTother | $2.14B | – | (26%) |
| Q4 Fiscal 2026 QCT EBT as % of revenuesother | 24% | – | -5 points |
| Q4 Fiscal 2026 QTL EBTother | $918M | – | (10%) |
| Q4 Fiscal 2026 QTL EBT as % of revenuesother | 70% | – | -2 points |
| Fiscal 2026 QCT EBTother | $10.10B | – | (13%) |
| Fiscal 2026 QCT EBT as % of revenuesother | 27% | – | -3 points |
| Fiscal 2026 QTL EBTother | $4.02B | – | (1%) |
| Fiscal 2026 QTL EBT as % of revenuesother | 72% | – | — |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| QCT revenues, Q4 Fiscal 2026Handsets revenues were $5,137 million, Automotive revenues were $1,990 million, and IoT revenues were $1,888 million. | $9.02B | – | (8%) |
| QTL revenues, Q4 Fiscal 2026QTL EBT was $918 million and QTL EBT as % of revenues was 70%. | $1.30B | – | (7%) |
| QCT revenues, Fiscal 2026Handsets revenues were $24,072 million, Automotive revenues were $6,004 million, and IoT revenues were $7,132 million. | $37.21B | – | (3%) |
| QTL revenues, Fiscal 2026QTL EBT was $4,022 million and QTL EBT as % of revenues was 72%. | $5.56B | – | — |
| QCT Handsets revenues, Q4 Fiscal 2026QCT revenue stream. | $5.14B | – | (26%) |
| QCT Automotive revenues, Q4 Fiscal 2026Record QCT Automotive Revenues: Achieved First $2B Quarter. | $1.99B | – | +89% |
| QCT IoT revenues, Q4 Fiscal 2026QCT revenue stream. | $1.89B | – | +4% |
| QCT Handsets revenues, Fiscal 2026QCT revenue stream. | $24.07B | – | (13%) |
| QCT Automotive revenues, Fiscal 2026QCT revenue stream. | $6.00B | – | +52% |
| QCT IoT revenues, Fiscal 2026QCT revenue stream. | $7.13B | – | +8% |
Q1 FY27 Estimates outlook
- Revenue$10.4B - $11.2B
- NoteQCT revenues: $9.0B - $9.6B
- NoteQTL revenues: $1.3B - $1.5B
- NoteGAAP diluted EPS: $1.03 - $1.23
- NoteNon-GAAP diluted EPS: $2.15 - $2.35
- NoteLess diluted EPS attributable to QSI: $—
- NoteLess diluted EPS attributable to share-based compensation: ($0.99)
- NoteLess diluted EPS attributable to other items: ($0.13)
- NoteGuidance as of the first quarter of fiscal 2027 is inclusive of Data Center.
Capital returns
- Q4 Fiscal 2026 stock repurchases: 6 million shares; $1,011 million.
- Q4 Fiscal 2026 dividend paid per share: $0.92; dividend amount: $987 million.
- Q4 Fiscal 2026 total return of capital to stockholders: $1,998 million.
- Fiscal 2026 stock repurchases: 48 million shares; $7,817 million.
- Fiscal 2026 dividend paid per share: $3.62; dividend amount: $3,854 million.
- Fiscal 2026 total return of capital to stockholders: $11,671 million.
What drove it
- Q4 Fiscal 2026 Automotive revenues were $1,990 million, up +89% year-over-year.
- Q4 Fiscal 2026 IoT revenues were $1,888 million, up +4% year-over-year.
- Combined QCT Automotive and IoT revenues grew 36% year-over-year.
- The company renewed long-term QTL license agreements with Apple, Huawei and Transsion.
- The company announced a multi-generational product collaboration with Amazon for AI Data Centers.
- Fiscal 2026 GAAP results included a $5.7 billion income tax benefit, or $5.32 per share, resulting from the release of a valuation allowance established in the fourth quarter of fiscal 2025.
Concerns
- Q4 Fiscal 2026 GAAP revenues declined (8%) and non-GAAP revenues declined (7%).
- Q4 Fiscal 2026 Handsets revenues declined (26%) to $5,137 million.
- Q4 Fiscal 2026 QCT EBT as % of revenues declined to 24% from 29%, a -5 points change.
- The semiconductor industry is experiencing a broad-based increase in input costs across wafer fabrication, assembly, test, advanced packaging, memory and other materials.
- The company anticipates the full benefit of pricing actions to be reflected in QCT gross margins in the second half of fiscal 2027.
- Fiscal 2026 non-GAAP net income declined (15%) and non-GAAP diluted EPS declined (12%).
What to watch
- Q1 FY27 revenue guidance of $10.4B - $11.2B.
- Q1 FY27 QCT revenue guidance of $9.0B - $9.6B and QTL revenue guidance of $1.3B - $1.5B.
- Q1 FY27 GAAP diluted EPS guidance of $1.03 - $1.23 and non-GAAP diluted EPS guidance of $2.15 - $2.35.
- Fiscal 2027 non-handset revenues are projected to grow by more than 60% year-over-year.
- The company reiterated its fiscal 2027 Data Center revenue target of $5B.
- Timing of full benefit from product pricing actions in QCT gross margins in the second half of fiscal 2027.
Balance sheet and cash flow
- Cash and cash equivalents at September 27, 2026: $4,636 million; September 28, 2025: $5,520 million.
- Marketable securities at September 27, 2026: $3,045 million; September 28, 2025: $4,635 million.
- Inventories at September 27, 2026: $8,640 million; September 28, 2025: $6,526 million.
- Short-term debt at September 27, 2026: $2,492 million; September 28, 2025: —.
- Long-term debt at September 27, 2026: $12,620 million; September 28, 2025: $14,811 million.
- Total assets at September 27, 2026: $60,829 million; September 28, 2025: $50,143 million.
- Total liabilities at September 27, 2026: $30,428 million; September 28, 2025: $28,937 million.
- Total stockholders’ equity at September 27, 2026: $30,401 million; September 28, 2025: $21,206 million.
- Fiscal 2026 net cash provided by operating activities: $11,145 million; Fiscal 2025: $14,012 million.
- Fiscal 2026 net cash used by investing activities: ($2,039) million; Fiscal 2025: ($800) million.
- Fiscal 2026 net cash used by financing activities: ($12,295) million; Fiscal 2025: ($13,196) million.
- Net decrease in total cash, cash equivalents and restricted cash in Fiscal 2026: ($3,207) million; Fiscal 2025: ($6) million.
Analysis
Qualcomm reported Q4 Fiscal 2026 GAAP revenues of $10,322 million, down (8%), and non-GAAP revenues of $10,442 million, down (7%). QCT revenues declined (8%) to $9,015 million and QTL revenues declined (7%) to $1,304 million. The principal divergence within QCT was Handsets, down (26%) to $5,137 million, versus Automotive, up +89% to $1,990 million, and IoT, up +4% to $1,888 million.
Q4 profitability declined on the operating measures presented. GAAP operating income was $1,356 million versus $2,918 million, while non-GAAP operating income was $2,769 million versus $3,808 million. QCT EBT as % of revenues declined to 24% from 29%, and QTL EBT as % of revenues declined to 70% from 72%. The release identifies broad-based increases in input costs and states that the full benefit of related product pricing actions is anticipated in QCT gross margins in the second half of fiscal 2027.
Fiscal 2026 GAAP net income rose +146% to $13,628 million and GAAP diluted EPS rose +153% to $12.70. These results included a $5.7 billion income tax benefit, or $5.32 per share, from the release of a valuation allowance. On a non-GAAP basis, Fiscal 2026 revenue declined (2%) to $43,240 million, net income declined (15%) to $11,311 million, and diluted EPS declined (12%) to $10.54. Fiscal 2026 operating cash flow was $11,145 million, compared with $14,012 million, while capital expenditures were ($2,494) million.
Capital returns totaled $11,671 million in Fiscal 2026, comprising $7,817 million of stock repurchases and $3,854 million of dividends paid. Cash and cash equivalents were $4,636 million at September 27, 2026, with short-term debt of $2,492 million and long-term debt of $12,620 million. For Q1 FY27, Qualcomm guided revenue to $10.4B - $11.2B and non-GAAP diluted EPS to $2.15 - $2.35. The company also said Q1 FY27 guidance is inclusive of Data Center, projected fiscal 2027 non-handset revenue growth of more than 60% year-over-year, and reiterated its fiscal 2027 Data Center revenue target of $5B.
Management, verbatim
We are pleased to deliver fourth quarter non-GAAP revenues at the high end of our guidance, along with 36% year-over-year growth in combined QCT Automotive and IoT revenues.
Cristiano Amon, President and CEO of Qualcomm Incorporated
Fiscal 2027 marks the start of our non-handset revenue inflection, including the ramp of our Data Center business. Non-handset revenues are projected to grow by more than 60% year-over-year, and we are reiterating our fiscal 2027 Data Center revenue target of $5B.
Cristiano Amon, President and CEO of Qualcomm Incorporated
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
- Gross margin was not reported for Q4 Fiscal 2026 or Fiscal 2026.
- Free cash flow was not reported.
- Prior-quarter values and sequential comparisons were not reported for the listed operating metrics.
- Q1 FY27 guidance for gross margin, operating expenses and tax rate was not provided.
- A revenue outlook by Handsets, Automotive and IoT was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Qualcomm's FY2026 earnings were released via an SEC Form 8‑K, highlighting record automotive revenue and a data‑center revenue target for FY27.
Ticker impact
Qualcomm disclosed its Q4 FY2026 results and provided FY2027 guidance, including a $5B data‑center revenue target.
likely modest upside as the market prices in strong data‑center growth and issued FY27 outlook
The earnings release contains fresh, material numbers for a large‑cap chipmaker and sets a clear revenue target for a high‑growth segment, giving traders a concrete basis for positioning.
Market effects
Signals continued strength in semiconductor data‑center and automotive segments, supporting peers in the chip sector.
U.S. tech equities may see a lift, especially other fabless and data‑center suppliers.
Reinforces bullish outlook for global semiconductor demand, especially in AI‑driven workloads.
Counterpoint
If the guidance is overly optimistic, a pull‑back could occur if macro headwinds hit wafer pricing.
Key entities
- ExecutiveCristiano Amon
President and CEO of Qualcomm, quoted on the earnings release.
