$QCOM earnings report

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.

Qualcomm reported Q3 Fiscal 2026 GAAP revenues of $9,947, down (4%) from $10,365 in Q3 Fiscal 2025. GAAP EBT declined (17%) to $2,462, GAAP net income declined (25%) to $2,002, and GAAP diluted EPS declined (23%) to $1.87. Non-GAAP net income was $2,356, down (23%), while non-GAAP diluted EPS was $2.21, down (20%). The company described quarterly revenue as being at the high end of guidance, but the prior outlook was not provided with this filing text.

QCT revenue was $8,504, down (5%), led by a (20%) decline in Handsets revenue to $5,086. Automotive was the principal growth contributor, rising +61% to 1,588, while IoT revenue increased +9% to 1,830. QCT EBT fell (18%) to $2,192 and QCT EBT as a percentage of revenues fell to 26% from 30%, showing that the lower handset revenue coincided with reduced segment profitability.

QTL revenue was $1,278, down (3%), with EBT declining (6%) to $881. QTL EBT as a percentage of revenues was 69%, compared with 71% in Q3 Fiscal 2025. The company also flagged a broad-based increase in semiconductor input costs, including wafer fabrication, assembly, test, advanced packaging, memory and other materials. Qualcomm stated that product-pricing actions are intended to reflect these higher costs and benefit gross margins over time.

For Q4 FY26, Qualcomm guided revenues to $9.7B - $10.5B, including QCT revenues of $8.4B - $9.0B and QTL revenues of $1.2B - $1.4B. GAAP diluted EPS guidance is $1.22 - $1.42 and non-GAAP diluted EPS guidance is $2.05 - $2.25. Capital returns totaled $2.3 billion during the quarter, including $973 million of cash dividends and $1.4 billion of repurchases of 8 million shares of common stock. The filing also highlights the completed acquisition of Modular Inc and management's stated fiscal 2027 and fiscal 2029 ambitions for non-handset revenue growth.