Revenue: As of FY2026 Q1, the actual value is USD 12.25 B.EPS: As of FY2026 Q1, the actual value is USD 2.78, beating the estimate of USD 2.7505.EBIT: As of FY2026 Q1, the actual value is USD 3.399 B.<h4>Overall Financial Performance (Three Months Ended December 28, 2025 vs. December 29, 2024)</h4><ul><li>Total Revenues: QUALCOMM Incorporated’s total revenues increased to $12,252 million in the three months ended December 28, 2025, up from $11,669 million in the prior year quarter, representing a $583 million increase.</li><li>Net Income: Net income for the three months ended December 28, 2025, was $3,004 million, a decrease from $3,180 million in the same period of the previous year.</li><li>Gross Margin: The gross margin percentage decreased to 55% in the first quarter of fiscal 2026, down from 56% in the prior year quarter, primarily due to a decrease in QCT gross margin percentage.</li><li>Operating Expenses:<ul><li>Research and Development (R&amp;D) expenses increased by $223 million to $2,453 million in the three months ended December 28, 2025, from $2,230 million in the prior year, primarily driven by a $121 million increase in costs related to wireless and integrated circuit technologies development and an $85 million increase in share-based compensation expense.</li><li>Selling, General and Administrative (SG&amp;A) expenses increased by $142 million to $865 million in the three months ended December 28, 2025, from $723 million in the prior year, mainly due to a $50 million rise in share-based compensation expense, a $40 million increase in acquisition-related expenses, and a $31 million increase in sales and marketing expenses.</li></ul></li><li>Interest Expense: Interest expense was $169 million in the three months ended December 28, 2025, up from $163 million in the prior year.</li><li>Investment and Other Income, Net: Investment and other income, net increased to $350 million from $243 million in the prior year, primarily driven by higher net gains on certain non-marketable equity investments.</li><li>Income Tax Expense: The income tax expense was $543 million, resulting in an effective tax rate of 15% for the three months ended December 28, 2025, compared to $455 million and an effective tax rate of 13% in the prior year.</li></ul><h4>Segment Performance (Three Months Ended December 28, 2025 vs. December 29, 2024)</h4><ul><li>Qualcomm CDMA Technologies (QCT) Segment:<ul><li>Revenues: Increased by $529 million to $10,613 million from $10,084 million in the prior year.<ul><li>Handsets revenue: Increased by $250 million to $7,824 million, primarily due to higher chipset shipments to certain major OEMs.</li><li>Automotive revenue: Increased by $140 million to $1,101 million, primarily driven by increased shipments from new vehicle launches with Snapdragon digital cockpit products.</li><li>IoT revenue: Increased by $139 million to $1,688 million, due to higher shipments across edge networking and consumer products, partially offset by unfavorable product mix.</li></ul></li><li>Earnings Before Income Taxes (EBT): Increased by $56 million to $3,302 million.</li><li>EBT as a percentage of revenues: Decreased by 1 point to 31%.</li></ul></li><li>Qualcomm Technology Licensing (QTL) Segment:<ul><li>Revenues: Increased by $57 million to $1,592 million from $1,535 million in the prior year, primarily due to an increase in estimated sales of cellular products.</li><li>EBT: Increased by $73 million to $1,231 million.</li><li>EBT as a percentage of revenues: Increased by 2 points to 77%.</li></ul></li><li>Qualcomm Strategic Initiatives (QSI) Segment:<ul><li>Revenues: Remained $0 million for both periods.</li><li>EBT: Increased significantly by $160 million to $179 million, primarily due to higher net gains from observable price changes on certain non-marketable equity investments, partially offset by losses from changes in the fair value of marketable equity investments.</li></ul></li></ul><h4>Cash Flow (Three Months Ended December 28, 2025 vs. December 29, 2024)</h4><ul><li>Net cash provided by operating activities: Increased by $378 million to $4,965 million.</li><li>Net cash used by investing activities: Increased by $1,050 million to -$1,721 million.</li><li>Net cash used by financing activities: Increased by $874 million to -$3,882 million.</li><li>Total cash and cash equivalents at end of period: Was $7,205 million.</li></ul><h4>Liquidity and Capital Resources</h4>As of December 28, 2025, QUALCOMM Incorporated had $11,822 million in cash, cash equivalents, and marketable securities (including restricted cash). The net decrease in these assets was primarily due to $2,650 million in common stock repurchases, -$1,090 million in cash paid for acquisitions and other investments, $949 million in cash dividends paid, and $549 million in capital expenditures, partially offset by operating cash flows.<h4>Strategic Summary and Outlook</h4>QUALCOMM Incorporated expects continued growth driven by on-device AI and high-performance, low-power computing combined with cellular technology, expanding into automotive and IoT. The company anticipates challenges from memory supply constraints affecting handset demand and increased product costs from leading process technology nodes. QUALCOMM Incorporated also foresees intensified competition, particularly from customer vertical integration, and potential adverse effects from U.S./China trade and national security tensions.

QCOM

- Qualcomm Incorporated reported Q1 2026 revenue of $12.3 billion and earnings per share of $2.78, exceeding market expectations.  
- The company experienced a 5% revenue increase from Q1 2025, yet net profit saw a 6% decline, primarily due to rising operational costs and a drop in gross margin.  
- Qualcomm plans to maintain leadership in technology and anticipates negative impacts on financial performance from supply constraints and increasing competition from Apple's modem products.

Qualcomm | 10-Q: FY2026 Q1 Revenue: USD 12.25 B