Qualcomm Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 4 February 2026: press release. Guidance figures: 8 new. The quarter’s numbers.

Read the filing

Key takeaways

• Record revenue; GAAP EPS down: Revenues rose 5% to $12,252 million, a record for the company. GAAP diluted EPS was $2.78, down 2% from $2.83; non-GAAP diluted EPS was $3.50, up 3% from $3.41. Source
• Pre-tax income down on both bases: Earnings before taxes were $3,547 million on a GAAP basis, down 2%, and $4,372 million on a non-GAAP basis, down 1% from the year-earlier period. Source
• QCT revenue up 5%, margin 31%: QCT revenues were $10,613 million, up 5%. QCT EBT was $3,302 million, up 2%, or 31% of revenues against 32% a year earlier. Source
• Automotive above $1 billion again: QCT Automotive revenue was $1,101 million, up 15%, the second consecutive quarter above $1 billion. Source
• Returned $3.6 billion to stockholders: The company returned $3.6 billion to stockholders: $949 million of dividends, or $0.89 per share, and $2.6 billion of repurchases of 15 million shares. Source
• Alphawave sits in Data Center segment: Alphawave IP Group plc is included in the Data Center nonreportable segment, and the company's guidance includes the acquisition. Source

“While our near-term handsets outlook is impacted by industry-wide memory supply constraints, we are encouraged by end-consumer demand for premium and high tier smartphones”

Cristiano Amon, President and CEO of Qualcomm Incorporated

Guidance

What changed from last quarter

• New: Completed the acquisition of Alphawave Semi, described as accelerating expansion into data centers. Source
• New guidance: Second-quarter fiscal 2026 estimates appear in this release for revenue, QCT, QTL, GAAP EPS and non-GAAP EPS. Source

Results and growth drivers

• Record revenue; GAAP EPS down: Revenues rose 5% to $12,252 million, a record for the company. GAAP diluted EPS was $2.78, down 2% from $2.83; non-GAAP diluted EPS was $3.50, up 3% from $3.41. Source
• Pre-tax income down on both bases: Earnings before taxes were $3,547 million on a GAAP basis, down 2%, and $4,372 million on a non-GAAP basis, down 1% from the year-earlier period. Source
• Net income lower on both bases: GAAP net income was $3,004 million, down 6%, and non-GAAP net income was $3,781 million, down 1%. Source
• Equipment and licensing both grew: Equipment and services revenue was $10,466 million, against $9,942 million. Licensing revenue was $1,786 million, against $1,727 million. Source

Segments and revenue streams

• QCT revenue up 5%, margin 31%: QCT revenues were $10,613 million, up 5%. QCT EBT was $3,302 million, up 2%, or 31% of revenues against 32% a year earlier. Source
• QTL revenue up 4%, margin 77%: QTL revenues were $1,592 million, up 4%. QTL EBT was $1,231 million, up 6%, or 77% of revenues against 75% a year earlier. Source
• Automotive above $1 billion again: QCT Automotive revenue was $1,101 million, up 15%, the second consecutive quarter above $1 billion. Source
• IoT revenue up 9%: IoT revenue was $1,688 million, up 9% from $1,549 million a year earlier. Source

“Our momentum across personal, industrial and physical AI is growing, as evidenced by recent product announcements at CES and customer traction.”

Cristiano Amon, President and CEO of Qualcomm Incorporated

Costs, margins and pricing

• Cost lines rose year over year: Cost of revenues was $5,568 million against $5,161 million. R&D was $2,453 million against $2,230 million, and SG&A was $865 million against $723 million. Source
• Operating income declined: GAAP operating income was $3,366 million against $3,555 million, while total costs and expenses rose to $8,886 million from $8,114 million. Source
• Share-based compensation excluded at operating income: Non-GAAP operating income of $4,414 million excluded $892 million of share-based compensation and $153 million of other items, from GAAP operating income of $3,366 million. Source
• Acquisition and deferred pay items excluded: Non-GAAP results excluded $105 million of acquisition-related charges and $6 million of restructuring charges, plus $42 million of deferred compensation revaluation losses offset in investment income. Source
• GAAP tax expense higher: GAAP income tax expense was $543 million against $455 million, on income before taxes of $3,547 million. Source

Working capital and receivables

• Inventories rose slightly: Inventories were $6,665 million at December 28, 2025, against $6,526 million at September 28, 2025. Source
• Receivables declined: Accounts receivable, net were $4,153 million, against $4,315 million at September 28, 2025. Source
• Unearned revenue edged higher: Current unearned revenues were $379 million against $358 million, and noncurrent unearned revenues were $79 million against $71 million. Source

Capital, cash and shareholder returns

• Operating cash flow and capex higher: Net cash provided by operating activities was $4,965 million, against $4,587 million. Capital expenditures were $549 million, against $277 million. Source
• Returned $3.6 billion to stockholders: The company returned $3.6 billion to stockholders: $949 million of dividends, or $0.89 per share, and $2.6 billion of repurchases of 15 million shares. Source
• Buybacks and dividends paid in cash: Repurchases and retirements of common stock were $2,650 million, against $1,750 million, and dividends paid were $949 million, against $942 million. Source
• Acquisition spending and goodwill rose: Acquisitions and other investments, net of cash acquired, were $1,090 million against $260 million. Goodwill rose to $14,183 million from $11,358 million. Source
• Cash higher as restricted cash fell: Cash and cash equivalents were $7,205 million against $5,520 million, and restricted cash was nil against $2,323 million at September 28, 2025. Source

Strategy and reporting basis

• Alphawave sits in Data Center segment: Alphawave IP Group plc is included in the Data Center nonreportable segment, and the company's guidance includes the acquisition. Source
• QSI excluded from non-GAAP results: QSI is excluded from non-GAAP results because the company generally expects to exit its strategic investments in the foreseeable future. Source
• Share-based compensation excluded: Share-based compensation, which primarily relates to restricted stock units, is excluded from non-GAAP results to allow comparisons of core operations over time. Source

Earlier plans management reported on

• On track: Management said it remains on track to achieve its fiscal 2029 revenue goals. The release gives no figures for those goals. Source

Other quarters

• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.