Qualcomm Reports Q2 Fiscal Year 2026 Results: Mobile Chip Sales Down 13%, Automotive and IoT Remain Strong
Qualcomm announced its fiscal year 2026 second quarter financial results on April 29th local time. The company's total revenue for the quarter was $10.6 billion, with non-GAAP earnings per share of $2.65, meeting expectations. Automotive and IoT businesses maintained strong growth, demonstrating the significant effectiveness of the company's diversification strategy.
Qualcomm's GAAP revenue for the quarter was $10.6 billion, down 3% year-over-year; non-GAAP revenue decreased 2% year-over-year, roughly in line with market expectations.
In terms of profitability, GAAP net profit reached $7.4 billion, a significant increase of 162% year-over-year, mainly due to tax benefits related to the corporate alternative minimum tax; non-GAAP net profit was $2.8 billion, down 10% year-over-year.
Notably, non-GAAP earnings per share were $2.65, higher than the market expectation of $2.55, at the high end of the company's previously provided guidance range, exceeding market expectations.
From a business structure perspective, a clear differentiation trend emerged. Semiconductor business (QCT) revenue was $9.1 billion.
Looking at the breakdown, mobile chip revenue was $6 billion, down 13% year-over-year, affected by tight storage supply and weak industry shipments;
Automotive electronics performed brightly, with revenue reaching $1.33 billion, a substantial increase of 38% year-over-year, setting a new single-quarter record; IoT revenue was $1.73 billion, up 9% year-over-year.
Combined revenue from automotive and IoT businesses increased 20% year-over-year, becoming a core pillar to offset fluctuations in mobile business and support the company's stable performance. In addition, technology licensing business (QTL) revenue was $1.4 billion, maintaining a steady level of profitability.
Qualcomm CEO Cristiano Amon stated that the company performed steadily in a complex storage environment, and its performance met guidance. The industry is currently undergoing profound changes, with on-device AI reshaping the product roadmap across all categories, and the mobile market is nearing the bottom, with an expected gradual recovery after the third quarter.
The company will continue to focus on data centers and embodied AI, delivering custom data center chips to leading cloud service providers in the second half of the year, with related strategies to be detailed at the Investor Day on June 24th.
In terms of financial operations, Qualcomm has completed $5.4 billion in stock repurchases in the first half of fiscal year 2026 and announced an additional $20 billion repurchase authorization, demonstrating confidence in long-term value.
In addition, the company's gross margin remained at 53.8% this quarter, maintaining overall profitability.