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automotive technology

Qualcomm Revenue Rose 5% to $12.25 Billion in Fiscal Q1 2026—but Outlook Cooled

Qualcomm posted record fiscal Q1 2026 revenue of $12.252 billion, while weaker GAAP profit and memory-related handset risks made the outlook more cautious.

By TheFinanceBase Team 3 min read

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Qualcomm reported record fiscal first-quarter 2026 revenue of $12.252 billion, up 5% from $11.669 billion a year earlier. The quarter ended December 28, 2025, and results were released February 4, 2026. The headline was strong, but weaker GAAP profit and cautious second-quarter guidance—particularly the effect of industry-wide memory constraints on handset customers—made the report less straightforward than the revenue number suggests.

This is a historical February 2026 report, not Qualcomm’s newest financial result. Qualcomm’s investor-relations page now displays a later quarter, including $9.9 billion in GAAP revenue: Qualcomm investor relations.

The headline financial results

Qualcomm’s release reports the following comparison with fiscal Q1 2025:

Measure Q1 FY2026 Q1 FY2025 Year over year
Revenue $12.252 billion $11.669 billion +5%
GAAP EBT $3.547 billion $3.635 billion -2%
Non-GAAP EBT $4.372 billion $4.427 billion -1%
GAAP net income $3.004 billion $3.180 billion -6%
Non-GAAP net income $3.781 billion $3.830 billion -1%
GAAP diluted EPS $2.78 $2.83 -2%
Non-GAAP diluted EPS $3.50 $3.41 +3%

Revenue is the same under Qualcomm’s GAAP and non-GAAP presentations. The difference between the two reporting measures primarily affects earnings and adjustment lines. Therefore, “earnings rose” would be imprecise: adjusted diluted EPS increased 3%, while GAAP net income and GAAP diluted EPS declined.

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The company’s complete filing is available in its SEC-hosted release: Qualcomm Q1 FY2026 earnings release.

QCT supplied most of the growth

Qualcomm has two principal reportable businesses. QCT sells semiconductors and related products, while QTL licenses Qualcomm’s intellectual property. QCT remained the dominant business, producing about 87% of total reported revenue.

Segment or stream Q1 FY2026 revenue Year over year
QCT $10.613 billion +5%
QTL $1.592 billion +4%
QCT handsets $7.824 billion +3%
QCT automotive $1.101 billion +15%
QCT IoT $1.688 billion +9%

Handsets were still the largest business

Handset chips generated $7.824 billion, considerably more than either automotive or IoT. However, the 3% increase was slower than the growth rates in Qualcomm’s newer diversification areas. That means the company remains materially exposed to smartphone production even as other businesses expand.

Automotive and IoT grew faster

Automotive revenue rose 15% to $1.101 billion, exceeding $1 billion for the second consecutive quarter. IoT revenue increased 9% to $1.688 billion. These figures support Qualcomm’s diversification strategy, but faster percentage growth does not make either business larger than handsets in absolute dollars.

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Why the second-quarter outlook unsettled investors

For fiscal Q2 2026, Qualcomm forecast:

Measure Company guidance
Total revenue $10.2 billion–$11.0 billion
QCT revenue $8.8 billion–$9.4 billion
QTL revenue $1.2 billion–$1.4 billion
GAAP diluted EPS $1.69–$1.89
Non-GAAP diluted EPS $2.45–$2.65

Qualcomm said this outlook included the effects of memory-supply constraints and related pricing pressure on demand from several handset customers. The warning describes an industry-wide problem rather than a shortage unique to Qualcomm.

How memory costs can reduce chip demand

  • More expensive memory raises a phone’s bill of materials.
  • Manufacturers may delay launches, reduce memory configurations, increase retail prices, or produce fewer units.
  • Lower production plans can reduce orders for application processors and connectivity chips, even if demand for premium phones remains healthy.

Qualcomm said it remained encouraged by premium and high-tier smartphone demand. The guidance therefore signals a near-term customer and production risk, not proof that consumers had broadly abandoned smartphones.

Why a record-revenue quarter could still hurt the stock

Contemporary market coverage reported that Qualcomm shares fell more than 5% after the results as investors focused on the weaker outlook and memory issue. That is a market reaction, not a measure that the quarter was operationally poor. Investors value expected future cash flows, so a cautious forecast can outweigh a record historical revenue figure. The broad reaction is reported by Techmeme’s February 4, 2026 roundup; no precise closing or intraday price is established here.

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What AI and data centers mean in this report

Chief executive commentary cited momentum in personal AI, industrial AI, and physical AI. Qualcomm also highlighted the completed acquisition of Alphawave IP Group and its intention to expand into data-center technologies.

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Those statements are strategic context, not a separately disclosed AI revenue line. The reported revenue categories were handsets, automotive, IoT, QCT, QTL, and total company revenue. AI and data-center ambitions remain dependent on execution, customer adoption, competition, and broader market conditions.

Capital returned to shareholders

Qualcomm said it returned $3.6 billion to stockholders during Q1 FY2026:

  • $949 million in cash dividends, equal to $0.89 per share.
  • $2.6 billion in share repurchases, covering approximately 15 million shares.

These distributions matter to investors but are separate from the company’s operating performance.

How to read the quarter

  • Top line: Revenue reached a record $12.252 billion, up 5% year over year.
  • Profitability: GAAP net income fell 6% and GAAP diluted EPS fell 2%; adjusted EPS rose 3%.
  • Mix: Handsets remained the largest QCT stream, while automotive and IoT grew faster.
  • Risk: Memory costs and supply constraints could reduce handset customers’ near-term production and orders.
  • Strategy: AI, data centers, automotive, and IoT are growth initiatives, not separately reported AI earnings in this quarter.

Qualcomm’s fiscal Q1 2026 was therefore a strong revenue quarter with improving diversification, but not an across-the-board earnings gain. The immediate investment question shifted from what the company had just delivered to how severely memory constraints would affect handset demand in the following quarter.

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