Key Highlights

  • Fiscal 2026 Revenue was USD 43.12 billion against USD 44.28 billion; Net Income USD 13.63 billion versus USD 5.54 billion.
  • GAAP diluted EPS was USD 12.70 against USD 5.01, and the figure includes a USD 5.7 billion income tax benefit.
  • Automotive revenue was USD 6.0 billion against USD 3.96 billion; handsets revenue was USD 24.07 billion against USD 27.79 billion.
  • Repurchases of USD 7.8 billion and dividends of USD 3.9 billion were paid; USD 19.6 billion of repurchase authority remained.

How did a year of lower handset revenue and higher research spending end with net income of USD 13.63 billion? QUALCOMM Incorporated (NASDAQ:QCOM) answers that in its fiscal 2026 report for the year ended September 27, 2026. Revenue was USD 43.12 billion against USD 44.28 billion in fiscal 2025. GAAP diluted EPS for the full year was USD 12.70, against USD 5.01 in fiscal 2025.

Strategy: Diversifying Beyond Handsets

The company describes its platforms as spanning handsets, automotive, IoT and data center, built on Snapdragon, Dragonwing and Dragonfly products. Research and Development expense was USD 10.21 billion against USD 9.04 billion, and the company cited Investment in the Data Center business, higher employee costs and lower engineering cost reimbursements.

Inside the QCT chip segment, revenue was USD 37.21 billion against USD 38.37 billion. Handsets revenue was USD 24.07 billion against USD 27.79 billion, which the company linked to lower chipset shipments to certain major OEMs as customers adjusted build plans after memory Supply constraints and price increases. Automotive revenue was USD 6.00 billion against USD 3.96 billion, and IoT revenue was USD 7.13 billion against USD 6.62 billion. QCT Earnings before taxes were USD 10.10 billion against USD 11.67 billion, at 27% of revenue against 30%.

Licensing, Investments and the Tax Benefit

QTL licensing revenue was USD 5.56 billion against USD 5.58 billion, with earnings before taxes of USD 4.02 billion at 72% of revenue in both years. The strategic investments segment reported earnings before taxes of USD 794 million against USD 180 million.

Gross Margin was 53% against 55%. In the second fiscal quarter the company released a valuation allowance on federal deferred tax assets, which produced a USD 5.7 billion income tax benefit and an income tax benefit of USD 4.21 billion for the year, against an expense of USD 7.12 billion in fiscal 2025.

Cash, Debt and Capital Returns

Operating cash flow was USD 11.15 billion against USD 14.01 billion. Cash, cash equivalents and marketable securities, including restricted cash, were USD 7.68 billion against USD 12.48 billion, with debt of USD 15.11 billion. Of that debt, USD 2.0 billion matures in 2027, and USD 499 million of Commercial Paper was outstanding.

The company repurchased 48 million shares for USD 7.82 billion at an average price of USD 161.96 and paid dividends of USD 3.85 billion, or USD 3.62 per share. It announced a new USD 20.0 billion repurchase authorization on March 17, 2026, and USD 19.6 billion remained at year end. Capital expenditures were USD 2.5 billion.

Reference Points for Investors

Fiscal 2026 revenue of USD 43.12 billion sits alongside net income of USD 13.63 billion, Operating Cash Flow of USD 11.15 billion and USD 11.67 billion returned through Buybacks and dividends.

Management named several forward items. Management projects Data Center revenue growth from the first fiscal quarter of 2027 as shipments begin under custom silicon agreements with large hyperscale customers, and that Business moves into the QCT segment in that quarter. The company is raising product prices in response to higher supplier costs, with the full benefit in gross margins projected for the second half of fiscal 2027. It also said Apple currently uses its own modem in certain smartphones, and that memory constraints weigh on Demand from several handset OEMs.