$QCOM

Qualcomm Non-GAAP EPS of $2.65 beats by $0.09, revenue of $10.59B in-line
Q2 Non-GAAP EPS of $2.65 beats by $0.09.
Revenue of $10.59B (-3.6% Y/Y) in-line.
QCT revenue of $9.08B, down 4%, QTL revenue of $1.38B, up 5%.
Q3 Guidance: Revenue in the range of $9.2B-$10.0B vs $10.18B consensus, Non-GAAP EPS of $2.10-$2.30 vs $2.43 consensus
Qualcomm's Q2 financial results feature 13% decline in handset revenue
Qualcomm (QCOM) released its second quarter fiscal 2026 financial results post-market on Wednesday.
For the quarter ended March 31, the computing and licensing company reported adjusted earnings per share of $2.65 versus the consensus estimate of $2.56.
Revenue for the second quarter decreased 3% year over year to $10.6B, which was in line with the estimate of $10.59B. On a segment basis, handset revenue declined 13% year over year to $6.02B, automotive increased 38% to $1.32B, and IoT climbed 9% to $1.72B. QTL revenue increased 4.8% to $1.38B
During the quarter, Qualcomm recorded a $5.7B income tax benefit, or $5.33 per share, from the release of a valuation allowance that was established in the fourth quarter of fiscal 2025. The company also spent $2.8B through its share buyback program.
Looking ahead, Qualcomm expects a third-quarter revenue midpoint of $9.6B versus the $10.26B estimate and an adjusted EPS midpoint of $2.20 compared to the $2.43 estimate.
"We are pleased to deliver results in line with our guidance, reflecting solid execution as we navigate a challenging memory environment," said CEO Cristiano Amon. "We are in a period of profound industry transformation—the rise of AI agents is reshaping our roadmap across every platform we develop. We are equally excited by our entry into the data center, where a leading hyperscaler custom silicon engagement is on track for initial shipments later this calendar year."
Qualcomm said the third quarter will likely mark the bottom regarding its China Android revenues. Automotive is also expected to grow with a year-over-year acceleration during the third quarter.
Earnings Snapshot: Qualcomm tops Q2 estimates, but Q3 guidance falls short