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QUALCOMM Incorporated
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Automotive Revenue Records: Qualcomm Diversifies Beyond Handsets (QCOM Q2 2026 Earnings Call)

By Dr. Graph | Updated on May 26, 2026 | earnings

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Qualcomm Incorporated delivered stable fiscal second-quarter performance, driven by a record expansion in automotive and robust IoT sales that successfully offset industry-wide memory headwinds. The company is actively executing on its long-term diversification strategy, transitioning from a smartphone-focused provider into an edge computing leader. This ongoing transition is powered by structural growth in agentic artificial intelligence workloads running continuously across connected devices.

Record Segment Performance Propels Stable Second Quarter Revenues

Qualcomm generated stable total revenues of $10.6 billion in the fiscal second quarter. High-end product execution led to non-GAAP earnings per share of $2.65, which reached the top end of the company's guidance range. This stable bottom-line performance was supported by combined QCT automotive and IoT revenues growing 20% year-over-year to underscore the success of Qualcomm's ongoing diversification efforts.

Cautious Handset Inventory Management Shapes Near Term Third Quarter Outlook

For the third fiscal quarter, Qualcomm projects total revenues in the range of $9.2 billion to $10.0 billion as Chinese handset customers temporarily reduce build plans. Handset manufacturers are actively drawing down channel inventory due to memory pricing and supply uncertainties. Consequently, the company forecasts third-quarter QCT handset revenue of approximately $4.9 billion. Chief Financial Officer Akash Palkhiwala stated: "While our near-term revenues are impacted by memory industry cyclical dynamics, we're confident in the underlying fundamentals around Snapdragon product leadership and content growth opportunities."

Advanced Digital Chassis Architectures Drive Record Automotive Momentum

QCT Automotive delivered another record quarter with revenues of $1.3 billion, representing 38% year-over-year growth. This expansion is driven by strong cockpit and driver assistance demand across the fourth-generation platform. Looking forward, Qualcomm expects to begin commercial shipments of its fifth-generation Snapdragon digital chassis by the end of the fiscal year. This upcoming platform features a 12x increase in neural processing unit capability to support advanced in-vehicle artificial intelligence agents.

Hyperscaler Engagements and Stable Partner Frameworks Secure Future Pipelines

During the analyst session, CEO Cristiano Amon addressed the multiyear licensing and supply framework with Samsung. Amon confirmed that the partnership remains highly stable with a planned share of greater than 70% for both this year and next year. Additionally, Chief Financial Officer Akash Palkhiwala reconfirmed the long-standing assumption regarding Apple, projecting a 20% modem share for the upcoming fall smartphone launches. Qualcomm is also entering the custom silicon market, expecting initial shipments to a leading hyperscaler during the December quarter.

Disclaimer: This report is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research or consult a qualified professional before investing. Past performance is not indicative of future results.

Frequently Asked Questions

How many vehicles are currently equipped with Qualcomm's advanced driver assistance systems?
Qualcomm has successfully deployed its Snapdragon Ride processors in more than 1 million cars operating active driver assistance and autonomous driving systems on the road.
How does Qualcomm's new PC platform compare to competitors in local artificial intelligence performance?
The Snapdragon X2 platform features an on-device neural processing unit delivering up to 85 TOPS of performance. This architecture allows the chipset to outperform comparable laptop solutions from Intel by nearly 30% in running continuous local agentic workloads.
What were the key drivers and margins for Qualcomm's licensing business during the second fiscal quarter?
The QTL licensing segment generated Q2 revenues of $1.4 billion. Favorable product mix and stable global handset volumes supported an EBT margin of 72%, which hit the upper end of company expectations.