QUALCOMM Incorporated Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹243

Market cap₹2.6L Cr

P/E26.7

Updated29 May 2026

Read4 min read

What the Q2 FY26 call signalled

2 of 3 strong

RevenueRank 2

MarginRank 3

CapexYes

Not discussed on this call: fundraise, order book.

The short version

- Qualcomm expects QCT IoT revenues to grow by high single digits year-over-year, driven by industrial and consumer products. - Qualcomm delivered Q2 revenues of $10.6 billion and non-GAAP EPS of $2.65, at the high end of guidance.

From QUALCOMM Incorporated's Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Rank 2

Qualcomm expects QCT IoT revenues to grow by high single digits year-over-year, driven by industrial and consumer products.
Automotive segment revenue growth is accelerating, with a forecasted ~50% year-over-year increase in the third fiscal quarter.
Diversification with combined automotive and IoT revenues growing 20% year-over-year aligns with long-term targets.
China QCT handset revenues are expected to bottom in fiscal Q3 2026 and show sequential growth thereafter, despite current cautious OEM build plans due to memory dynamics.
Premium and high-tier handset markets remain strong, with limited weakness in mid- and low tiers; memory allocation favors high-end devices.
Agentic AI smartphones and AI-driven upgrade cycles anticipated to drive premium demand growth into fiscal 2027 and beyond.
Initial shipments of custom silicon for a leading hyperscaler expected late 2026, signaling growth in the data center business.
6G technology launches targeted for 2029, with scaling by 2030, representing a new long-term growth avenue.

Profitability & Margins

Qualcomm delivered Q2 revenues of $10.6 billion and non-GAAP EPS of $2.65, at the high end of guidance.
QTL operating margins expected at 67%-71% in Q3, with revenues of $1.15 billion to $1.35 billion.
QCT revenues forecasted at $7.9 billion to $8.5 billion, with operating margins of 25%-27%.
QCT handset revenues to bottom in Q3 due to memory industry dynamics, returning to sequential growth in Q4.
Automotive segment expected to grow around 50% year-over-year in Q3, accelerating revenue contribution.
Long-term confidence in Snapdragon leadership and growing content, including agentic AI adoption, supports secular growth.
Data center custom silicon engagement launching later this year adds a new growth avenue.
Qualcomm expects to meet long-term revenue targets, with diversification across automotive, IoT, and emerging AI/data center markets.
Investor Day on June 24 will provide further details on growth initiatives and roadmap.

See what QUALCOMM Incorporated said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Yes

Based on the transcript from pages 3 to 11 of "1039194-26836.pdf," the following points relate to current and future capital or strategic investments by Qualcomm: - Acquisition of Alphawave: Enhances Qualcomm’s capabilities in custom ASICs and connectivity IP, increasing execution capacity in data center solutions. - Investment in Data Center & AI: Developing custom silicon for hyperscalers with initial shipments expected later this year; multi-generation customer engagements planned. - 6G Strategic Initiative: Qualcomm is investing in 6G technology as a major long-term growth driver, focusing on AI-native networks, advanced connectivity, and end-to-end solutions from devices to networks. - Developing Agentic AI Solutions: Building CPUs and accelerators tailored for agentic AI experiences in data centers and edge devices. - Capital Return Program: Returned $3.7 billion to stockholders last quarter including $2.8 billion in share repurchases and $945 million in dividends. No specific dollar amounts for future capex were disclosed; further details are expected at the June 24 Investor Day.

Fundraising & Capital Structure

The transcript does not mention any current or planned fundraising through debt or equity. Key points related to financial activities include: - Qualcomm returned $3.7 billion to stockholders in the quarter via $2.8 billion in share repurchases and $945 million in dividends, indicating strong cash flow. - There is no indication of new debt issuance or equity offering. - The company focuses on executing growth initiatives and capital return programs. - No mention of fundraising activities or capital raises in the current or upcoming periods. In summary, Qualcomm has not disclosed any plans for new fundraising through debt or equity at this time.

See what QUALCOMM Incorporated said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

- Qualcomm has a multi-generation engagement with a large hyperscaler for custom silicon, with initial shipments expected later this calendar year (2023) (Page 5, 7, 11). - The company has several ongoing engagements with hyperscalers, combining merchant and custom ASIC approaches (Page 11). - The custom engagement mentioned is expected to be accretive at the operating margin level (Page 11). - Qualcomm expects initial shipments of their custom silicon engagement in the December quarter (Page 7). - Qualcomm also has stable multi-year agreements with major customers such as Samsung and Apple (Page 6, 9). - The company is flexible and working on bespoke solutions configured from their IP portfolio for different hyperscaler needs (Page 11). No specific numeric orderbook or total pending orders data is disclosed in the provided transcript.

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Frequently Asked Questions

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QUALCOMM Incorporated currently shows a moderate growth signal based on ranking data. The stock trades at a P/E of 26.7 with a market cap of $256,428. Investors should review the full earnings analysis for detailed insights.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.