QUALCOMM INC/DE Earnings Summary — Q2 2026

• Revenue declined 3.46% year-over-year to $10.6 billion, reflecting a broader slowdown in the global handset market.
• Net income saw a significant jump of 162% YoY, primarily driven by a massive negative tax provision of -$5.1 billion, rather than organic growth.
• Operating income fell to $2.31 billion from $3.12 billion in the same quarter last year, indicating margin compression.
• R&D spending remained high at $2.46 billion (up from $2.22B YoY), emphasizing the company's commitment to AI-PC and Automotive tech.
• Total operating expenses rose to $3.39 billion, driven by increased R&D and SG&A costs despite falling revenues.
• Shares outstanding decreased from 1,104M to 1,066M YoY, signaling continued aggressive share repurchases.
• Interest income declined substantially QoQ from $350M to $94M, impacting non-operating performance.

Management continues to emphasize a pivot toward 'Growth and Diversification,' targeting leadership in On-Device AI and high-growth automotive semiconductors to offset smartphone cyclicality.

Stable

While bottom-line figures were inflated by tax adjustments, the company maintains dominant 5G positioning despite slight revenue softness.

The outlook remains tied to the success of AI-PCs and the ability to maintain content gains in the 5G handset market while diversifying revenue toward the Automotive and IoT segments.