Qualcomm posted record revenue in the first quarter of fiscal 2026, reporting $12.3 billion, up 5% year-on-year, as growth in automotive, IoT, and emerging data center initiatives offset near-term headwinds in handsets. GAAP diluted EPS came in at $2.78, while non-GAAP diluted EPS reached $3.50. Qualcomm Technologies (QCT) delivered record quarterly revenue of $10.6 billion, driven by continued expansion beyond smartphones.
Automotive revenue reached a record $1.1 billion, rising 15% year-on-year and marking the second consecutive quarter above the $1 billion threshold. IoT revenue grew 9% to $1.7 billion, supported by demand across consumer and networking products. Handset revenue increased 3% to $7.8 billion, though Qualcomm flagged industry-wide memory supply constraints tied to AI data center demand as a near-term drag on handset build plans, particularly among OEMs in China.
During the quarter, Qualcomm completed its acquisition of Alphawave Semi, adding high-speed wired connectivity IP to accelerate its expansion into data center platforms. The company returned $3.6 billion to shareholders through dividends and share repurchases, and guided second-quarter fiscal 2026 revenue to a range of $10.2 billion to $11.0 billion, reflecting the anticipated impact of memory supply dynamics on handset demand.
Key points
- Q1 FY2026 revenue: $12.3 billion (+5% YoY); non-GAAP EPS: $3.50
- QCT revenue: $10.6 billion (+5% YoY); QTL revenue: $1.6 billion (+4% YoY)
- Automotive revenue: $1.1 billion (+15% YoY), second straight quarter above $1 billion
- IoT revenue: $1.7 billion (+9% YoY), driven by consumer and networking demand
- Alphawave Semi acquisition completed, strengthening data center connectivity portfolio
“Our momentum across personal, industrial and physical AI continues to build, supported by strong customer traction and diversification beyond handsets,” said Cristiano Amon, President and CEO of Qualcomm. “While memory supply constraints are affecting near-term handset demand, we remain encouraged by premium smartphone trends and confident in our long-term growth trajectory.”
🌐 Analysis
Qualcomm’s results underscore a steady shift toward automotive, industrial IoT, and data center-adjacent silicon as the company reduces its historical dependence on smartphones. The Alphawave Semi acquisition aligns Qualcomm more closely with hyperscaler and enterprise infrastructure requirements, positioning it alongside competitors expanding into high-speed interconnect and custom compute for AI-driven data centers.
