FOR IMMEDIATE RELEASE

Transcript

1. #1prepared remarks

   EX-99.1 2 qcom062826erex991.htm EX-99.1

2. #2prepared remarks

   Exhibit 99.1 FOR IMMEDIATE RELEASE Qualcomm Contact: Brett Simpson Senior Vice President, Investor Relations Phone: 1-858-658-4813 | e-mail: ir@qualcomm.com

3. #3Cristiano Amon · President and CEO of Qualcomm Incorporated

   Despite a challenging memory and supply environment, our third quarter results reflect solid execution of our growth strategy, with quarterly revenues at the high end of guidance,

4. #4prepared remarks

   | GAAP | | Non-GAAP | | (in millions, except per share data and percentages) | Q3 Fiscal 2026 | | Q3 Fiscal 2025 | | Change | | Q3 Fiscal 2026 | | Q3 Fiscal 2025 | | | | | Change | | Revenues | $9,947 | | $10,365 | | (4%) | | $9,947 | | $10,365 | | | | | (4%) | | Earnings before taxes (EBT) | $2,462 | | $2,952 | | (17%) | | $2,693 | | $3,544 | | | | | (24%) | | Net income | $2,002 | | $2,666 | | (25%) | | $2,356 | | $3,040 | | | | | (23%) | | Diluted earnings per share (EPS) | $1.87 | | $2.43 | | (23%) | | $2.21 | | $2.77 | | | | | (20%) | |

5. #5and

   Note Regarding Use of Non-GAAP Financial Measures

6. #6prepared remarks

   Segment Results | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | QCT | | QTL | (in millions, except percentages) | Q3 Fiscal 2026 | | Q3 Fiscal 2025 | | Change | | Q3 Fiscal 2026 | | Q3 Fiscal 2025 | | Change | | | | | | | | | | | | | | | | | | | Revenues | $8,504 | | $8,993 | | (5%) | | $1,278 | | $1,318 | | (3%) | | | | EBT | $2,192 | | $2,671 | | (18%) | | $881 | | $942 | | (6%) | | | | EBT as % of revenues | 26% | | 30% | | -4 points | | 69% | | 71% | | -2 points | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

7. #7prepared remarks

   | | | | | | Qualcomm Announces Third Quarter Fiscal 2026 Results | Page 2 of 8 |

8. #8prepared remarks

   QCT Revenue Streams 1 | | | | | | | | | | | | | | | | | | (in millions, except percentages) | Q3 Fiscal 2026 | | Q3 Fiscal 2025 | | Change | | | | | | | Handsets | $5,086 | | $6,328 | | (20%) | Automotive | 1,588 | | 984 | | +61% | IoT (internet of things) | 1,830 | | 1,681 | | +9% | | | | | | | | | | | | | Total QCT revenues | $8,504 | | $8,993 | | (5%) |

9. #9prepared remarks

   (1) We disaggregate QCT revenues based on the industries and applications in which our products are sold.

10. #10prepared remarks

    Return of Capital to Stockholders During the third quarter of fiscal 2026, we returned $2.3 billion to stockholders, including $973 million, or $0.92 per share, of cash dividends paid and $1.4 billion through repurchases of 8 million shares of common stock.

11. #11in this news release

    Note Regarding Forward-Looking Statements

12. #12prepared remarks

    (1) Our outlook does not include provisions for proposed tax law changes, future asset impairments or for pending legal matters, other than future legal amounts that are probable and estimable. Further, due to their nature, certain income and expense items, such as certain investments, derivative and foreign currency transaction gains or losses, cannot be accurately forecast. Accordingly, we only include such items in our financial outlook to the extent they are reasonably certain. Our outlook includes the impact of any pending business combinations to the extent they are expected to close in the upcoming quarter. Actual results may differ materially from the outlook. (2) Our guidance for diluted EPS attributable to other items for the fourth quarter of fiscal 2026 is primarily related to acquisition-related items.

13. #13prepared remarks

    | | | | | | Qualcomm Announces Third Quarter Fiscal 2026 Results | Page 3 of 8 |

14. #14as defined in Regulation

    Non-GAAP financial measures

15. #15prepared remarks

    Our Investor Relations website at https://investor.qualcomm.com contains a significant amount of information about us, including financial and other information for investors, and it is possible that this information could be deemed to be material information. Accordingly, investors and others interested in Qualcomm should review the information posted on our website in addition to following our press releases, SEC filings and public conference calls and webcasts.

16. #16prepared remarks

    About Qualcomm Qualcomm is a global computing leader at the center of the AI era, enabling intelligence to scale from the most personal devices to large‑scale infrastructure. Building on more than four decades of innovation, we develop platforms and solutions that bring together advanced AI, high‑performance, low-power computing and industry‑leading connectivity—powering products and services used around the world. At Qualcomm, we are engineering human progress.

17. #17prepared remarks

    Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of our engineering and research and development functions and substantially all of our products and services businesses, including our QCT semiconductor business. Snapdragon and Qualcomm branded products are products of Qualcomm Technologies, Inc. and/or its subsidiaries. Qualcomm patents are licensed by Qualcomm Incorporated. Qualcomm, Snapdragon, Qualcomm Dragonwing and Qualcomm Dragonfly are trademarks or registered trademarks of Qualcomm Incorporated.

18. #18prepared remarks

    Note Regarding Forward-Looking Statements In addition to the historical information contained herein, this news release contains forward-looking statements that are inherently subject to risks and uncertainties, including but not limited to statements regarding: our growth strategy; our Investor Day vision; our fiscal 2027 and fiscal 2029 targets and expectations for non-handset revenues and revenue growth; our acquisition of Modular Inc, including the expected benefits of such acquisition; the impact of industry-wide increases in input costs, including actions we are taking in response thereto, the expected impact on our gross margins and the timing thereof; and our estimates and guidance related to revenues and earnings per share (EPS). Forward-looking statements are generally identified by words such as “estimate,” “forecast,” “guidance,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek” and similar expressions. Actual results may differ materially from those referred to in the forward-looking statements due to a number of important factors, including but not limited to: our dependence on a small number of customers and licensees, and particularly from their sale of …

19. #19prepared remarks

    | | | | | | Qualcomm Announces Third Quarter Fiscal 2026 Results | Page 4 of 8 |

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    QUALCOMM Incorporated CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except par value amounts) (Unaudited) | | | | | | | | | | | | | June 28, 2026 | | September 28, 2025 | ASSETS | Current assets: | | | | Cash and cash equivalents | $ | 4,533 | | | $ | 5,520 | | Restricted cash | — | | | 2,323 | | Marketable securities | 3,771 | | | 4,635 | | Accounts receivable, net | 4,668 | | | 4,315 | | Inventories | 8,379 | | | 6,526 | | Other current assets | 1,653 | | | 2,435 | | Total current assets | 23,004 | | | 25,754 | | | | | | Deferred tax assets | 5,679 | | | 743 | | Property, plant and equipment, net | 5,217 | | | 4,690 | | Goodwill | 14,274 | | | 11,358 | | Other intangible assets, net | 1,510 | | | 1,148 | | Other assets | 7,683 | | | 6,450 | | Total assets | $ | 57,367 | | | $ | 50,143 | | | | | | LIABILITIES AND STOCKHOLDERS’ EQUITY | Current liabilities: | | | | Trade accounts payable | $ | 2,897 | | | $ | 2,791 | | Payroll and other benefits related liabilities | 1,470 | | | 1,839 | | Unearned revenues | 280 | | | 358 | | Short-term debt | 2,489 | | | — | | Other current liabilities | 4,277 | | | 4,156 | | Total current liabilities | 11,413…

21. #21prepared remarks

    | | | | | | Qualcomm Announces Third Quarter Fiscal 2026 Results | Page 5 of 8 |

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    QUALCOMM Incorporated CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited)

23. #23prepared remarks

    | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | | | | | June 28, 2026 | | June 29, 2025 | | June 28, 2026 | | June 29, 2025 | Revenues: | | | | | | | | | | | | | Equipment and services | | | | | | $ | 8,475 | | | $ | 8,893 | | | $ | 28,002 | | | $ | 28,193 | | Licensing | | | | | | 1,472 | | | 1,472 | | | 4,796 | | | 4,820 | | Total revenues | | | | | | 9,947 | | | 10,365 | | | 32,798 | | | 33,013 | | | | | | | | | | | | | | | Costs and expenses: | | | | | | | | | | | | | Cost of revenues | | | | | | 4,670 | | | 4,606 | | | 15,138 | | | 14,704 | | Research and development | | | | | | 2,607 | | | 2,226 | | | 7,523 | | | 6,672 | | Selling, general and administrative | | | | | | 976 | | | 771 | | | 2,738 | | | 2,200 | | Other | | | | | | 68 | | | — | | | 97 | | | — | | Total costs and expenses | | | | | | 8,321 | | | 7,603 | | | 25,496 | | | 23,576 | | | | | | | | | | | | | | | Operating income | | | | | | 1,626 | | | 2,762 | | | 7,302 | | | 9,437 | | Interest expense | | | | | | (178) | | | (168) | | | (519) | | | (493) | | Investment and other income, net | | | | | | 1,014 | | | 358 | | | 1,458 | | | 74…

24. #24prepared remarks

    | | | | | | Qualcomm Announces Third Quarter Fiscal 2026 Results | Page 6 of 8 |

25. #25prepared remarks

    QUALCOMM Incorporated CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) | | | | | | | | | | | | | | | | | | | Nine Months Ended | | | | | | | | June 28, 2026 | | June 29, 2025 | | | | | | | Operating Activities: | | | | | | | | | | Net income | $ | 12,377 | | | $ | 8,658 | | | | | | | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | Depreciation and amortization expense | 1,202 | | | 1,231 | | | | | | | | | | | | | | | | | | Income tax payments in excess of income tax provision | (5,550) | | | (1,535) | | | | | | | | Share-based compensation expense | 2,579 | | | 2,120 | | | | | | | | Net gains on marketable securities and other investments | (933) | | | (297) | | | | | | | | | | | | | | | | | | Impairment losses on other investments | 61 | | | 93 | | | | | | | | Equity in net earnings of investees | (149) | | | (13) | | | | | | | | Other items | (52) | | | (10) | | | | | | | | Changes in assets and liabilities: | | | | | | | | | | Accounts receivable, net | (264) | | | 535 | | | | | | | | Inventories | (1,798) | | | 33 | | | | | | | | Other assets | 777 | | | 361 | | | | | | | …

26. #26prepared remarks

    | | | | | | Qualcomm Announces Third Quarter Fiscal 2026 Results | Page 7 of 8 |

27. #27prepared remarks

    Note Regarding Use of Non-GAAP Financial Measures The Non-GAAP financial measures presented herein should be considered in addition to, not as a substitute for or superior to, financial measures calculated in accordance with GAAP. In addition, “Non-GAAP” is not a term defined by GAAP, and as a result, our Non-GAAP financial measures might be different than similarly titled measures used by other companies. Reconciliations between GAAP and Non-GAAP financial measures are presented herein. We use Non-GAAP financial information: (i) to evaluate, assess and benchmark our operating results on a consistent and comparable basis; (ii) to measure the performance and efficiency of our ongoing core operating businesses, including our QCT (Qualcomm CDMA Technologies) and QTL (Qualcomm Technology Licensing) segments; and (iii) to compare the performance and efficiency of these segments against competitors. Non-GAAP measurements used by us include revenues, cost of revenues, research and development (R&D) expenses, selling, general and administrative (SG&A) expenses, other income or expenses, operating income, interest expense, net investment and other income, income or earnings before income…

28. #28prepared remarks

    | | | | | | Qualcomm Announces Third Quarter Fiscal 2026 Results | Page 8 of 8 |

29. #29prepared remarks

    Reconciliations of GAAP Results to Non-GAAP Results | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | GAAP to Non-GAAP Reconciliation | | (in millions, except per share data and percentages) | | | | GAAP Results | Less QSI | Less Share-Based Compensation | Less Other Items 1 | Non-GAAP Results | | | | Q3 Fiscal 2026 | | | | | | | | | | | | Revenues | | | | | $9,947 | | | $— | | | $— | | | | $— | | | | $9,947 | | | | | | | | Operating income (loss) | | | | | 1,626 | | | (3) | | | (827) | | | (320) | | | 2,776 | | | | | | | | EBT | | | | | 2,462 | | | 768 | | | (827) | | | (172) | | | 2,693 | | | | | | | | EBT as % of revenues | | | | | 25 | % | | | | | | | | | | | | 27 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net income (loss) | | | | | 2,002 | | | 607 | | | (728) | | | (233) | | | 2,356 | | | | | | | | Diluted EPS | | | | | $1.87 | | | $0.57 | | | ($0.68) | | | ($0.22) | | | $2.21 | | | | | | | | Diluted shares | | | | | 1,069 | | | 1,069 | | | 1,069 | | | 1,069 | | | 1,069 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | …

30. #30Details of amounts included

    Supplemental Information and Reconciliations.