Qualcomm reported a net income of $3bn for the first quarter of fiscal 2026 (Q1 FY26), a 6% decrease from the $3.18bn recorded in the same period of the previous year.

Despite the decline in net income, the US-based semiconductor company achieved revenues of $12.3bn for the reported quarter, ending 28 December 2025. This marks a 5% increase from the $11.7bn reported in Q1 fiscal 2025.

The earnings per share (EPS) for Q1 FY26 were $2.78 on a GAAP basis, slightly down from $2.83 in the previous year, while the non-GAAP EPS rose by 3% to $3.50 from $3.41.

The Qualcomm CDMA Technologies (QCT) segment, a significant contributor to the company’s revenue, reported a 5% increase, reaching $10.6bn. This growth was driven by a 3% increase in handset sales, which totalled $7.8bn, and a substantial 15% rise in the automotive sector, which generated $1.1bn.

The Internet of Things (IoT) division also saw a 9% increase in revenue, contributing $1.7bn to the total.

In the Qualcomm Technology Licensing (QTL) segment, revenues increased by 4% to $1.6bn, with earnings before taxes rising by 6% to $1.2bn.

Qualcomm said that it returned $3.6bn to shareholders in the first quarter, which included $949 million in cash dividends and $2.6bn through the repurchase of 15 million shares of common stock.

For the second quarter of fiscal 2026, Qualcomm anticipates challenges such as memory supply constraints that could affect demand from several handset customers. The company’s revenue guidance for Q2 is estimated between $10.2bn and $11.0bn, with QCT revenues projected between $8.8bn and $9.4bn, and QTL revenues between $1.2bn and $1.4bn.

During the reported quarter, Qualcomm completed the previously announced $2.4bn acquisition of Alphawave Semi, a move aimed at expanding its presence in the data centre market. This acquisition aligns with Qualcomm’s broader strategy to diversify its business operations.

Additionally, Qualcomm acquired Ventana Micro Systems to reinforce its position in the RISC-V standard and ecosystem. The acquisition aims to bolster Qualcomm’s efforts in the RISC-V standard and ecosystem, while also enhancing its CPU capabilities through Ventana’s expertise in RISC-V ISA development.

Qualcomm said that it continued to focus on innovation during the first quarter, particularly in AI and digital transformation. The period saw Bytedance launch the first agentic AI smartphone powered by the Snapdragon 8 Elite platform.

At the Consumer Electronics Show (CES) held last month in Las Vegas, Qualcomm presented 18 Snapdragon-powered PCs in collaboration with partners including Asus, HP, Lenovo, and Microsoft. The Asus Zenbook A16, equipped with the Snapdragon X2 Elite Extreme platform, was identified as the fastest among the Snapdragon-powered laptops.

Furthermore, the company announced its expansion into advanced robotics, introducing a suite of robotics technologies and solutions, including the Qualcomm Dragonwing IQ10 Series.

Qualcomm also started the year 2026 by signing a Letter of Intent for a long-term supply agreement with Volkswagen Group and expanded collaborations with several automotive companies.

Qualcomm President and CEO Cristiano Amon said: “We are pleased to deliver strong quarterly results, with record total company revenues.

“Our momentum across personal, industrial and physical AI is growing, as evidenced by recent product announcements at CES and customer traction.

“While our near-term handsets outlook is impacted by industry-wide memory supply constraints, we are encouraged by end-consumer demand for premium and high tier smartphones, and remain on track to achieve our fiscal 2029 revenue goals.”