Qualcomm: Revenues Record High, Performance Outlook Falls Short of Expectations Due to Memory Shortage

Qualcomm announced its financial results for the first quarter of fiscal year 2026 (ended December 28, 2025). The company reported revenues of $12.25 billion, with a year-on-year increase of 5%. Non-GAAP net income was $3.78 billion, with a year-on-year decrease of 1%. Non-GAAP diluted earnings per share is $3.50.  Revenues of QCT grew 5% year-on-year to $10.61 billion. Within this segment, revenue of handsets increased 3% to $7.82 billion, revenue of automotive rose 15% to $1.1 billion, and revenue of IoT grew 9% to $1.69 billion. Meanwhile, revenue of QTL reached $1.59 billion, up 4% year-on-year.  For the second fiscal quarter, Qualcomm expects its revenues to be between $10.2 billion and $11 billion, falling short of analysts' average estimates. The company attributed this to supply shortage and rising prices of memory chips, which are expected to lead to lower-than-anticipated mobile phone production for some customers. Even though the demand for high-end phones remains strong and the company is advancing its diversification strategy by increasing chip sales for automotive, PC, and data center applications, the scale of these new businesses still cannot be sufficient to offset the slowdown in the handsets chip market yet.