QUALCOMM Files Fiscal Q2 2026 Form 10-Q: $5.7 Billion Tax Benefit Drives Record Net Income as Handset Revenues Decline and Automotive Growth Accelerates
QUALCOMM's second-quarter fiscal 2026 10-Q discloses a $5.7 billion valuation-allowance release on federal deferred tax assets, producing net income of $7.4 billion on total revenues of $10.6 billion, while the QCT semiconductor segment faces headwinds from memory-driven handset weakness offset by strong automotive and IoT performance.
Sourced from the primary SEC filing. 10-Q filed April 29, 2026 · SEC EDGAR ↗
Summary
QUALCOMM Incorporated's Form 10-Q for the fiscal quarter ended March 29, 2026 reports total revenues of $10.6 billion, down 3% year-over-year, yet net income surged to $7.4 billion — a 162% increase — almost entirely because of a non-cash, one-time $5.7 billion income tax benefit resulting from the release of a valuation allowance on federal deferred tax assets. Beneath that headline figure, the company's core semiconductor segment (QCT) saw handset revenues fall $905 million year-over-year as certain OEMs reduced chipset orders amid memory supply constraints, while automotive revenues grew 38% and IoT revenues rose 9% in the same period. Management also disclosed a new $20 billion stock repurchase authorization, the completed acquisition of wired-connectivity firm Alphawave for $2.3 billion, and several forward-looking risk factors including anticipated Apple modem in-sourcing and ongoing U.S.-China trade policy uncertainty.
Key metrics
Three months ended March 29, 2026 vs. March 30, 2025; decrease driven primarily by lower QCT handset revenues and absence of a prior-year licensing settlement.
Six months ended March 29, 2026 vs. March 30, 2025.
Three months ended March 29, 2026.
Six months ended March 29, 2026.
Three months ended March 29, 2026.
Six months ended March 29, 2026.
Decreased from 55% in the year-ago quarter, primarily due to a decrease in QCT gross margin percentage.
Decreased from 55% in the prior-year six-month period.
23% of revenues; increased $247 million year-over-year, driven by higher employee-related costs and share-based compensation.
22% of revenues; increased $469 million year-over-year.
8% of revenues; increased $192 million year-over-year, driven by higher share-based compensation and acquisition-related expenses.
8% of revenues; increased $333 million year-over-year.
Three months ended March 29, 2026.
Six months ended March 29, 2026.
Includes a $5.7 billion income tax benefit from the release of a valuation allowance on federal deferred tax assets.
Six months ended March 29, 2026; includes the $5.7 billion tax benefit recorded in Q2 FY2026.
Three months ended March 29, 2026; reflects the $5.7 billion income tax benefit.
Six months ended March 29, 2026.
Three months ended March 29, 2026.
Six months ended March 29, 2026.
230% benefit, primarily due to release of $5.7 billion valuation allowance on federal deferred tax assets following IRS Notice 2026-07 on CAMT.
Management estimates a 40% benefit rate for fiscal 2026, primarily driven by the valuation allowance release.
Benefit of $5.7 billion from valuation allowance release partially offset by other tax items.
Decrease primarily due to lower chipset shipments driven by customers reducing inventory amid memory supply constraints.
Six months ended March 29, 2026.
Increase driven by higher shipments from new vehicle launches and favorable mix/higher average selling prices.
Six months ended March 29, 2026.
Increase primarily driven by higher revenues per unit from favorable mix.
Six months ended March 29, 2026.
Three months ended March 29, 2026; lower handset revenues partially offset by higher automotive and IoT revenues.
Six months ended March 29, 2026.
Earnings before income taxes for the QCT segment.
Six months ended March 29, 2026.
Decreased 3 percentage points year-over-year, driven by higher operating expenses and lower gross margin.
Decreased 2 percentage points year-over-year.
Increase primarily due to higher estimated revenues per unit driven by favorable mix.
Six months ended March 29, 2026.
Three months ended March 29, 2026.
Six months ended March 29, 2026.
Increased 2 percentage points year-over-year due to higher revenues.
Increased 2 percentage points year-over-year.
Decreased $40 million year-over-year, primarily due to net losses from changes in fair value of marketable equity investments.
Six months ended March 29, 2026; increase driven by net gains on non-marketable equity investments and higher equity method earnings.
Six months ended March 29, 2026.
Six months ended March 29, 2026.
Six months ended March 29, 2026.
Six months ended March 29, 2026.
Six months ended March 29, 2026.
Includes repurchases that offset share issuances in connection with the Alphawave acquisition; 34 million shares repurchased.
Balance sheet date.
All classified as current; primarily available-for-sale debt securities.
Balance sheet date.
Increased from $11,358 million at September 28, 2025, primarily due to the Alphawave acquisition.
Includes $14,772 million long-term debt and $498 million short-term commercial paper.
Balance sheet date.
Increased from $6,526 million at September 28, 2025, reflecting demand impacts from memory supply constraints.
Six months ended March 29, 2026; includes replacement of annual cash incentive awards with a two-year equity award for broader non-executive leadership.
Three months ended March 29, 2026.
As of March 29, 2026; 34 million shares repurchased in the first six months of fiscal 2026.
Quarterly dividend per share for the quarter ended March 29, 2026. A subsequent increase to $0.92 per share was announced on March 17, 2026, effective for dividends payable after March 26, 2026.
Includes $20.0 billion new program announced March 17, 2026 plus $1.9 billion remaining from the prior program.
Three months ended March 29, 2026.
Six months ended March 29, 2026.
Six months ended March 29, 2026.
Closed December 18, 2025; primarily comprised of $1.8 billion equity consideration (11 million shares) and $301 million cash.
Allocated to the Data Center operating segment; not deductible for tax purposes.
Percentage of total revenues from the largest identified customer/licensee.
Percentage of total revenues from the second largest identified customer/licensee.
Released following IRS Notice 2026-07, which clarified that CAMT liability can be reduced by previously capitalized domestic R&D expenditures.
Increased from $2.7 billion at September 28, 2025.
Designated as fair value hedges converting fixed-rate to floating-rate payments on a portion of long-term debt.
Recorded as short-term debt; program capacity is $4.5 billion.
Keep reading with a membership
You’ve read the impersonal summary and the extracted KPIs for “QUALCOMM Files Fiscal Q2 2026 Form 10-Q: $5.7 Billion Tax Benefit Drives Record Net Income as Handset Revenues Decline and Automotive Growth Accelerates”. The complete analysis — segment walk-throughs, filing-by-filing reasoning, and the data tables — is reserved for members.
- Every published deep-dive, unlocked in full
- Structured KPI snapshots straight from the filings
- Same impersonal, educational framing — no advice, ever