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Technology · NASDAQ: QCOM

Qualcomm: how the business works

Qualcomm designs chips for phones, cars and connected devices and licenses its patents to device makers, with revenue of $43.1 billion in FY2026.

By · Checked against filings: . Editorial policy. Corrections

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QUALCOMM Incorporated · San Diego, California · Founded 1985

Updated for Q4 FY2026 · checked

Revenue, FY2026
$43.1B
Operating income, FY2026
$8.7B
Net income, FY2026 (incl. one-off tax benefit)
$13.6B
Employees, FY2026
About 57,000
Incorporated
1985

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

The short version

Qualcomm in 5 points

  1. 1 · What it sells

    Qualcomm designs chips for phones, cars and connected devices and licenses its patents to device makers, with revenue of $43.1 billion in FY2026.

    More: what it sells

  2. 2 · Who pays it

    In FY2026, phone makers paid 55.8% of Qualcomm's revenue for chips, IoT device makers 16.5%, automotive customers 13.9%, patent licensees 12.9% and smaller units 1.1%.

    More: who pays it

  3. 3 · What it keeps from $100

    Of every $100 that came in during FY2026, Qualcomm kept $30.6 as net income, lifted by a one-off $5.7 billion tax benefit, while operating income was $20.1 per $100 of revenue.

    More: what it keeps from $100

  4. 4 · Where the operating profit comes from

    In FY2026 the chip segment, QCT, earned $10.1 billion before tax at a 27% margin and licensing, QTL, $4.0 billion at 72%, before $2.8 billion of research and $1.2 billion of admin costs kept outside the segments.

    More: where the operating profit comes from

  5. 5 · The one thing to watch

    Qualcomm reiterated on Nov 4, 2026 a $5 billion Data Center revenue target for FY2027, against $476 million of FY2026 revenue from the smaller units that include Data Center.

    More: the one thing to watch

Sources: From Qualcomm's FY2026 10-K and Q4 FY2026 earnings release · checked

See the full receipt and the management scorecard below

Sources (2)
Next: Where $100 goes

01Where the money goes · FY2026

Where does $100 of Qualcomm's money go?

Of every $100 that came in (revenue plus other income), this is where it went.

Qualcomm · FY2026

Receipt for every $100

Where $100 of Qualcomm's money went in FY2026
Cost of revenues$45.4
Research and development$22.9
Selling, general and admin$8.3
Restructuring and other$0.7
Interest$1.5
Income tax benefit, one-off (adds)−$9.5
Kept as net income$30.6
Total$100

Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.

How this is worked out

Cityfort calculation from FY2026 10-K. Of every $100 that came in during FY2026 (revenue $43,120 million + investment and other income $1,445 million = $44,565 million): each line = line ÷ $44,565 million × 100. The tax line is negative because a one-off $5.7 billion release made tax a benefit. Operating income was $20.1 per $100 of revenue.

Sources (1)
Next: The business in one line

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02The business in one line

What does Qualcomm do?

Phone makers, carmakers and other device makers pay Qualcomm for chips and for licenses to its patents; most of the money goes to making the chips and to research, and what is left is profit.

  • In FY2026, phone chips brought in 55.8% of revenue, IoT chips 16.5%, car chips 13.9% and patent licensing 12.9%.
  • Operating income was 20.1% of FY2026 revenue. Net income was 31.6%, lifted by a one-off $5.7 billion tax benefit.
Next: Who pays it

03Who pays it

Who pays Qualcomm?

  • Phone makers (handset chips)

    56%

    of revenue

    Apple and Samsung were each 10% or more of FY2026 revenue. Qualcomm expects Apple to primarily use its own modems going forward.

  • IoT device makers

    17%

    of revenue

    Makers of computers, AI devices and industrial, networking and robotics equipment. IoT revenue rose 8% in FY2026.

  • Automotive customers

    14%

    of revenue

    Buyers of Qualcomm's car chips. Automotive revenue reached $2.0 billion in Q4 FY2026 alone, up 89% from a year earlier.

  • Patent licensees (QTL)

    13%

    of revenue

    Device makers that pay royalties. Qualcomm renewed long-term license agreements with Apple, Huawei and Transsion in FY2026, without disclosing terms.

  • Data Center, government and other units

    1%

    of revenue

    Customers of units Qualcomm reports together as nonreportable segments, including Data Center chips.

  • Phone makers (handset chips)56%
  • IoT device makers17%
  • Automotive customers14%
  • Patent licensees (QTL)13%
  • Data Center, government and other units1%

Customer concentration

Two customers were 22% and 20% of FY2026 revenue. Qualcomm names Apple and Samsung as its 10%-plus customers but does not say which is which. Shares above are each line's revenue ÷ total revenue of $43,120 million (Cityfort calculation from FY2026 10-K); a $120 million settlement payment to a customer reduced the total.

Largest customer
22%
Sources (2)
Next: Why it makes money

04Why it makes money

Why does Qualcomm make money?

Qualcomm's research feeds two businesses: chips that bring in most of the money, and licenses that keep most of theirs.

In FY2026 licensing kept 72% of its revenue as earnings before tax, against 27% for chips. Chips brought in $37.2 billion, licensing $5.6 billion. Research cost $23.7 of every $100 of revenue.

Gross margin per $100 of revenue

$57.8$53.1

FY2022 to FY2026

  1. Qualcomm spends on research ($10.2 billion in FY2026)
  2. Research becomes chip designs and patents
  3. Device makers buy the chips (QCT)
  4. Device makers pay royalties on the patents (QTL)
  5. Profits pay for the next round of research

↺ Step 5 feeds back into step 1.

Sources (2)
Next: Business segments

05Business segments · FY2026

Which businesses make up Qualcomm?

  • QCT (chips)

    86%

    Chips for phones ($24.1 billion), IoT ($7.1 billion) and cars ($6.0 billion). It earned $10.1 billion before tax, a 27% margin. Segment earnings leave out $2.8 billion of research and $1.2 billion of admin costs that Qualcomm keeps unallocated.

    Revenue $37.2B · Operating profit $10.1B

  • QTL (licensing)

    13%

    Patent royalties. It earned $4.0 billion before tax, a 72% margin. This differs from the $6.2 billion of licensing revenue in the income statement, because QCT also books some licensing-type revenue.

    Revenue $5.6B · Operating profit $4.0B

  • Other units

    1%

    Data Center, government work and Modular, which lost $607 million before tax as Data Center was built out. The QSI investment unit had no revenue in FY2026 and earned $794 million before tax; its small revenue up to FY2024 is counted here.

    Revenue $476M · Operating profit −$607M

How the mix changed

  • QCT (chips)
  • QTL (licensing)
  • Other units

Revenue by segment, FY2022 to FY2026.

US$

See the numbers
How the mix changed (US$)
YearQCT (chips)QTL (licensing)Other units
FY2022$37.7B$6.4B$165M
FY2023$30.4B$5.3B$172M
FY2024$33.2B$5.6B$194M
FY2025$38.4B$5.6B$192M
FY2026$37.2B$5.6B$476M
Sources (2)
Next: How has it done

06The numbers · Consolidated · US$

How has Qualcomm done?

Revenue

$43.1BFY2026

Revenue fell 19.0% to $35.8 billion in FY2023, rose to $44.3 billion in FY2025, and slipped 2.6% to $43.1 billion in FY2026 as phone-chip sales fell 13%.

US$

See the numbers
Revenue (US$)
PeriodRevenue (US$)
FY2022$44.2B
FY2023$35.8B
FY2024$39.0B
FY2025$44.3B
FY2026$43.1B
Q1 FY2025$11.7B
Q2 FY2025$11.0B
Q3 FY2025$10.4B
Q4 FY2025$11.3B
Q1 FY2026$12.3B
Q2 FY2026$10.6B
Q3 FY2026$9.9B
Q4 FY2026$10.3B

Net profit

$13.6BFY2026

Net income rose to $13.6 billion in FY2026 from $5.5 billion as a $5.7 billion FY2025 tax charge reversed, while operating income fell to $8.7 billion from $12.4 billion.

US$

See the numbers
Net profit (US$)
PeriodNet profit (US$)EPS ($)
FY2022$12.9B$11.37
FY2023$7.2B$6.42
FY2024$10.1B$8.97
FY2025$5.5B$5.01
FY2026$13.6B$12.70
Q1 FY2025$3.2B$2.83
Q2 FY2025$2.8B$2.52
Q3 FY2025$2.7B$2.43
Q4 FY2025−$3.1B−$2.89
Q1 FY2026$3.0B$2.78
Q2 FY2026$7.4B$6.88
Q3 FY2026$2.0B$1.87
Q4 FY2026$1.3B$1.17

Profit kept per $100 of revenue

$31.6FY2026

Operating income was 20.1% of revenue in FY2026, after 27.9% in FY2025 and 35.9% in FY2022, while net income was 31.6% with the one-off tax benefit.

$ of profit per $100 of revenue (net margin)

See the numbers
Profit kept per $100 of revenue ($ of profit per $100 of revenue (net margin))
YearNet marginEBITDA margin
FY202229.3%39.9%
FY202320.2%26.8%
FY202426.0%30.2%
FY202512.5%31.5%
FY202631.6%23.9%

Free cash flow

$8.7BFY2026

Free cash flow fell to $8.7 billion in FY2026 from $12.8 billion, as capital spending doubled to $2.5 billion and Qualcomm built inventory "to secure supply".

US$ · cash from operations minus spending on plants and equipment

See the numbers
Free cash flow (US$ · cash from operations minus spending on plants and equipment)
YearCash from operationsCapital spendingFree cash flow
FY2022$9.1B$2.3B$6.8B
FY2023$11.3B$1.5B$9.8B
FY2024$12.2B$1.0B$11.2B
FY2025$14.0B$1.2B$12.8B
FY2026$11.1B$2.5B$8.7B
See all yearly numbers
Qualcomm annual financials, FY2022–FY2026, US$
YearRevenueEBITDANet profitEPS ($)Operating cashCapexFree cash
FY2022$44.2B$17.6B$12.9B$11.37$9.1B$2.3B$6.8B
FY2023$35.8B$9.6B$7.2B$6.42$11.3B$1.5B$9.8B
FY2024$39.0B$11.8B$10.1B$8.97$12.2B$1.0B$11.2B
FY2025$44.3B$14.0B$5.5B$5.01$14.0B$1.2B$12.8B
FY2026$43.1B$10.3B$13.6B$12.70$11.1B$2.5B$8.7B

EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (Last Sunday of September (FY2026 ended Sep 27, 2026; FY2025 and FY2026 had 52 weeks, FY2024 had 53)). Net profit is the share belonging to the company's owners.

Download Qualcomm's yearly and quarterly numbers (CSV, with source ids)

Learn: Fiscal years that don't end in December: Nvidia's FY2027 explained · Stock-based compensation and dilution: pay that becomes shares

Sources (10)
Next: What they said, and what happened

07Who runs it

Who runs Qualcomm, and did they deliver?

  • Cristiano R. Amon

    President and Chief Executive Officer · since 2021

    CEO and a director since June 2021. FY2025 total pay was $29,701,097, of which $24,162,043 was stock awards; that was 292 times the median employee's $101,639.

  • Akash Palkhiwala

    Chief Financial Officer and Chief Operating Officer · since 2019

    CFO since November 2019 and also COO since January 2024.

  • Mark D. McLaughlin

    Independent Chair of the Board

    A director since 2015. All directors except the CEO are independent.

What they said, and what happened

5 delivered · 2 too early to tell

  1. Said on Jul 30, 2025

    Qualcomm guided Q4 FY2025 revenue of $10.3 billion to $11.1 billion.

    What happened

    Reported revenue of $11.27 billion, above the range.

    Delivered

  2. Said on Nov 5, 2025

    Qualcomm guided Q1 FY2026 revenue of $11.8 billion to $12.6 billion.

    What happened

    Reported revenue of $12.25 billion, inside the range.

    Delivered

  3. Said on Feb 4, 2026

    Qualcomm guided Q2 FY2026 revenue of $10.2 billion to $11.0 billion.

    What happened

    Reported revenue of $10.60 billion, inside the range.

    Delivered

  4. Said on Apr 29, 2026

    Qualcomm guided Q3 FY2026 revenue of $9.2 billion to $10.0 billion.

    What happened

    Reported revenue of $9.95 billion, inside the range.

    Delivered

  5. Said on Jul 29, 2026

    Qualcomm guided Q4 FY2026 revenue of $9.7 billion to $10.5 billion.

    What happened

    Revenue was $10.32 billion, or $10.44 billion on Qualcomm's non-GAAP basis, which leaves out a $120 million settlement payment; both are inside the range.

    Delivered

  6. Said on Apr 29, 2026

    Qualcomm said a custom chip project with a large cloud company was on track for first shipments later in calendar 2026.

    What happened

    The FY2026 10-K says Qualcomm expects Data Center revenue to grow from Q1 FY2027 as shipments ramp under its custom chip agreements with large cloud customers.

    Too early to tell

  7. Said on Nov 4, 2026

    Qualcomm reiterated a $5 billion Data Center revenue target for FY2027.

    What happened

    FY2027 ends in September 2027. Qualcomm files no separate Data Center revenue line; the smaller units that include it had $476 million of FY2026 revenue.

    Too early to tell
Sources (8)
Next: What could go wrong

08What could go wrong

What could go wrong for Qualcomm?

  • Concentration

    Apple plans to rely on its own modems

    Qualcomm's FY2026 10-K says it expects Apple to primarily use its own modems going forward, with a "significant negative impact" on chip revenue. Apple was a 10%-plus customer from FY2023 to FY2026.

    Watch Handset chip revenue ($24.1 billion in FY2026) and the major-customer note in the next 10-K.

  • Concentration

    Two customers bring in about 42% of revenue

    Two unnamed customers were 22% and 20% of FY2026 revenue. Samsung, a 10%-plus customer, and Xiaomi, one in FY2024 and FY2025, also have their own chips.

    Watch The major-customer note in each 10-K.

  • Raw-material prices

    Memory shortages and higher costs

    Qualcomm says memory supply constraints will "negatively impact our financial results" and supplier cost increases will keep hurting margins. Gross margin fell to 53.1% in FY2026 from 55.4%.

    Watch Gross margin and handset revenue in Q1 FY2027.

  • Concentration

    Customers based in China

    Customers headquartered in China, including Hong Kong, brought in 41.9% of FY2026 revenue. That counts where customers are based, not where devices are sold.

    Watch China's share of revenue in the next 10-K (41.9% in FY2026, 45.9% in FY2025).

  • Execution

    Data Center spending ahead of revenue

    Qualcomm bought Alphawave, Modular and eight smaller businesses in FY2026, and capital spending doubled to $2.5 billion. The smaller units that include Data Center lost $607 million before tax. The Amazon warrant's $1.8 billion fair value will reduce revenue as related revenue is recognized.

    Watch Data Center revenue against the $5 billion FY2027 target Qualcomm stated on Nov 4, 2026.

  • Debt

    Payouts above free cash flow

    Buybacks and dividends of $11.7 billion were 135% of FY2026 free cash flowCash from operations minus spending on buildings and equipment. Learn more of $8.7 billion. Net debt rose to $7.4 billion from $1.3 billion at the end of FY2024.

    Watch Net debt and buybacks in the Q1 FY2027 10-Q.

  • Legal

    Legal cases with Arm

    Arm's appeal in its license case against Qualcomm was heard Oct 21, 2026. That appeal and the remaining issues in Qualcomm's case against Arm were pending as of the Nov 4, 2026 10-K.

    Watch Court rulings in the Arm cases.

  • Regulation

    Tax rules move net income

    A US tax law change led to a $5.7 billion charge in FY2025; an IRS notice led Qualcomm to reverse it in FY2026. The effective tax rate was 56% in FY2025 and minus 45% in FY2026.

    Watch The effective tax rate each quarter.

Sources (5)
Next: Supporters vs. critics

09Both sides

What do supporters and critics point to?

Facts each side points to. We don't say which side is right.

What supporters point to

  • Car chip revenue rose 52% to $6.0 billion in FY2026, from $1.5 billion in FY2022.
  • Licensing kept 72% of its $5.6 billion FY2026 revenue as earnings before tax, and licenses with Apple, Huawei and Transsion were renewed in FY2026.
  • Revenue landed inside or above Qualcomm's own guidance range in all eight quarters from Q1 FY2025 to Q4 FY2026 (Cityfort comparison from the earnings releases).
  • Qualcomm reiterated a $5 billion FY2027 Data Center revenue target on Nov 4, 2026, after closing the Alphawave and Modular deals.
  • Diluted shares fell to 1,073 million in FY2026 from 1,137 million in FY2022, as Qualcomm bought back stock.

What critics point to

  • Operating income fell 29.9% to $8.7 billion in FY2026, while net income rose because of a one-off $5.7 billion tax benefit.
  • Handset chip revenue fell 13% in FY2026, and Qualcomm expects Apple to primarily use its own modems.
  • Two unnamed customers were 22% and 20% of FY2026 revenue, and customers based in China were 41.9%.
  • Buybacks and dividends were 135% of FY2026 free cash flow, and net debt rose to $7.4 billion.
  • The Amazon warrant's $1.8 billion fair value will be recorded as a reduction of revenue as related revenue is recognized.
Next: What to watch next

10What to watch next

What should you watch next at Qualcomm?

Next event

Q1 FY2027 results

Date not announced yet.

  • Q1 FY2027 against Qualcomm's guidance

    Qualcomm said on Nov 4, 2026 that it expects revenue of $10.4 billion to $11.2 billion and GAAP diluted EPS of $1.03 to $1.23.

  • First Data Center shipments

    The FY2026 10-K says Data Center revenue should grow from Q1 FY2027 as shipments to large cloud customers ramp. Qualcomm reiterated a $5 billion FY2027 target on Nov 4, 2026.

  • Memory costs and margins

    Gross margin was 53.1% in FY2026, down from 55.4%. Qualcomm said on Nov 4, 2026 it expects the full benefit of its pricing actions in chip margins in the second half of FY2027.

  • Arm's appeal

    Arm's appeal was heard on Oct 21, 2026, with no ruling as of the Nov 4, 2026 10-K.

Next: Key facts

11Key facts

Key facts about Qualcomm

What does Qualcomm do?
Qualcomm designs chips for phones, cars and connected devices and licenses its patents to device makers. Qualcomm's revenue was $43.1 billion in FY2026, the year ended Sep 27, 2026, and it had about 57,000 employees.
What is Qualcomm's business model?
Qualcomm sells chips through its QCT segment and licenses patents through its QTL segment, which earns royalties mainly per device sold. In FY2026 Qualcomm's QCT revenue was $37.2 billion and its QTL revenue $5.6 billion. Apple and Samsung were each 10% or more of Qualcomm's FY2026 revenue.
How does Qualcomm make money?
Qualcomm makes most of its money selling chips, and keeps more of each dollar from licensing. In FY2026 Qualcomm's chip segment earned $10.1 billion before tax at a 27% margin, and its licensing segment $4.0 billion at 72%.
Is Qualcomm profitable?
Yes. Qualcomm's net income was $13.6 billion in FY2026 and $5.5 billion in FY2025. One tax item moves both years: a $5.7 billion charge in FY2025 that reversed as a benefit in FY2026. Qualcomm's operating income fell to $8.7 billion in FY2026 from $12.4 billion in FY2025.
What is Qualcomm's revenue by segment?
In FY2026 Qualcomm's QCT chip segment brought in $37.2 billion (86.3% of revenue), its QTL licensing segment $5.6 billion (12.9%), and smaller units that include Data Center $476 million (1.1%).
How much does Qualcomm earn from smartphone chips?
Qualcomm's handset chip revenue was $24.1 billion in FY2026, 55.8% of total revenue and down 13% from $27.8 billion in FY2025. Qualcomm linked the fall to lower shipments to certain major phone makers and to memory supply constraints.
How much does Qualcomm earn from automotive chips?
Qualcomm's automotive chip revenue was $6.0 billion in FY2026, up 52% from $4.0 billion in FY2025 and from $1.5 billion in FY2022. Automotive was 13.9% of Qualcomm's FY2026 revenue.
How much does Qualcomm earn from IoT chips?
Qualcomm's IoT chip revenue, from chips for computing, industrial, networking and robotics devices, was $7.1 billion in FY2026, up 8% from $6.6 billion in FY2025. IoT was 16.5% of Qualcomm's FY2026 revenue.
How much does Qualcomm earn from patent licensing?
Qualcomm's licensing segment, QTL, brought in $5.6 billion in FY2026 and kept 72% of it as earnings before tax. Qualcomm's QTL revenue was between $5.3 billion and $5.6 billion in each year from FY2023 to FY2026.
Who owns Qualcomm?
Qualcomm's 2026 proxy statementThe yearly filing about shareholder votes, the board and executive pay. Learn more lists BlackRock at 8.71%, from a January 2024 filing. Later filings show Vanguard Capital Management at 7.51% (April 2026) and State Street at 5.0% (August 2026). Qualcomm's officers and directors held less than 1% on Dec 15, 2025.
Sources (5)
Next: Go deeper

Terms on this page

Each explains the term in plain English, with the same number from other companies on Cityfort.

Go deeper

More detail from the same filings. Open any section.

12What it sells

12What it sells

What does Qualcomm sell?

Qualcomm designs the chips that run phones, cars and connected devices, and outside factories make most of them. It also licenses its patents to device makers for royalties.

  • Phone chips ($24.1B, 55.8% of FY2026 revenue)

    Processors and modems for smartphones, sold to phone makers. This is the handsets line of the chip segment, QCT.

  • IoT chips ($7.1B, 16.5%)

    Chips for personal computing and AI devices, and for industrial, networking and robotics equipment.

  • Car chips ($6.0B, 13.9%)

    Chips for cars. Revenue rose 52% in FY2026, mostly from higher revenue per unit.

  • Patent licenses ($5.6B, 12.9%)

    The QTL segment licenses Qualcomm's patents to device makers, which pay royalties mainly for each device they sell.

  • Data Center and other units ($476M, 1.1%)

    Data Center chips, government work and Modular, reported together as smaller units. Data Center revenue rose $235 million in FY2026, mainly from Alphawave.

Think of it like this

Licensing works like a toll: licensees pay Qualcomm a royalty mainly for each device they sell.

What it does

  • Does: Designs chips and has outside foundries such as TSMC make most of them
  • Does: Licenses its patents to device makers in return for royalties
  • Does: Sells chips for phones, cars, computers and industrial equipment

What it does not do

  • Does not: Does not make most of its own chips: it makes only some radio-frequency and filter products itself
  • Does not: Does not say which customer was 22% or 20% of FY2026 revenue
  • Does not: Does not file a separate Data Center revenue figure
Sources (1)
13How the money flows

13How the money flows · FY2026

How does money flow through Qualcomm?

Money in

  • Chips and services revenue$36.9B
  • Licensing revenue$6.2B
  • Investment and other income$1.4B

The company

Qualcomm

$44.6B came in

Money out

  • Cost of revenues$20.2B
  • Research and development$10.2B
  • Selling, general and admin$3.7B
  • Restructuring and other$332M
  • Interest$689M
  • Income tax benefit, one-off (adds)−$4.2B
  • Net income$13.6B
  1. Customers paid Qualcomm $43.1 billion in FY2026: $36.9 billion for chips and services and $6.2 billion for licenses. Investment and other income added $1.4 billion.
  2. Cost of revenues was $20.2 billion.
  3. Research took $10.2 billion, selling and admin $3.7 billion, and restructuring and other items $0.3 billion.
  4. That left operating income of $8.7 billion. Interest cost $0.7 billion.
  5. Releasing a $5.7 billion tax allowance turned income tax into a $4.2 billion benefit, which lifted net income to $13.6 billion.
Sources (1)
14What it needs to run

14What it needs to run

What does Qualcomm need to run?

  • Outside chip factories

    Foundries such as TSMC, Samsung Electronics and GlobalFoundries make most of Qualcomm's chips.

  • Memory

    Memory comes from suppliers including Micron and Samsung. Qualcomm says memory supply constraints and price increases cut phone makers' build plans in FY2026.

  • Engineers

    Research and development cost $10.2 billion in FY2026, 23.7% of revenue. Qualcomm had about 57,000 employees.

  • Supply commitments

    Purchase obligations were $18.6 billion at Sep 27, 2026, with $13.8 billion due within 12 months. Inventory was $8.6 billion.

Sources (1)
15Where it sells

15Where it sells · FY2026

Where does Qualcomm sell?

  • China, including Hong Kong ($18.1 billion; by customer headquarters)42%
  • United States ($10.8 billion)25%
  • South Korea ($9.5 billion)22%
  • Other countries ($4.8 billion)11%
Sources (1)
16Competitors and what protects it

16Competitors and what protects it

Who does Qualcomm compete with?

Qualcomm's FY2026 10-K does not name its chip competitors or give market shares; it says some of its largest customers, such as Samsung and Xiaomi, have developed their own chips.

  • Apple

    NASDAQ: AAPL

    A customer that uses its own modem in some smartphones. Qualcomm's FY2026 10-K says it expects Apple to primarily use its own modems going forward.

  • Samsung

    A 10%-plus customer that also has its own chips, Qualcomm's FY2026 10-K says. Samsung Electronics is also one of Qualcomm's foundries.

  • Xiaomi

    A customer that also has its own chips, Qualcomm's FY2026 10-K says. It was a 10%-plus customer in FY2024 and FY2025.

What protects the business

Each strength is scored 1 (weak) to 5 (strong) for the business, with the reason. It is not a rating of the share.

  • Patent licensing4 of 5

    QTL kept 72% of its $5.6 billion FY2026 revenue as earnings before tax, and long-term licenses with Apple, Huawei and Transsion were renewed in FY2026.

  • Research spending4 of 5

    Research and development cost $10.2 billion in FY2026, 23.7% of revenue.

  • Range of chip markets3 of 5

    Phone chips were 64.7% of chip revenue in FY2026, down from 76.5% in FY2022, as car and IoT chips grew to $13.1 billion.

Weak spot

Large customers who make their own chips

Apple uses its own modem in some phones and is expected to rely mainly on it, and Samsung and Xiaomi have their own chips. Two customers were 22% and 20% of FY2026 revenue.

Sources (4)
17Where growth could come from

17Where growth could come from

Where could Qualcomm's growth come from?

Qualcomm said in its Q4 FY2026 earnings release (Nov 4, 2026) that it expects Q1 FY2027 revenue of $10.4 billion to $11.2 billion and GAAP diluted EPS of $1.03 to $1.23. CEO Cristiano Amon said non-handset revenue is projected to grow by more than 60% in FY2027, and reiterated a $5 billion FY2027 Data Center revenue target.
Management statement, Nov 4, 2026. Reported as a statement, not our forecast.

  • Car chips

    Working

    Up 52% to $6.0B in FY2026

    Automotive revenue was $1.5 billion in FY2022. Q4 FY2026 was its first $2 billion quarter, up 89% from a year earlier.

    Status: Working, on track against what the company said.

  • IoT chips

    Mixed

    Up 8% to $7.1B in FY2026

    IoT revenue fell from $7.4 billion in FY2022 to $5.4 billion in FY2024, then rose two years in a row.

    Status: Mixed, partly on track.

  • Data Center chips

    Early

    +$235M of revenue in FY2026, mainly from Alphawave

    Qualcomm bought Alphawave in December 2025 and Modular in July 2026. Its FY2026 10-K says it expects Data Center revenue to grow from Q1 FY2027 as shipments to large cloud customers ramp.

    Status: Early, too early to judge.

  • Non-handset revenue goal for FY2029

    New

    Car + IoT chips: $13.1B in FY2026, from $10.6B

    Qualcomm said on Jul 29, 2026 that it targets $40 billion of non-handset revenue by FY2029, "nearly double" the target it shared in November 2024.

    Status: New, recently announced.

Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.

Sources (4)
18The company's own measures (non-GAAP)

18The company's own measures · FY2025, FY2026 and Q4 FY2026

What do Qualcomm's own measures show?

Adjusted (non-GAAP) figures are Qualcomm's own measures, shown next to the official (GAAP) number. They are never added together.

  • Official (GAAP): Diluted EPS, FY2026

    $12.70

    Company's own measure: Non-GAAP EPS, FY2026

    $10.54

    Qualcomm leaves out QSI, stock-based payPay given as shares instead of cash, which spreads ownership more thinly. Learn more, acquisition items, tax items and other items. Since Q1 FY2026 it applies a fixed estimated tax rate, so the $5.32 per share tax benefit is left out.

  • Official (GAAP): Net income, FY2026

    $13.6B

    Company's own measure: Non-GAAP net income, FY2026

    $11.3B

    Same exclusions. Stock-based pay was $3.5 billion in FY2026, 8.0% of revenue.

  • Official (GAAP): Diluted EPS, FY2025

    $5.01

    Company's own measure: Non-GAAP EPS, FY2025

    $12.03

    Same exclusions; this measure leaves out the $5.7 billion tax charge. Periods before FY2026 were not restated for the new tax-rate method.

  • Official (GAAP): Net income, FY2025

    $5.5B

    Company's own measure: Non-GAAP net income, FY2025

    $13.3B

    Same exclusions. Stock-based pay of $2.8 billion equaled about half of FY2025 GAAP net income, because the tax charge cut that year's net income.

  • Official (GAAP): Revenue, Q4 FY2026

    $10.3B

    Company's own measure: Non-GAAP revenue, Q4 FY2026

    $10.4B

    Leaves out a $120 million payment to a customer from a legal settlement, which reduced GAAP revenue.

  • Official (GAAP): Diluted EPS, Q4 FY2026

    $1.17

    Company's own measure: Non-GAAP EPS, Q4 FY2026

    $2.17

    Same exclusions, including $235 million of restructuring and $141 million of acquisition-related items in the quarter.

These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.

Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out · Stock-based compensation and dilution: pay that becomes shares

Sources (3)
19Financial strength and debt

19Financial strength · Sep 27, 2026

How much debt does Qualcomm have?

At Sep 27, 2026 Qualcomm's debt exceeded its cash and marketable securities by $7.4 billion, less than its $11.1 billion of FY2026 cash from operations.
  • Total debt$15.1B
  • Cash and investments$7.7B
  • Net debt (debt minus cash)$7.4B
  • Net worth (shareholders' money)$30.4B
Debt to equity
0.5×
$ of debt for every $1 of shareholders' money
Interest cover
12.6×
how many times operating profit covers interest
  • Net debt is a Cityfort calculation from FY2026 10-K: $15,112 million of debt less $4,636 million of cash and $3,045 million of marketable securities.
  • Interest coverage is FY2026 operating income divided by interest expense: $8,658 million ÷ $689 million (Cityfort calculation from FY2026 10-K).
  • Most of the debt is fixed-rate notes, with $2.0 billion due in 2027 and the rest from 2028 to 2053, plus $499 million of commercial paper (short-term notes). A $4.0 billion credit line running to Aug 8, 2029 was undrawn.
  • Net debt was $1,334 million at the end of FY2024 and $4,656 million at the end of FY2025 (Cityfort calculation from FY2025 10-K and FY2026 10-K). Counting $2,323 million of cash held for the Alphawave payment, FY2025 net debt was $2,333 million.
  • Goodwill rose to $16.4 billion from $11.4 billion after the Alphawave and Modular deals. Operating lease liabilities of $880 million are not counted as debt.
  • Inventory rose to $8.6 billion from $6.5 billion, and purchase obligations were $18.6 billion.
Sources (2)
20Who owns it

20Who owns it · ownership as of Dec 15, 2025

Who owns Qualcomm?

Qualcomm has one class of common stock, with one vote per share. Officers and directors as a group (18 people) held 573,776 shares on Dec 15, 2025, which the proxy marks as less than 1%.
Share classes
Qualcomm share classes: shares outstanding (millions) and votes per share
ClassShares (millions)Votes per shareHeld by% of shares% of votesTraded
Common stock (About 1,070 million shares on Nov 2, 2026 (FY2026 10-K cover). About 4 million Alphawave exchangeable shares convert one-for-one and are not in that count.)1,0701–––Yes
Holders of 5% or more
Qualcomm holders of 5% or more, from the proxy statement or later Schedule 13G filings; each row shows its own date
HolderSharesVotesAs ofSourceNote
BlackRock, Inc.8.7%–Jan 25, 2024S17Proxy figure, from a Schedule 13G/A filed Jan 25, 2024 (92,564,761 shares, holding on Dec 31, 2023).
Vanguard Capital Management7.5%–Apr 30, 2026S20Schedule 13G filed Apr 30, 2026 (80,227,136 shares, holding on Mar 31, 2026).
State Street Corporation5.0%–Aug 7, 2026S21Schedule 13G filed Aug 7, 2026 (52,822,532 shares, holding on Jun 30, 2026).
The Vanguard Group0.0%–Mar 27, 2026S19, S17Reported 0 shares in a Schedule 13G/A filed Mar 27, 2026 (event Mar 13, 2026). The 2026 proxy had shown 10.53%, from a June 2024 filing.

From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.

Learn: How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes

Sources (6)
21What it does with profit

21What it does with profit

What does Qualcomm do with its profit?

Dividends and buybacks were $11.7 billion in FY2026, 135% of free cash flow (Cityfort calculation from FY2026 10-K). Qualcomm used up a $15.0 billion buyback authorization in Q4 FY2026 and announced a new $20.0 billion one on Mar 17, 2026; $19.6 billion remained at Sep 27, 2026. The Q4 FY2026 dividend was $0.92 a share. Payout is dividends paid ÷ net income (Cityfort calculation from FY2024 10-K and FY2026 10-K), so FY2025 and FY2026 swing with the tax item.

Dividend per share

$3.62FY2026

Dividend paid for each share, by financial year.

$ per share

See the numbers
Dividend per share ($ per share)
YearDividend per shareShare of profit paid out
FY2022$2.8624.8%
FY2023$3.1047.9%
FY2024$3.3036.4%
FY2025$3.4868.7%
FY2026$3.6228.3%

  • Buyback · Sep 25, 2022

    21 million shares repurchased during FY2022, at an average $149.95 (cash paid).

    $3.1B

  • Buyback · Sep 24, 2023

    25 million shares repurchased during FY2023, at an average $117.93 (cash paid).

    $3.0B

  • Buyback · Sep 29, 2024

    25 million shares repurchased during FY2024, at an average $161.37 (cash paid).

    $4.1B

  • Buyback · Sep 28, 2025

    56 million shares repurchased during FY2025, at an average $155.43 (cash paid).

    $8.8B

  • Buyback · Sep 27, 2026

    48 million shares repurchased during FY2026, at an average $161.96 (cash paid).

    $7.8B

  • Money raised · May 22, 2025

    Sold $1.5 billion of notes: $500 million at 4.50% due 2030, $400 million at 4.75% due 2032 and $600 million at 5.00% due 2035.

    $1.5B

Sources (5)
22Governance signals

22Governance signals

What do Qualcomm's governance filings show?

Auditor
PricewaterhouseCoopers LLP, since 1985
Auditor changes
None in the period covered
Audit qualifications
None reported
Related-party dealings
The 2026 proxy reports that CEO Cristiano Amon's brother works at Qualcomm as a vice president. In fiscal 2025 he earned $329,708 in salary and $176,718 in cash incentives, plus stock awards. The HR and Compensation Committee approved the arrangement.
Credit rating
Moody's and S&P (as stated in Qualcomm's May 19, 2025 pricing term sheet for its notes) A2 (Moody's) / A (S&P) (Stable (both, as stated in the term sheet)), May 19, 2025

A credit rating describes the company's ability to repay debt. It is not a rating of the share.

Flags to know about

  • other

    Legal disputes with Arm

    In Arm's case against Qualcomm over a license tied to Nuvia, a jury (Dec 20, 2024) and a final judgment (Sep 30, 2025) went for Qualcomm; Arm's appeal was heard Oct 21, 2026. In Qualcomm's own case, a jury found on Oct 13, 2026 that Arm breached one license agreement and interfered with a customer relationship, but did not breach another. Both were pending as of the Nov 4, 2026 10-K.

  • other

    ParkerVision patent claim

    ParkerVision seeks damages, alleging that Qualcomm radio-frequency products sold from 2008 to 2018 infringed its patents. On Sep 30, 2026 the Federal Circuit denied ParkerVision's appeal for lack of jurisdiction, and the case returned to the lower court. Qualcomm has recorded no accrual for the legal matters described in its 10-K; it says losses are reasonably possible but not probable, and the amount cannot be reasonably estimated.

  • disclosure

    Customers not matched to their shares

    Qualcomm names Apple and Samsung as 10%-plus customers in FY2026 but does not say which was 22% and which 20% of revenue. It files no separate Data Center revenue figure.

  • other

    Insider share rules

    Qualcomm's insider trading policy bars executives and directors from hedging Qualcomm shares and from using them as collateral for loans.

  • other

    Board and finance changes

    Patricia Grech became Chief Accounting Officer on Aug 25, 2025. Zico Kolter joined the board in September 2025. Neil Smit retired and Christopher Young left at the Mar 17, 2026 annual meeting.

  • other

    Shareholder votes and rights

    At the Mar 17, 2026 meeting, executive pay received 91.8% of votes cast for or against (Cityfort calculation from the 8-K filed Mar 19, 2026). Since Dec 9, 2025, holders of 25% or more, held net long for a year, can call a special meeting.

Sources (9)
23What the market paid

23What the market paid · price as of Nov 5, 2026

What did the market pay for Qualcomm on Nov 5, 2026?

Price as of Nov 5, 2026 (shown for education; prices change daily).

Price as of Nov 5, 2026: Qualcomm closed at $156.75 on Nasdaq. Times 1,070 million shares (Nov 2, 2026), that is a market value of about $167.7 billion (Cityfort calculation from the Nov 5, 2026 Nasdaq closing price and the FY2026 10-K cover); the count leaves out about 4 million Alphawave exchangeable shares. P/E is price ÷ earnings per share: 12.3 on FY2026 diluted EPS of $12.70, which includes a one-off tax benefit of $5.32 a share. P/B is market value ÷ equity of $30.4 billion: 5.5. EV/EBITDA adds net debt of $7.4 billion to market value, then divides by FY2026 EBITDA of $10.3 billion: 17.0. The $0.92 quarterly dividend is $3.68 over four quarters, or 2.35% of that price.

Share price
$156.75
Market value (market cap)
$167.7B
P/E
12.3×
P/B
5.5×
EV/EBITDA
17×

More price-based ratios · as of Nov 5, 2026

Each ratio divides a number from the company's filings by the market value or share price on Nov 5, 2026. Prices change daily, so these ratios do too.

Shares used for the market value: 1,070 million ($156.75 × 1,070 million shares ≈ $167.7B). Source: Form 10-K, fiscal 2026 (year ended Sep 27, 2026); Form 10-Q, Q3 fiscal 2026 (quarter ended Jun 28, 2026)

Source: QCOM historical prices (Nasdaq), close Nov 5, 2026; Form 10-K, fiscal 2026 (year ended Sep 27, 2026); Q4 and fiscal 2026 earnings release (8-K Exhibit 99.1)

Sources (7)
24How it got here

24How it got here

How did Qualcomm get here?

  1. 1985

    Milestone

    Incorporated in California

    Qualcomm reincorporated in Delaware in 1991. It is based in San Diego.

  2. 2022

    Business-model change

    Buys Veoneer, keeps Arriver

    Qualcomm bought Veoneer with SSW Partners in FY2022, kept its Arriver business for cars and sold the rest.

  3. 2023

    Crisis

    Revenue falls 19%

    Revenue fell to $35.8 billion in FY2023 from $44.2 billion, and handset chip revenue fell to $22.6 billion from $28.8 billion.

  4. 2024

    Milestone

    Jury rules for Qualcomm in Arm's case

    A jury returned a verdict for Qualcomm on Dec 20, 2024. Final judgment followed on Sep 30, 2025, and Arm appealed.

  5. 2025

    Crisis

    Tax charge turns a quarter into a loss

    After a US tax law change, Qualcomm set up a $5.7 billion valuation allowance, a write-down of tax assets. Q4 FY2025 showed a net loss of $3.1 billion.

  6. 2025

    Business-model change

    Alphawave deal closes

    Qualcomm closed its purchase of the UK chip-design company on Dec 18, 2025, at an accounting price of $2.3 billion, mainly in shares. It is part of the Data Center unit.

  7. 2026

    Milestone

    Tax charge reversed

    After IRS Notice 2026-07, Qualcomm released the $5.7 billion allowance in Q2 FY2026. That quarter's net income was $7.4 billion.

  8. 2026

    Business-model change

    Modular deal and Amazon warrant

    Qualcomm closed its Modular purchase on Jul 28, 2026, issuing 18 million shares. On Sep 3, 2026 it gave an Amazon affiliate a warrant for up to 25 million shares at $161.26, vesting with up to $60 billion of purchases.

Sources (7)

25Sources and changes

Where every number on this page comes from

Sources (29 documents)
  1. S1Form 10-K, fiscal 2026 (year ended Sep 27, 2026) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Nov 4, 2026
  2. S2Form 10-K, fiscal 2025 (year ended Sep 28, 2025) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Nov 5, 2025
  3. S3Form 10-K, fiscal 2024 (year ended Sep 29, 2024) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Nov 6, 2024
  4. S4Form 10-K, fiscal 2023 (year ended Sep 24, 2023) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Nov 1, 2023
  5. S5Form 10-Q, Q3 fiscal 2026 (quarter ended Jun 28, 2026) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Jul 29, 2026
  6. S8Q4 and fiscal 2026 earnings release (8-K Exhibit 99.1) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Nov 4, 2026
  7. S9Q3 fiscal 2026 earnings release (8-K Exhibit 99.1) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Jul 29, 2026
  8. S10Q2 fiscal 2026 earnings release (8-K Exhibit 99.1) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Apr 29, 2026
  9. S11Q1 fiscal 2026 earnings release (8-K Exhibit 99.1) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Feb 4, 2026
  10. S12Q4 and fiscal 2025 earnings release (8-K Exhibit 99.1) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Nov 5, 2025
  11. S13Q3 fiscal 2025 earnings release (8-K Exhibit 99.1) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Jul 30, 2025
  12. S14Q2 fiscal 2025 earnings release (8-K Exhibit 99.1) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Apr 30, 2025
  13. S15Q1 fiscal 2025 earnings release (8-K Exhibit 99.1) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Feb 5, 2025
  14. S172026 proxy statement (DEF 14A) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Jan 22, 2026
  15. S18Form 8-K, Item 5.07: 2026 annual meeting vote results · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Mar 19, 2026
  16. S19Schedule 13G/A by The Vanguard Group (0 shares, event Mar 13, 2026) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Mar 27, 2026
  17. S20Schedule 13G by Vanguard Capital Management (7.51%, as of Mar 31, 2026) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Apr 30, 2026
  18. S21Schedule 13G by State Street Corporation (5.0%, as of Jun 30, 2026) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Aug 7, 2026
  19. S22Form 8-K, Item 3.02: warrant issued to an Amazon affiliate · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Sep 8, 2026
  20. S23Form 8-K, Item 3.02: agreement to acquire Modular Inc · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Jun 24, 2026
  21. S25Form 8-K, Item 3.02: recommended offer for Alphawave IP Group · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Jun 9, 2025
  22. S26Form 8-K, Item 1.01: $1.5 billion of senior notes due 2030, 2032 and 2035 · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · May 22, 2025
  23. S27Free writing prospectus: pricing term sheet for notes due 2030, 2032 and 2035 (states Moody's and S&P ratings) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · May 19, 2025
  24. S28Form 8-K, Item 5.03: amended bylaws (special meeting right) · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Dec 10, 2025
  25. S29QCOM historical prices (Nasdaq), close Nov 5, 2026 · Nasdaq · Tier 1: company or exchange filing · Nov 5, 2026
  26. S30Form 8-K, Item 5.02: new Chief Accounting Officer · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Aug 25, 2025
  27. S31Form 8-K, Item 5.02: director Neil Smit to retire · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Dec 16, 2025
  28. S32Form 8-K, Item 5.02: director Christopher Young to step down · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Jan 16, 2026
  29. S33Form 8-K, Item 5.02: Zico Kolter elected director · Qualcomm Incorporated (SEC EDGAR) · Tier 1: company or exchange filing · Sep 2, 2025
Changes to this page (v1 · Nov 6, 2026)
  1. v1 · Nov 6, 2026First version, through Q4 FY2026 (quarter ended Sep 27, 2026). (first version)

Numbers come only from tier 1 and tier 2 sources. Read how we research.

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All information is taken from publicly available sources, mainly company filings with the SEC, which are listed on each page with dates. We work to keep it accurate and correct errors publicly, but we do not guarantee that it is complete, accurate or up to date. Any market price or price-based ratio shown is dated, may be out of date by the time you read it, and is included only to explain concepts.

Statements by company management, including forward-looking statements and guidance, are reported as the company's statements, with their date and source; they are not our forecasts. Adjusted (non-GAAP) figures are the company's own measures and are shown next to the official (GAAP) figures.