Qualcomm reported adjusted earnings per share of $3.50 for the first quarter of fiscal 2026, surpassing the consensus estimate of $3.39 and marking a 2.6% year-over-year increase from $3.41. This result reflects robust execution across the company’s chipset and licensing businesses, driven by sustained demand for premium mobile processors and growing adoption in automotive and IoT applications.

The company recorded revenue of $12.25 billion, beating the expected $12.21 billion and representing an 8% increase compared with the prior-year period. Growth was fueled by strong mobile platform shipments, higher royalty contributions from device makers upgrading to 5G, and expanded design wins in infotainment and telematics systems, where Qualcomm achieved its highest quarterly revenue on record.

For the current quarter, Qualcomm forecast adjusted EPS of $2.45 to $2.65 and revenue between $10.2 billion and $11.0 billion, below analyst projections of $2.89 EPS on $11.11 billion in sales. Executives attributed the guidance shortfall to a global memory supply shortage, as large orders for data-center modules have siphoned production capacity away from smartphone-grade memory. Smartphone manufacturers are managing inventories tightly, which is expected to cap device build volumes through the spring.

Qualcomm highlighted continued progress on artificial intelligence integration across its Snapdragon Elite platform and cloud-edge offerings. The company secured new partnerships for AI-enabled automotive solutions and reported a 25% increase in AI-related design wins year-over-year. CEO Cristiano Amon emphasized that while handset demand remains strong, the future upside lies in diversifying into emerging markets such as automotive ADAS, industrial automation, and private 5G networks.