dailyloe.com – Qualcomm (QCOM) investors will receive a reality check on April 29 when the company reports its second quarter of fiscal 2026 earnings. The chipmaker must prove its strong momentum can withstand a slowing smartphone cycle and cautious analyst forecasts. This is not because the company is weak, but because expectations are rising.
Valued at $144.6 billion, Qualcomm designs chips and software for smartphones, cars, computers, and connected devices. The company entered fiscal 2026 with solid momentum.
Revenue rose 5% year-over-year to $12.2 billion. Earnings increased by 3% to $3.5 per share.
Its semiconductor division, QCT, generated $10.6 billion in revenue, an increase of 5% year-over-year. Handset chip sales accounted for 73% of overall QCT revenue but only increased 3% year-over-year.
While declining handset sales are a concern, automotive sales stood out. Automotive revenue reached $1.1 billion, up 15% year-over-year.
The company has secured significant partnerships, including a long-term supply agreement with Volkswagen Group (VWAGY). It also has collaborations with major automakers such as Audi and Porsche (POAHY).
In IoT, revenues reached $1.7 billion, growing 9% year-over-year. This growth was due to strong demand in industrial, networking, and consumer applications.
Qualcomm is rapidly pushing into industrial computers, smart cameras, drones, and edge AI systems with its Dragonwing platform. The company also reported $1.6 billion in revenue for the QLT segment, its licensing business.
This licensing revenue was fueled by strong global handset demand, particularly in premium and high-tier devices. Furthermore, Qualcomm’s strategic acquisitions are strengthening its long-term positioning in the semiconductor space.
It completed the acquisition of Alphawave Semi to enhance high-speed connectivity capabilities. It also acquired Ventana Micro Systems to expand its RISC-V CPU development.
