Smartphones Decline, Automotive Sector Sees Strong Growth: Qualcomm's Quarterly Numbers

Qualcomm has announced the results for the second fiscal quarter of 2026, which ended on March 29, highlighting a complex picture: on one hand, performance is in line with expectations and there is a significant improvement in earnings; on the other hand, a cautious estimate initially penalized the stock on the market.

In detail, revenues stand at $10.6 billion, essentially stable year-on-year. The net profit reached $7.37 billion, up 162%, supported by an extraordinary tax benefit of $5.7 billion linked to the release of a "valuation allowance" (an accounting provision).

The QCT (chipset) business recorded revenue down 4% to $9.1 billion, with EBIT declining 14% and margins at 27%. Within the segment, smartphones weigh heavily, dropping to $6 billion (-13%), while the automotive sector shines more, growing by 38% to $1.3 billion, and IoT, which rose by 9% to $1.7 billion. The growth in the automotive sector confirms Qualcomm's progressive consolidation in systems for assisted driving and vehicle connectivity.

The increase in memory prices is impacting demand in consumer electronics, affecting PCs and smartphones. According to Gartner, PC prices could rise by 17% in 2026, while IDC reports a decline in global smartphone shipments exceeding 4%.

In this context, Qualcomm expects the Chinese market to hit its lowest point in the third fiscal quarter, before beginning to grow sequentially again. Forecasts for the third quarter indicate revenues between $9.2 and $10 billion, below analysts' expectations. This initially caused a drop in the stock, which was followed by a quick reversal after further management statements.

CEO Cristiano Amon emphasized that the company is undergoing a deep transformation phase, driven by the rise of AI agents. Qualcomm is adapting its roadmap to integrate AI capabilities across all platforms. A key element is the entry into the datacenter market: the company expects to begin shipping chips destined for a large hyperscaler within the year, whose name has not yet been disclosed. This is a step aimed at bridging the gap with competitors like NVIDIA and complements the AI200 and AI250 accelerators for AI inference.

On the mobile front, Qualcomm could benefit from new opportunities tied to artificial intelligence. There are rumors that the company is collaborating with OpenAI to develop AI chips for future devices based on intelligent agents. Meanwhile, the issue of losing a client like Apple, which has begun transitioning to proprietary modems, remains a concern.