Financial Analysis

Acquisitions Pending. On June 9, 2025, we announced that we reached an agreement to acquire Alphawave IP Group plc (Alphawave) at an implied enterprise value of approximately $2.4 billion (as of the announcement date). The purchase price will be paid in cash or, if validly elected by eligible shareholders of Alphawave, in shares of our common stock or securities exchangeable for shares of our common stock (Stock Consideration). The accounting purchase price we record for the transaction could differ significantly from the aforementioned amount due to movements in the price of our common stock and the number of Alphawave shareholders that elect for Stock Consideration, among other factors. Alphawave is a developer of high-speed wired connectivity and compute technologies delivering IP, custom silicon, connectivity products and chiplets. The acquisition aims to further accelerate, and provide key assets for, our expansion into data centers. The acquisition was approved by the requisite majority of Alphawaves shareholders on August 5, 2025. The acquisition is subject to certain other closing conditions, including receipt of regulatory approvals. Subject to the satisfaction of these conditions, this acquisition is expected to complete during the first quarter of calendar 2026. In connection with the pending acquisition, we agreed to restrict the use of $2.3 billion in cash, which is presented as restricted cash on our consolidated balance sheet, for the purpose of satisfying paym …

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Commitments and Contingencies Legal and Regulatory Proceedings. ParkerVision, Inc. v. QUALCOMM Incorporated: On May 1, 2014, ParkerVision, Inc. (ParkerVision) filed a complaint against us in the United States District Court for the Middle District of Florida alleging that certain of our products infringed seven ParkerVision patents. ParkerVision subsequently reduced the number of patents asserted to three. The asserted patents are now expired, and injunctive relief is no longer available. ParkerVision continues to seek damages related to the sale of many of our radio frequency (RF) products sold between 2008 and 2018. On March 23, 2022, the district court entered judgment in our favor on all claims and closed the case. ParkerVision appealed to the United States Court of Appeals for the Federal Circuit (Federal Circuit), and on September 6, 2024, the Federal Circuit reversed the judgment of the district court, citing certain substantive and procedural issues, and remanded the case to the district court for further proceedings. Following a claim construction ruling by the district court, the parties agreed to a stipulated judgment of non-infringement with respect to certain of ParkerVisions claims (Receiver Claims). On October 2, 2025, the court entered a final judgment in our favor with respect to the Receiver Claims and severed and stayed ParkerVisions remaining claims (Transmitter Claims), pending appeal of the courts claim construction ruling and resulting determination of …

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Employee Benefit Plans Equity Compensation Plans. On March 18, 2025, our stockholders approved the Amended and Restated Qualcomm Incorporated 2023 Long-Term Incentive Plan (the 2023 Plan), including an increase in the share reserve by 23 million shares. The 2023 Plan provides for the grant of RSUs and other stock-based awards. The RSUs generally include dividend-equivalent rights and vest over three years from the date of grant. The Board of Directors may amend or terminate the 2023 Plan at any time. Certain amendments, including an increase in the share reserve, require stockholder approval. At September 28, 2025, approximately 69 million shares were available for future grant under the 2023 Plan. The following is a summary of employee RSU transactions that contain only service requirements to vest: Number of Shares (in millions) Weighted-Average Grant Date Fair Value RSUs outstanding at September 29, 2024 28 $ 129.61 RSUs granted 22 163.17 RSUs canceled/forfeited (2) 140.43 RSUs vested (20) 133.93 RSUs outstanding at September 28, 2025 28 151.75 The weighted-average estimated grant date fair values of employee RSUs that contain only service requirements to vest granted during fiscal 2024 and 2023 were $134.31 and $116.80 per share, respectively. Upon vesting, we issue new shares of common stock. For the majority of RSUs, shares are issued on the vesting dates net of the amount of shares needed to satisfy statutory tax withholding requirements to be paid by us on behalf of t …

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Debt Long-term Debt. During the third quarter of fiscal 2025, we repaid $1.4 billion of unsecured fixed-rate notes that matured in May 2025. In May 2025, we also issued $1.5 billion of unsecured fixed-rate notes, consisting of $500 million of 4.50% notes, $400 million of 4.75% notes and $600 million of 5.00% notes (collectively, May 2025 Notes) that mature on May 20, 2030, May 20, 2032 and May 20, 2035, respectively. The net proceeds from the May 2025 Notes will be used for general corporate purposes. The following table provides a summary of our long-term debt: September 28, 2025 September 29, 2024 Maturities Amount (in millions) Effective Rate Maturities Amount (in millions) Effective Rate Fixed-rate notes 2027 - 2053 $ 15,107 2.39% - 5.12% 2025 - 2053 $ 14,972 2.37% - 5.07% Total principal 15,107 14,972 Unamortized discount, including debt issuance costs (201) (212) Hedge accounting adjustments (95) (126) Total long-term debt $ 14,811 $ 14,634 Reported as: Short-term debt $ $ 1,364 Long-term debt 14,811 13,270 Total $ 14,811 $ 14,634 At September 28, 2025, future principal payments of our long-term debt were as follows (in millions): 2026 $ 2027 2,000 2028 962 2029 2030 1,700 Thereafter 10,445 Total $ 15,107 At September 28, 2025, the aggregate fair value of the notes, based on Level 2 inputs, was approximately $14.2 billion. At September 28, 2025, all of our outstanding long-term debt is comprised of unsecured fixed-rate notes. We may redeem the outstanding fixed-rate not …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

QCT revenue streams were as follows (in millions): 2025 2024 2023 Handsets (1) $ 27,793 $ 24,863 $ 22,570 Automotive (2) 3,957 2,910 1,872 IoT (internet of things) (3) 6,617 5,423 5,940 Total QCT revenues $ 38,367 $ 33,196 $ 30,382 (1) Includes revenues from products sold for use in mobile handsets. (2) Includes revenues from products sold for use in automobiles, including connectivity, digital cockpit and ADAS/AD. (3) Primarily includes products sold for use in the following industries and applications: consumer (including PCs, XR and other personal computing devices), edge networking (including mobile broadband and wireless access points) and industrial (including handhelds, retail, tracking and logistics and utilities).

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Fair Value Measurements and Marketable Securities The following table presents our fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at September 28, 2025 (in millions): Level 1 Level 2 Total Assets: Cash equivalents $ 2,890 $ 437 $ 3,327 Marketable securities: Corporate bonds and notes $ $ 3,309 $ 3,309 Mortgage- and asset-backed securities 802 802 U.S. Treasury securities and government-related securities 110 62 172 Equity securities 352 352 Total marketable securities 462 4,173 4,635 Derivative instruments 59 59 Other investments (1) 1,099 1,099 Total assets measured at fair value $ 4,451 $ 4,669 $ 9,120 Liabilities: Derivative instruments $ $ 163 $ 163 Other liabilities (1) 1,095 1,095 Total liabilities measured at fair value $ 1,095 $ 163 $ 1,258 (1) Other investments and other liabilities included in Level 1 are comprised of our deferred compensation plan assets and liabilities. At September 28, 2025 and September 29, 2024, our marketable securities were all classified as current and were primarily comprised of available-for-sale debt securities (the vast majority of which were corporate bonds and notes). The contractual maturities of available-for-sale debt securities were as follows (in millions): September 28, 2025 Years to Maturity: Less than one year $ 1,041 One to five years 2,431 Five to ten years 9 No single maturity date 802 Total $ 4,283 Debt securities with no single maturity date included mortgage- and asset-backed s …

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Income Taxes The components of the income tax provision from continuing operations were as follows (in millions): 2025 2024 2023 Current provision: Federal $ 1,682 $ 1,306 $ 1,229 State 7 3 10 Foreign (1) 981 805 491 2,670 2,114 1,730 Deferred provision (benefit): Federal 4,373 (1,553) (1,475) State (5) (4) (8) Foreign (1) 84 (331) (143) 4,452 (1,888) (1,626) $ 7,122 $ 226 $ 104 (1) The foreign component of the income tax provision included foreign withholding taxes on royalty revenues included in U.S. earnings. The components of income from continuing operations before income taxes by U.S. and foreign jurisdictions were as follows (in millions): 2025 2024 2023 United States $ 11,174 $ 9,169 $ 6,400 Foreign 1,489 1,167 1,043 $ 12,663 $ 10,336 $ 7,443 The following is a reconciliation of the expected statutory federal income tax provision to our actual income tax provision from continuing operations (in millions, except percentages). A significant portion of our U.S. income qualifies for preferential treatment as FDII at a 13% effective tax rate. 2025 2024 2023 Expected income tax provision at federal statutory tax rate $ 2,659 $ 2,171 $ 1,563 Valuation allowance on federal deferred tax assets resulting from OBBB 5,724 Benefit from FDII deduction, excluding the impact of capitalizing research and development expenditures (735) (596) (447) Benefit from FDII deduction related to capitalizing research and development expenditures (492) (585) (598) Benefit related to research and …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Pronouncement. Segment Reporting Disclosures: In November 2023, the Financial Accounting Standards Board (FASB) issued new requirements to disclose certain incremental segment information on an annual and interim basis, including (among other items) additional disclosure about significant segment expenses. We adopted the new requirements in our annual reporting for fiscal 2025 on a retrospective basis (Note 8). Recent Accounting Pronouncements Not Yet Adopted. Income Tax Disclosures: In December 2023, the FASB issued new requirements to disclose annually certain additional detailed income tax information related to the effective tax rate reconciliation and income taxes paid, among other items. We will adopt the new requirements starting in fiscal 2026 on a retrospective basis. Income Statement - Expense Disaggregation Disclosures : In November 2024, the FASB issued new requirements to disclose certain additional expense information on an annual and interim basis, including (among other items) the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization included within each income statement expense caption, as applicable. We will adopt the new requirements starting in fiscal 2028 on a prospective basis.

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Segment Information We are organized on the basis of products and services and have three reportable segments. Our operating segments reflect the way our businesses and management/reporting structure are organized internally and the way our Chief Operating Decision Maker (CODM), who is our CEO, reviews financial information, makes operating decisions and assesses business performance. We also consider, among other items, the way budgets and forecasts are prepared and reviewed and the basis on which executive compensation is determined, as well as the similarities and the level of centralized resource planning within our operating segments, such as the nature of products, the level of shared products, technology and other resources, production processes and customer base. We conduct business primarily through our QCT semiconductor business and our QTL licensing business. QCT develops and supplies integrated circuits and system software with advanced connectivity and high-performance, low-power computing technologies for use in mobile devices; automotive systems for connectivity, digital cockpit and ADAS/AD; and IoT including consumer electronic devices, industrial devices and edge networking products. QTL grants licenses or otherwise provides rights to use portions of our intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products. Our QSI (Qualcomm Strategic Initiatives) reportable s …

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Capital Stock Stock Repurchase Program. During the first quarter of fiscal 2025, we utilized the remaining repurchase authority under the $10.0 billion stock repurchase program announced on October 12, 2021 and we began repurchases under the $15.0 billion stock repurchase program announced on November 6, 2024, which has no expiration date. At September 28, 2025, $7.2 billion remained authorized for repurchase under our stock repurchase program. Shares Outstanding. Shares of common stock outstanding at September 28, 2025 were as follows (in millions): Balance at September 29, 2024 1,113 Issued 17 Repurchased (56) Balance at September 28, 2025 1,074

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Note 8. Acquisitions Alphawave. On December 18, 2025 (the Closing Date), we completed the acquisition of Alphawave IP Group plc (Alphawave) for $2.3 billion, which primarily consisted of $1.8 billion of equity consideration from the issuance of 11 million shares of our common stock, which includes certain securities exchangeable for shares of our common stock (Exchangeable Shares), and $301 million of cash consideration. Alphawave develops high-speed wired connectivity technologies delivering IP, custom silicon and connectivity products. The acquisition is intended to further accelerate, and provide key assets for, our expansion into data centers. In connection with the acquisition, we issued Exchangeable Shares of Aqua ExchangeCo ULC, an indirect, wholly-owned subsidiary of QUALCOMM Incorporated, to certain Alphawave executives in exchange for their outstanding capital stock. The Exchangeable Shares (no par value; unlimited shares authorized; 4 million shares issued and outstanding as of June 28, 2026) are exchangeable for our common stock on a one-for-one basis and are substantially the economic equivalent of our common stock. The issued and outstanding Exchangeable Shares have been presented together with our common stock in our condensed consolidated financial statements. The Exchangeable Shares had an estimated fair value of $746 million, of which $453 million is included within the $2.3 billion purchase price and the remainder is subject to a four-year service requireme …

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Note 5. Commitments and Contingencies Legal and Regulatory Proceedings. ParkerVision, Inc. v. QUALCOMM Incorporated: On May 1, 2014, ParkerVision, Inc. (ParkerVision) filed a complaint against us in the United States District Court for the Middle District of Florida alleging that certain of our products infringed seven ParkerVision patents. ParkerVision subsequently reduced the number of patents asserted to three. The asserted patents are now expired, and injunctive relief is no longer available. ParkerVision continues to seek damages related to the sale of many of our radio frequency (RF) products sold between 2008 and 2018. On March 23, 2022, the district court entered judgment in our favor on all claims and closed the case. ParkerVision appealed to the United States Court of Appeals for the Federal Circuit (Federal Circuit), and on September 6, 2024, the Federal Circuit reversed the judgment of the district court, citing certain substantive and procedural issues, and remanded the case to the district court for further proceedings. Following a claim construction ruling by the district court, the parties agreed to a stipulated judgment of non-infringement with respect to certain of ParkerVisions claims (Receiver Claims). On October 2, 2025, the court entered a final judgment in our favor with respect to the Receiver Claims and severed and stayed ParkerVisions remaining claims (Transmitter Claims), pending appeal of the courts claim construction ruling and resulting determina …

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QCT revenue streams were as follows (in millions): Three Months Ended Nine Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 Handsets (1) $ 5,086 $ 6,328 $ 18,934 $ 20,831 Automotive (2) 1,588 984 4,015 2,904 IoT (internet of things) (3) 1,830 1,681 5,244 4,811 Total QCT revenues $ 8,504 $ 8,993 $ 28,193 $ 28,546 (1) Includes revenues from products sold for use in mobile handsets. (2) Includes revenues from products sold for use in automobiles, including connectivity, digital cockpit and advanced driver assistance systems (ADAS) and automated driving (AD). (3) Primarily includes products sold for use in the following industries and applications: personal AI and compute (including personal computers (PCs), extended reality (XR) and other personal computing devices) and industrial, networking and robotics (including mobile broadband, wireless access points, handhelds, retail, tracking and logistics, and other commercial and home applications).

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Note 7. Fair Value Measurements and Marketable Securities The following table presents our fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at June 28, 2026 (in millions): Level 1 Level 2 Total Assets Cash equivalents $ 1,529 $ 299 $ 1,828 Marketable securities: Corporate bonds and notes 2,249 2,249 Mortgage- and asset-backed securities 557 557 U.S. Treasury securities and government-related securities 32 7 39 Equity securities (1) 926 926 Total marketable securities 958 2,813 3,771 Derivative instruments 54 54 Other investments (2) 1,293 1,293 Total assets measured at fair value $ 3,780 $ 3,166 $ 6,946 Liabilities Derivative instruments $ $ 251 $ 251 Other liabilities (2) 1,289 1,289 Total liabilities measured at fair value $ 1,289 $ 251 $ 1,540 (1) Primarily consists of equity securities in certain QSI investees that have completed initial public offerings, which remain subject to short-term lock-up restrictions on the ability to sell. (2) Other investments and other liabilities included in Level 1 are comprised of our deferred compensation plan assets and liabilities. Long-term Debt. At June 28, 2026, the aggregate fair value of our outstanding fixed-rate notes, based on Level 2 inputs, was approximately $14.0 billion. Marketable Securities. At June 28, 2026 and September 28, 2025, our marketable securities were all classified as current and were primarily comprised of available-for-sale debt securities (the vast majority of which …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 3. Income Taxes In the fourth quarter of fiscal 2025, tax reform legislation included in the One Big Beautiful Bill Act (OBBB) was enacted in the United States. The OBBB included significant corporate tax reforms, including changes to the foreign-derived deduction eligible income (FDDEI) regime and changes allowing domestic research and development (R&D) expenditures to be deducted as incurred beginning in fiscal 2026 (under prior law such expenditures were capitalized and amortized over five years). As a result, we expected to be perpetually subject to corporate alternative minimum tax (CAMT) and established a $5.7 billion valuation allowance on our federal deferred tax assets in fiscal 2025. In the second quarter of fiscal 2026, the U.S. Department of Treasury and the Internal Revenue Service issued Notice 2026-07, which, among other items, allows us to reduce CAMT by certain previously capitalized domestic R&D expenditures. As a result, we no longer expect to be subject to CAMT in the foreseeable future, and therefore, we now expect to realize our existing federal deferred tax assets. Accordingly, we released our valuation allowance on our federal deferred tax assets resulting in a $5.7 billion income tax benefit in the second quarter of fiscal 2026. Changes in future taxable income, tax laws and other factors may change our determination regarding whether we will be able to realize our deferred tax assets. We estimate our annual effective income tax rate to b …

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Income Tax Disclosures: In December 2023, the FASB issued new requirements to disclose annually certain additional detailed income tax information related to the effective tax rate reconciliation and income taxes paid, among other items. We will adopt the new requirements for our annual periods starting in fiscal 2026 on a prospective basis. Income Statement - Expense Disaggregation Disclosures: In November 2024, the FASB issued new requirements to disclose certain additional expense information on an annual and interim basis, including (among other items) the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization included within each income statement expense caption, as applicable. We will adopt the new requirements for our annual periods starting in fiscal 2028 (and interim periods thereafter) on a prospective basis.

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Note 6. Segment Information We are organized on the basis of products and services and have three reportable segments. Our operating segments reflect the way our businesses and management/reporting structure are organized internally and the way our Chief Operating Decision Maker (CODM), who is our CEO, reviews financial information, makes operating decisions and assesses business performance. We also consider, among other items, the way budgets and forecasts are prepared and reviewed and the basis on which executive compensation is determined, as well as the similarities and the level of centralized resource planning within our operating segments, such as the nature of products, the level of shared products, technology and other resources, production processes and customer base. We conduct business primarily through our QCT semiconductor business and our QTL licensing business. QCT develops and supplies integrated circuit platforms and system software with advanced connectivity and high-performance, low-power computing technologies for use in mobile devices; automotive systems for connectivity, digital cockpit and ADAS/AD; and IoT including personal AI and compute devices and industrial, networking and robotics products. QTL grants licenses or otherwise provides rights to use portions of our intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products. Our QSI (Qualcomm Strategic Init …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 4. Capital Stock Stock Repurchase Program. On March 17, 2026, we announced a new $20.0 billion stock repurchase program, which was in addition to the then-remaining repurchase authority of $2.1 billion under the previous program announced in November 2024. The stock repurchase programs have no expiration date. At June 28, 2026, $20.6 billion remained authorized for repurchase under our stock repurchase programs. Shares Outstanding. Shares of common stock outstanding at June 28, 2026 were as follows (in millions): Balance at September 28, 2025 1,074 Issued 25 Repurchased (42) Balance at June 28, 2026 1,057 Earnings Per Common Share. Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share is computed by dividing net income by the combination of the weighted-average number of common shares outstanding and the weighted-average number of dilutive common share equivalents, primarily comprised of shares issuable under our share-based compensation plans, during the reporting period, using the treasury stock method. The following table provides information about the diluted earnings per share calculation (in millions): Three Months Ended Nine Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 Dilutive common share equivalents included in diluted shares 12 7 9 10 Shares of common stock equivalents not included because the effect would be anti-di …

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Modular. On July 28, 2026, we completed the acquisition of Modular Inc (Modular). Modular provides an open, AI-native software platform that enables AI to run efficiently across hardware architectures. The acquisition of Modular is expected to strengthen the software foundation for generative and agentic AI across data center and edge environments. The transaction values Modular at approximately $3.1 billion based on the closing price of Qualcomm stock on the acquisition date, with consideration transferred consisting primarily of 18 million shares issued of our common stock. This included 4 million shares with an estimated fair value of approximately $700 million that were issued to certain executives and are subject to a four-year service requirement post-acquisition, of which a portion will be recognized as compensation expense and the remaining amount included as a component of the purchase price. Due to the timing of the acquisition, it is not practicable to disclose the preliminary allocation of the purchase price to the assets acquired and the liabilities assumed.

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