QUALCOMM Incorporated

Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm first quarter fiscal 2026 earnings conference call. At this time, all participants are in listen-only mode. Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm first quarter fiscal 2026 earnings conference call. At this time, all participants are in listen-only mode. Later, we'll conduct a question and answer session. If you'd like to ask a question during this time, press star, then the number one on your telephone keypad. To throw your question, press star, then the number two. If you're using a speakerphone, please pick up your handset before pressing the numbers. Please limit your questions to one question and one follow-up. As a reminder, this conference is being recorded February 4th, 2026. The playback number for today's call is 877-660-6853. International callers, please dial 201-612-7415. The playback reservation number is 137-58-127. I would now like to turn the call over to Mauricio Lopez-Odoin, Vice President of Investor Relations. Mauricio Lopez-Odoin, please go ahead.

Mauricio Lopez- Thank you, and good afternoon, everyone. Today's call will include prepared remarks by Cristiano Mon and Akash Palkawala. In addition, Alex Rogers will join the question and answer session. You can access our earnings release and a slide presentation that accompanied this call on our investor relations website. In addition, this call has been webcast on Qualcomm.com, and a replay will be available on our website later today. During the call today, we will use non-GAAP financial measures as defined in Regulation G, and you can find the related reconciliations to GAAP on our website. We will also make forward-looking statements, including projections and estimates of future events, business or industry trends, or business or financial results. Actual events or results could differ materially from those projected in our forward-looking statements. Please refer to our SEC filings, including our most recent 10-K, which contain important factors that could cause actual results to differ materially from the forward-looking statements. And now the comments from Qualcomm's President and Chief Executive Officer, Christian Omon.

Thank you, Mauricio, and good afternoon, everyone. Thanks for joining us today. In fiscal Q1, we delivered record revenues of $12.3 billion in non-GAAP earnings per share of $3.50. Within QCT, record revenues of $10.6 billion were driven by strength in flagship handsets. We also saw another quarter of record revenues in automotive and positive momentum in IoT across industrial edge networking applications and smart glasses. Licensing business revenues were $1.6 billion. While global consumer demand for handsets, especially premium and high-tier, exceeded our expectations, with healthy sell-through observed to fiscal Q1 in the first few weeks of 2026, in the coming quarters, the handset industry will be constrained by the availability and pricing of memory, particularly the RAM. As memory suppliers redirect manufacturing capacity to HBM to meet AI data center demand, the resulting industry-wide memory shortage and price increases are likely to define the overall scale of the handset industry through the fiscal year. Given the current environment, several handsets OEMs, especially in China, are taking a cautious approach in reducing their chipset inventory. This is reflected in our guidance for the upcoming quarter. We will continue to work closely with our customers and suppliers as the situation evolves. Akash will share more details on the memory impact in his prepared remarks. And now, some key highlights from the business. We are pleased with the continued expansion of the premium and high-tier smartphone segments and traction of of Snapdragon platforms, including broad OEM adoption for dual flagship product strategy. For Samsung's upcoming family of premium tier devices, we expect approximately 75% share consistent with prior expectations. It's important to note that during the quarter, ByteDance launched the first agentic AI smartphone powered by the Snapdragon 8 Elite. This is a significant milestone in the transition toward AI-native smartphones and the precursor to the agentic experiences shaping the future of mobile. With the development of agents and AI becoming the new UI, intelligent wearables are evolving into personal AI companions and quickly emerging as the next mobile computing category. Our early investments in this area, including powerful and power-efficient chipsets, advanced connectivity, including micropower Wi-Fi, as well as ambient sensing and perception technologies, position Snapdragon XR, Wear, and Sound as the platforms of choice for the industry. We're pleased to be working with seven of the nine largest cloud companies globally, and more than 40 personal AI devices are in production or development. In PCs, we introduced the Snapdragon X2 Plus, an expansion of our second-generation platforms purpose-built for the enterprise and commercial segment. The X2 Plus is powered by the third-generation Qualcomm Orion CPU, which delivers up to 35% faster single-core performance and up to 3.5 times faster performance multi-core performance compared to the competition in previous generations. Our Hexagon NPU provides up to 5.7 times and 3.4 times faster inferencing versus competitors NPU and GPU, respectively. 18 Snapdragon Power PCs debuted at CES from ASUS, HP, Lenovo, and Microsoft. The ASUS ZenBook A16 was one of the standouts, featuring the Snapdragon X2 Elite Extreme, and is the fastest Snapdragon Power laptop to date. It features our 18-core, third-generation Orion CPU, an 80-tops Hexagon NPU for AI workloads, and an Adreno GPU delivering up to a 2.3 times improvement in performance per watt versus the prior generations. X2 Elite Extreme enables desktop-class performance, advanced graphics, and more than 21 hours of battery life in an ultralight 16-inch form factor. We remain on track to commercialize 150 Snapdragon X-Power PCs this year. Demand for our Snapdragon digital chassis solutions remains incredibly strong, and we announced several collaborations with top automakers OEMs, and service providers during the quarter. We signed a letter of intent for a long-term supply agreement with Volkswagen Group, which spans many brands, including Audi and Porsche. Under this intended agreement, we would provide advanced infotainment and connectivity capabilities powered by our digital chassis across multiple vehicle segments, price tiers, and markets. We would also serve as the group's primary technology provider for its software-defined vehicle architecture developed through its joint venture with Rivian Automotive. In addition, we're collaborating with the group's Automated Driving Alliance formed by Cariad and Bosch to accelerate development of highly automated driving systems. We're very proud that the newly launched RAV4, Toyota's top-selling vehicle globally and one of the best-selling cars worldwide, It's powered by our Snapdragon Cockpit platform, delivering premium AI-enabled in-vehicle experiences. We also announced new and expanded collaborations with Hyundai Mobis, Leap Motor, Lee Auto, Zeker, Great Wall Motors, NIO, and Cherry, bringing our total design win for Snapdragon Elite platforms to 10 programs. In industrial IoT, we continue to expand our portfolio of advanced computing, connectivity, and AI solutions for an increasing number of verticals. With the recent acquisition of Algentics, we augmented our DragonWing Vision portfolio and Qualcomm Insight platform with its AI-based low-power image signal processing solution. At CES, we also introduced two new DragonWing processors delivering on-device intelligence for security-focused drones, smart cameras, and industrial vision, AI TVs, media hubs, and video collaboration systems. Additionally, the launch of our new DragonWing IQX series marked our entry into the industrial PC space with best-in-class compute performance and efficient edge AI engineered for PLCs, advanced HMIs, edge controls, and panel and box PCs. This quarter, we formally announced our expansion into advanced robotics and introduced a full suite of robotics technologies and solutions, including the Dragon Wing IQ10 series. Our general purpose robotics architecture supports advanced perception and motion planning using models such as VLAs and VLMs, allowing robots to perceive, reason, adapt, and act in real-world environments. As part of a complete hardware-to-software stack, IQ10 is designed to accelerate commercialization of household, industrial, and humanoid robots. It combines heterogeneous edge compute, safety-grade SOCs, and end-to-end AI. In a short period of time, we have engaged with AdvanTech, AppLux, AutoCore, Booster, Figure, KUKA Robotics, Robotech AI, and VinMotion to help define the compute architecture for their robotics and humanoid platforms. The physical AI in robotics space is experiencing rapid growth driven by advances in edge AI and sensor fusion, and Qualcomm is one of the best positioned companies today. to enable this next frontier of AI. We will do this by leveraging our strengths in high-performance, power-efficient computing, connectivity, and edge intelligence, as well as our experience in ADAS and autonomy, industrial and safety-grade silicon, and perception and sensing technologies. Many of the drivers of our leadership in automotive are applicable to advanced robotics. Finally, We continue to develop our data center solutions and engage with leading hyperscalers, cloud service providers, sovereign AI projects, and other global partners. We remain encouraged by the positive feedback on our CPU and innovative AI processing and memory architecture for next generation inferencing data centers. Additionally, the recent developments in the industry validate Qualcomm's view of the importance of specialized and power-efficient AI platforms as inferencing becomes the key driver of data center growth. In fiscal Q1, we completed the AlphaWave semi-acquisition, adding high-speed wire connectivity technologies to further strengthen our platforms. We also acquired Ventana Microsystems, reinforcing our leadership and commitment to expanding the RISC-V standard and ecosystem, and development of our high-performance RISC-V CPU for data center workloads. We look forward to providing more information, including an update on our roadmap, at our next investor event. We'll also share our progress in robotics, automotive, and next-generation autonomy, industrial IoT, and 6G. I will now turn the call to Waqash.