Qualcomm tops estimates on automotive surge, eyes data center opportunity

Shares of Qualcomm Inc (NASDAQ:QCOM, XETRA:QCI) roseate 12.6% connected Thursday greeting aft the San Diego-based chipmaker reported second-quarter fiscal 2026 results that edged past expert expectations, arsenic surging automotive gross and a broadening artificial quality strategy offset weakness successful its handset concern and a cautious near-term outlook.

The San Diego-based chipmaker posted gross of $10.6 cardinal against an estimation of $10.56 billion, portion adjusted net per stock came successful astatine $2.65, up of the $2.55 consensus.

Shares roseate 12.6% connected Thursday morning.

Automotive gross was the standout, climbing 38% year-over-year to $1.33 billion, with the combined automotive and IoT conception rising 20%. IoT gross grew 9% to $1.73 billion, portion the company's handset concern declined 13% to $6.02 cardinal arsenic archetypal instrumentality manufacturers worked down inventories.

Overall QCT gross fell 4% year-over-year to $9.08 billion, with licensing gross from the QTL conception rising 5% to $1.38 billion.

For the 3rd quarter, Qualcomm guided gross of $9.2 cardinal to $10 billion, beneath the $10.26 cardinal analysts had expected, and adjusted EPS of $2.10 to $2.30, besides trailing the $2.43 consensus.

“We are successful a play of profound manufacture translation — the emergence of AI agents is reshaping our roadmap crossed each level we develop,” CEO Cristiano Amon said successful a statement.

Amon besides highlighted the company's introduction into the information center, pointing to a customized silicon engagement with a starring hyperscaler that is connected way for archetypal shipments aboriginal this calendar year. "We are arsenic excited by our introduction into the information center," helium said.

The institution authorized a caller $20 cardinal stock buyback program. In the 2nd quarter, Qualcomm returned $3.7 cardinal to shareholders, including $2.8 cardinal successful repurchases crossed 19 cardinal shares and $945 cardinal successful dividends, oregon $0.89 per share. First-half buybacks totaled $5.4 billion.

Analysts astatine Baird raised their terms people connected Qualcomm to $300 and maintained an Outperform rating, citing agentic AI arsenic a secular maturation operator crossed Qualcomm's compute platforms, including smartphones, PCs, automotive, and information center.

Baird noted that arsenic AI agents progressively trust connected CPUs, Qualcomm is positioned to payment from that request some wrong and extracurricular the information center.

Analysts besides flagged gross diversification arsenic an accelerating trend, noting that automotive present represents astir 13% of full gross and is expected by absorption to exit the twelvemonth astatine a $6 cardinal annualized tally rate.

The steadfast added that Qualcomm's eventual exit from Apple's proviso concatenation could unlock aggregate enlargement arsenic its smartphone concern re-accelerates.