Operating margins have contracted significantly from a 30.5% peak in 2025Q1 to 21.8% in 2026Q2, reflecting persistent pressure on operational efficiency during the current revenue downturn.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 44.49B | 44.28B | 38.96B | 35.82B | 44.2B | 33.57B | 23.53B | 24.27B | 22.73B | 22.29B | 23.55B | 25.28B | 26.49B | 24.87B | 19.12B | 14.96B | 10.99B | 10.42B | 11.14B | 8.87B | 7.53B | 5.67B | 4.88B | 3.97B | 3.04B | 2.68B | 3.2B | 3.94B | 3.35B | 2.1B | 813.9M |
| Revenue Growth % | 5.21% | 13.66% | 8.77% | -18.96% | 31.68% | 42.65% | -3.06% | 6.78% | 1.98% | -5.36% | -6.83% | -4.55% | 6.52% | 30.05% | 27.84% | 36.08% | 5.52% | -6.52% | 25.6% | 17.87% | 32.66% | 16.25% | 22.9% | 30.63% | 13.43% | -16.17% | -18.81% | 17.61% | 59.7% | 157.57% | 110.53% |
| Cost of Goods Sold | 20.11B | 19.74B | 17.06B | 15.87B | 18.64B | 14.26B | 9.26B | 8.6B | 10.24B | 9.79B | 9.75B | 10.38B | 10.69B | 9.82B | 7.1B | 4.88B | 3.52B | 3.18B | 3.41B | 2.68B | 2.18B | 1.65B | 1.48B | 1.43B | 1.14B | 1.04B | 1.51B | 2.49B | 2.33B | 1.52B | 479.1M |
| COGS % of Revenue | - | 44.57% | 43.79% | 44.3% | 42.16% | 42.49% | 39.33% | 35.43% | 45.06% | 43.93% | 41.39% | 41.05% | 40.34% | 39.49% | 37.11% | 32.61% | 32% | 30.54% | 30.64% | 30.22% | 28.99% | 29% | 30.41% | 36.02% | 37.42% | 38.63% | 47.14% | 63.12% | 69.7% | 72.41% | 58.86% |
| Gross Profit | 24.38B | 24.55B | 21.9B | 19.95B | 25.57B | 19.3B | 14.28B | 15.67B | 12.49B | 12.5B | 13.8B | 14.9B | 15.8B | 15.05B | 12.03B | 10.08B | 7.47B | 7.24B | 7.73B | 6.19B | 5.34B | 4.03B | 3.4B | 2.54B | 1.9B | 1.64B | 1.69B | 1.45B | 1.01B | 578.36M | 334.8M |
| Gross Margin % | 54.8% | 55.43% | 56.21% | 55.7% | 57.84% | 57.51% | 60.67% | 64.57% | 54.94% | 56.07% | 58.61% | 58.95% | 59.66% | 60.51% | 62.89% | 67.39% | 68% | 69.46% | 69.36% | 69.78% | 71.01% | 71% | 69.59% | 63.98% | 62.58% | 61.37% | 52.85% | 36.88% | 30.3% | 27.59% | 41.14% |
| Gross Profit Growth % | - | 12.07% | 9.78% | -21.96% | 32.43% | 35.22% | -8.92% | 25.51% | -0.09% | -9.46% | -7.37% | -5.68% | 5.02% | 25.12% | 19.3% | 34.87% | 3.3% | -6.38% | 24.85% | 15.83% | 32.67% | 18.61% | 33.67% | 33.56% | 15.66% | -2.66% | 16.35% | 43.15% | 75.41% | 72.75% | 63.88% |
| Operating Expenses | 13.02B | 12.19B | 11.83B | 12.16B | 9.71B | 9.52B | 8.02B | 8.01B | 11.75B | 9.88B | 7.31B | 9.13B | 8.25B | 7.82B | 6.34B | 5.05B | 4.19B | 5.01B | 4B | 3.31B | 2.65B | 1.64B | 1.27B | 1.23B | 1.23B | 1.64B | 906.99M | 1.05B | 771.81M | 480.9M | 342.2M |
| OpEx % of Revenue | - | 27.53% | 30.37% | 33.96% | 21.96% | 28.35% | 34.09% | 32.99% | 51.67% | 44.35% | 31.04% | 36.1% | 31.15% | 31.43% | 33.17% | 33.79% | 38.13% | 48.09% | 35.88% | 37.28% | 35.26% | 28.94% | 25.96% | 30.99% | 40.43% | 61.12% | 28.37% | 26.59% | 23.05% | 22.94% | 42.04% |
| Selling, General & Admin | 3.44B | 3.11B | 2.76B | 2.48B | 2.57B | 2.34B | 2.07B | 2.19B | 2.99B | 2.66B | 2.38B | 2.34B | 2.29B | 2.52B | 2.32B | 1.95B | 1.64B | 1.56B | 1.72B | 1.48B | 1.12B | 631M | 568M | 534.91M | 508.64M | 367.15M | 342.94M | 425.94M | 410.35M | 236.19M | 123.1M |
| SG&A % of Revenue | - | 7.02% | 7.08% | 6.93% | 5.81% | 6.97% | 8.81% | 9.04% | 13.14% | 11.92% | 10.13% | 9.27% | 8.65% | 10.13% | 12.15% | 13% | 14.94% | 14.94% | 15.41% | 16.66% | 14.83% | 11.12% | 11.64% | 13.47% | 16.73% | 13.7% | 10.73% | 10.82% | 12.26% | 11.27% | 15.12% |
| Research & Development | 9.51B | 9.04B | 8.89B | 8.82B | 8.19B | 7.18B | 5.97B | 5.4B | 5.63B | 5.49B | 5.15B | 5.49B | 5.48B | 4.97B | 3.92B | 3B | 2.55B | 2.44B | 2.28B | 1.83B | 1.54B | 1.01B | 720M | 523.27M | 451.68M | 414.76M | 340.41M | 381.14M | 349.48M | 235.92M | 162.3M |
| R&D % of Revenue | - | 20.42% | 22.82% | 24.62% | 18.54% | 21.38% | 25.39% | 22.24% | 24.74% | 24.61% | 21.87% | 21.72% | 20.68% | 19.98% | 20.47% | 20.02% | 23.19% | 23.43% | 20.47% | 20.62% | 20.44% | 17.82% | 14.75% | 13.18% | 14.86% | 15.48% | 10.65% | 9.68% | 10.44% | 11.25% | 19.94% |
| Other Operating Expenses | 2M | 39M | 179M | 862M | -1.06B | 0 | -28M | 414M | 3.13B | 1.74B | -226M | 1.29B | 484M | 331M | 104M | 114M | 0 | 1.01B | 0 | 0 | 0 | 0 | -21M | 172.17M | 268.61M | 855.84M | 223.64M | 240.01M | 11.98M | 8.79M | 56.8M |
| Operating Income | 11.36B | 12.36B | 10.07B | 7.79B | 15.86B | 9.79B | 6.25B | 7.67B | 621M | 2.58B | 6.5B | 5.78B | 7.55B | 7.23B | 5.68B | 5.03B | 3.28B | 2.23B | 3.73B | 2.88B | 2.69B | 2.39B | 2.13B | 1.31B | 673.27M | 6.93M | 722.64M | 405.14M | 242.66M | 97.46M | -7.4M |
| Operating Margin % | 25.52% | 27.9% | 25.85% | 21.74% | 35.88% | 29.16% | 26.58% | 31.59% | 2.73% | 11.58% | 27.57% | 22.85% | 28.5% | 29.08% | 29.72% | 33.6% | 29.87% | 21.37% | 33.48% | 32.5% | 35.74% | 42.06% | 43.63% | 33% | 22.15% | 0.26% | 22.61% | 10.29% | 7.25% | 4.65% | -0.91% |
| Operating Income Growth % | - | 22.68% | 29.31% | -50.9% | 62.02% | 56.5% | -18.42% | 1134.62% | -75.94% | -60.26% | 12.45% | -23.5% | 4.43% | 27.24% | 13.05% | 53.09% | 47.48% | -40.32% | 29.38% | 7.17% | 12.74% | 12.07% | 62.49% | 94.61% | 9615.27% | -99.04% | 78.37% | 66.95% | 149% | 1416.99% | -136.1% |
| EBITDA | 12.76B | 13.96B | 11.78B | 9.6B | 17.62B | 11.37B | 7.65B | 9.07B | 2.18B | 4.04B | 7.92B | 6.99B | 8.7B | 8.25B | 6.58B | 6.09B | 3.95B | 2.86B | 4.19B | 3.27B | 2.96B | 2.59B | 2.29B | 1.49B | 1.07B | 326.74M | 966.48M | 563.57M | 384.56M | 191.06M | 49.4M |
| EBITDA Margin % | 28.67% | 31.52% | 30.23% | 26.79% | 39.87% | 33.88% | 32.5% | 37.36% | 9.6% | 18.13% | 33.64% | 27.65% | 32.85% | 33.17% | 34.41% | 40.7% | 35.93% | 27.47% | 37.57% | 36.82% | 39.36% | 45.58% | 46.97% | 37.52% | 35.12% | 12.19% | 30.23% | 14.31% | 11.49% | 9.11% | 6.07% |
| EBITDA Growth % | -1.5% | 18.51% | 22.72% | -45.54% | 54.97% | 48.68% | -15.66% | 315.58% | -46.02% | -48.98% | 13.35% | -19.66% | 5.49% | 25.35% | 8.08% | 54.14% | 38.03% | -31.65% | 28.17% | 10.26% | 14.54% | 12.83% | 53.83% | 39.57% | 226.72% | -66.19% | 71.49% | 46.55% | 101.28% | 286.75% | -3.89% |
| D&A (Non-Cash Add-back) | 1.4B | 1.6B | 1.71B | 1.81B | 1.76B | 1.58B | 1.39B | 1.4B | 1.56B | 1.46B | 1.43B | 1.21B | 1.15B | 1.02B | 897M | 1.06B | 666M | 635M | 456M | 383M | 272M | 200M | 163M | 179.69M | 394.26M | 319.81M | 243.84M | 158.43M | 141.89M | 93.6M | 56.8M |
| EBIT | 11.94B | 13.33B | 11.03B | 8.14B | 15.49B | 9.79B | 6.23B | 8.08B | 3.77B | 3.51B | 6.81B | 7.43B | 8.34B | 7.85B | 6.65B | 5.8B | 4.54B | 2.42B | 3.85B | 2.88B | 2.69B | 2.39B | 2.13B | 1.57B | 840M | 6.93M | 782.67M | 405.2M | 242.7M | 97.46M | -7.4M |
| Net Interest Income | -375M | -25M | -22M | -381M | -399M | -476M | -446M | -327M | -157M | 125M | 314M | 423M | 581M | 674M | 519M | 386M | 487M | 503M | 469M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 303M | 639M | 675M | 313M | 91M | 83M | 156M | 300M | 611M | 619M | 611M | 527M | 586M | 697M | 609M | 500M | 530M | 516M | 491M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 678M | 664M | 697M | 694M | 490M | 559M | 602M | 627M | 768M | 494M | 297M | 104M | 5M | 23M | 90M | 114M | 58M | 24M | 22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 347M | 308M | 265M | -345M | -862M | 485M | -536M | -186M | -229M | 439M | 338M | 711M | 1.23B | 964M | 880M | 661M | 751M | -150M | 96M | 743M | 466M | 423M | 184M | -25.09M | -212.14M | -433.24M | 474.17M | -98.5M | -94.1M | 10.98M | 34M |
| Pretax Income | 11.7B | 12.66B | 10.34B | 7.44B | 15B | 10.27B | 5.72B | 7.48B | 513M | 3.02B | 6.83B | 6.49B | 8.78B | 8.19B | 6.56B | 5.69B | 4.03B | 2.08B | 3.83B | 3.63B | 3.16B | 2.81B | 2.31B | 1.29B | 461.13M | -426.31M | 1.2B | 306.69M | 148.67M | 108.43M | 26.6M |
| Pretax Margin % | 26.3% | 28.59% | 26.53% | 20.78% | 33.93% | 30.61% | 24.3% | 30.82% | 2.26% | 13.55% | 29.01% | 25.66% | 33.14% | 32.95% | 34.32% | 38.02% | 36.7% | 19.93% | 34.34% | 40.87% | 41.93% | 49.52% | 47.4% | 32.37% | 15.17% | -15.91% | 37.44% | 7.79% | 4.44% | 5.17% | 3.27% |
| Income Tax | 1.78B | 7.12B | 226M | 104M | 2.01B | 1.23B | 521M | 3.1B | 5.38B | 555M | 1.13B | 1.22B | 1.24B | 1.35B | 1.28B | 1.13B | 787M | 484M | 666M | 323M | 686M | 666M | 588M | 457.71M | 101.45M | 104.5M | 526.59M | 105.81M | 40.14M | 16.5M | 5.6M |
| Effective Tax Rate % | 15.2% | 56.24% | 2.19% | 1.4% | 13.42% | 11.98% | 9.11% | 41.37% | 1048.15% | 18.38% | 16.55% | 18.79% | 14.17% | 16.46% | 19.49% | 19.91% | 19.51% | 23.31% | 17.41% | 8.91% | 21.74% | 23.71% | 25.42% | 35.62% | 22% | -24.51% | 44% | 34.5% | 27% | 15.22% | 21.05% |
| Net Income | 9.92B | 5.54B | 10.14B | 7.23B | 12.94B | 9.04B | 5.2B | 4.39B | -4.96B | 2.47B | 5.71B | 5.27B | 7.97B | 6.85B | 6.11B | 4.26B | 3.25B | 1.59B | 3.16B | 3.3B | 2.47B | 2.14B | 1.72B | 827.44M | 359.68M | -548.74M | 670.21M | 200.88M | 108.53M | 91.93M | 21M |
| Net Margin % | 22.31% | 12.51% | 26.03% | 20.19% | 29.27% | 26.94% | 22.09% | 18.07% | -21.84% | 11.06% | 24.22% | 20.85% | 30.08% | 27.56% | 31.95% | 28.48% | 29.54% | 15.28% | 28.36% | 37.23% | 32.82% | 37.78% | 35.25% | 20.84% | 11.83% | -20.48% | 20.97% | 5.1% | 3.24% | 4.39% | 2.58% |
| Net Income Growth % | -10.13% | -45.37% | 40.24% | -44.09% | 43.05% | 73.97% | 18.51% | 188.36% | -301.3% | -56.77% | 8.23% | -33.84% | 16.26% | 12.18% | 43.4% | 31.2% | 103.96% | -49.62% | -4.33% | 33.72% | 15.26% | 24.59% | 107.87% | 130.05% | 165.55% | -181.88% | 233.64% | 85.09% | 18.05% | 337.78% | -30.46% |
| Net Income (Continuing) | 9.92B | 5.54B | 10.11B | 7.34B | 12.99B | 9.04B | 5.2B | 4.39B | -4.96B | 2.44B | 5.7B | 5.27B | 7.53B | 6.84B | 5.28B | 4.55B | 3.52B | 1.79B | 3.16B | 3.3B | 2.47B | 2.14B | 1.73B | 1.03B | 525M | -530.81M | 670.21M | 200.9M | 108.5M | 91.93M | 21M |
| Discontinued Operations | 0 | 0 | 0 | -107M | -50M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 430M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -10M | -7M | -3M | -1M | 22M | 21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 50K | 44.54M | 5.89M | 46.64M | 711.15M | 698.53M | 660M | 0 |
| EPS (Diluted) | 9.26 | 5.01 | 8.98 | 6.42 | 11.38 | 7.87 | 4.52 | 3.60 | -3.32 | 1.64 | 3.81 | 3.22 | 4.65 | 3.91 | 3.51 | 2.52 | 1.96 | 0.95 | 1.90 | 1.95 | 1.44 | 1.26 | 1.03 | 0.51 | 0.22 | -0.36 | 0.43 | 0.16 | 0.09 | 0.08 | 0.02 |
| EPS Growth % | -4.99% | -44.21% | 39.88% | -43.59% | 44.6% | 74.11% | 25.56% | 208.43% | -302.44% | -56.96% | 18.32% | -30.75% | 18.93% | 11.4% | 39.29% | 28.57% | 106.32% | -50% | -2.56% | 35.42% | 14.29% | 22.33% | 101.96% | 131.82% | 161.11% | -183.72% | 168.75% | 75.25% | 14.99% | 297% | -42.86% |
| EPS (Basic) | - | 5.06 | 9.09 | 6.47 | 11.52 | 8.00 | 4.58 | 3.62 | -3.32 | 1.66 | 3.84 | 3.26 | 4.73 | 3.99 | 3.59 | 2.57 | 1.98 | 0.96 | 1.94 | 1.99 | 1.49 | 1.31 | 1.06 | 0.52 | 0.24 | -0.36 | 0.47 | 0.17 | 0.10 | 0.08 | 0.02 |
| Diluted Shares Outstanding | 1.07B | 1.1B | 1.13B | 1.13B | 1.14B | 1.15B | 1.15B | 1.22B | 1.46B | 1.49B | 1.5B | 1.64B | 1.71B | 1.75B | 1.74B | 1.69B | 1.66B | 1.67B | 1.66B | 1.69B | 1.71B | 1.69B | 1.68B | 1.62B | 1.62B | 1.51B | 1.6B | 1.3B | 1.18B | 1.16B | 1.05B |
| Basic Shares Outstanding | 1.07B | 1.1B | 1.12B | 1.12B | 1.12B | 1.13B | 1.14B | 1.21B | 1.46B | 1.48B | 1.48B | 1.62B | 1.68B | 1.72B | 1.7B | 1.66B | 1.64B | 1.66B | 1.63B | 1.66B | 1.66B | 1.64B | 1.62B | 1.59B | 1.54B | 1.51B | 1.43B | 1.19B | 1.11B | 1.16B | 1.05B |
| Dividend Payout Ratio | - | 68.67% | 36.35% | 47.87% | 24.83% | 33.26% | 55.44% | 67.67% | - | 131.87% | 52.41% | 54.64% | 32.46% | 29.99% | 25.91% | 31.6% | 36.25% | 68.66% | 31.08% | 26.1% | 28.26% | 24.45% | 17.91% | 16.29% | - | - | - | - | - | - | - |
Geopolitical handset market exposure
According to the most recent quarterly filings, Qualcomm's revenue growth has decelerated into negative territory at -3.5% in 2026Q2, marking a significant departure from the double-digit expansion observed throughout 2025, which suggests that the global handset replacement cycle is currently exerting downward pressure on top-line performance.
The shift from 17.5% growth in 2025Q1 to a contraction in the most recent period highlights the company's high sensitivity to consumer discretionary spending. Investors should monitor whether the recent pivot into PC-compute platforms can offset the volatility inherent in the mobile-centric revenue base.
As reported in financial statements, Qualcomm has maintained gross margins within a tight band of 53.8% to 56.6% over the last ten quarters, demonstrating a resilient pricing power that persists despite the broader cyclical downturns impacting the semiconductor industry's overall hardware sales volume.
This structural stability appears to be supported by the high-margin royalty stream from the QTL segment, which acts as a buffer against foundry cost fluctuations. However, the slight compression to 53.8% in 2026Q2 warrants further investigation into whether product mix shifts toward lower-margin IoT are beginning to dilute the core profitability profile.
Based on the provided income statement data, operating margins have contracted from a peak of 30.5% in 2025Q1 to 21.8% in 2026Q2, indicating that the company is currently struggling to achieve the same level of operating efficiency as revenue growth stalls and fixed costs remain elevated.
The persistence of R&D spending at approximately $2.5 billion per quarter, even as revenue declines, suggests a management commitment to long-term innovation at the expense of short-term operating leverage. This strategy may be necessary for the PC and automotive pivot, but it leaves the bottom line vulnerable to further top-line weakness.
Analysis of the reported figures reveals significant volatility in net income, highlighted by a $3.1 billion loss in 2025Q4 followed by a $7.4 billion profit in 2026Q2, which suggests that non-operating items and accounting true-ups are heavily distorting the underlying run-rate profitability of the business.
The massive spike in 2026Q2 net income, coupled with $1.7 billion in stock-based compensation, indicates that investors should focus on operating income rather than GAAP net income to gauge true performance. The lack of consistent earnings quality makes it difficult to assess the company's normalized cash-generating capability.
While the company's licensing regime is a core moat, the recent trend of domestic chip self-sufficiency in China, as noted in industry context, poses a potential long-term threat to the enforceability of royalty streams that have historically underpinned the company's superior net margin profile.
Short-sellers may focus on the risk that handset OEMs increasingly bypass Qualcomm's proprietary modem technology, potentially leading to a permanent impairment of the QTL segment. If the licensing revenue becomes decoupled from the silicon volume, the current valuation premium may face significant downward revision.
Quick answers to the most common questions about buying QCOM stock.
For fiscal year 2025, QUALCOMM Incorporated (QCOM) reported total revenue of $44.28B. This represents a 5341.0% increase compared to $813.9M in 1996.
QUALCOMM Incorporated (QCOM) is profitable, generating $5.54B in net income for the fiscal year ending 2025 with a net profit margin of 12.5%.
QUALCOMM Incorporated (QCOM) reported an operating income of $12.36B, resulting in an operating profit margin of 27.9%. This margin reflects the operational efficiency of the business before interest and taxes.
QUALCOMM Incorporated (QCOM) generated $24.55B in gross profit for the year, representing a gross profit margin of 55.4%. This demonstrates the company's core pricing power and production efficiency.