1) Q2 2026 Financial Highlights
- Revenues of $10.6 billion and non-GAAP EPS of $2.65, at the high end of guidance. - QCT revenues totaled $9.1 billion, with automotive revenues reaching a record $1.3 billion, up 38% YoY. - Licensing business (QTL) revenues were $1.4 billion with an EBT margin of 72%. - Returned $3.7 billion to stockholders, including $2.8 billion in share repurchases.

2) Strategic Focus on AI and Automotive
- Qualcomm is capitalizing on the rise of agentic AI, which is reshaping user experiences across devices. - Automotive segment exceeded $5 billion in annualized revenues, with expectations to surpass $6 billion by fiscal year-end. - The Snapdragon Digital Chassis platform is driving growth, with significant increases in CPU, GPU, and NPU performance for autonomous driving.

3) Challenges in Handset Market
- Handset revenues were impacted by memory supply issues, leading to cautious OEM build plans, particularly in China. - QCT handset revenues are projected to bottom out in Q3 2026, with expectations for recovery in subsequent quarters. - The premium smartphone segment remains resilient, with agentic smartphones expected to drive future demand.

4) Data Center and Custom Silicon Initiatives
- Qualcomm is entering the custom silicon space, with initial shipments expected in December 2026. - The company is focusing on both ASIC and merchant solutions to address diverse needs in the data center market. - Upcoming Investor Day on June 24 will provide further insights into data center strategies and product developments.

5) Guidance and Market Outlook
- For Q3 2026, Qualcomm forecasts revenues between $9.2 billion and $10 billion, with non-GAAP EPS of $2.10 to $2.30. - QTL revenues are expected to decline due to weaker low-tier handset sales, while QCT automotive revenues are anticipated to grow by 50% YoY. - The call did not provide specific details on the competitive landscape in the data center space, which may be addressed in future communications.

Bottom line: Qualcomm's strong performance in automotive and IoT, coupled with strategic investments in AI and custom silicon, positions the company for long-term growth despite short-term challenges in the handset market. The upcoming Investor Day is expected to shed more light on these initiatives and their potential impact on future revenues.