QUALCOMM Incorporated (QCOM) FY2025 10-K and Q3 FY2026 10-Q Summary

Business

From the fiscal 2025 Form 10-K, accession 0000804328-25-000085.

Qualcomm incorporated in California in 1985 and reincorporated in Delaware in 1991. It operates on a 52-53 week fiscal year ending on the last Sunday in September; fiscal 2025 was a 52-week year, fiscal 2024 a 53-week year, and fiscal 2026 will be 52 weeks.

The company describes itself as a global technology company commercializing foundational technologies, on-device artificial intelligence, high-performance and low-power computing, and advanced wireless connectivity. It earns money two ways: selling integrated circuit products (the Snapdragon and Qualcomm Dragonwing families), and licensing its intellectual property, principally cellular standard-essential patents covering 3G, 4G and 5G.

Reportable segments (three):

• QCT (Qualcomm CDMA Technologies), the semiconductor business. Develops and supplies integrated circuit platforms and system software for mobile devices; automotive systems (connectivity, digital cockpit, and advanced driver assistance and automated driving, or ADAS/AD); and IoT (consumer electronics including PCs and extended reality, edge networking, and industrial). QCT reports revenue in three streams: handsets, automotive and IoT. Beyond the core system-on-chip, QCT sells RF front-end (RFFE) components, RF transceivers, power management, audio codecs and wireless connectivity chips (Wi-Fi, Bluetooth, precise positioning), plus networking silicon (Wi-Fi, Ethernet, passive optical network chips, access points, gateways).
• QTL (Qualcomm Technology Licensing), the licensing business. Grants rights to portions of the patent portfolio, including patents essential to and/or useful for LTE and OFDMA-based 5G products. Revenue is predominantly per-unit royalties, generally a percentage of the licensee's wholesale selling price of the complete device, net of permissible deductions, with certain products subject to per-unit minimums and/or caps. The vast majority of QTL revenue comes from licensees' sales of OFDMA-based devices.
• QSI (Qualcomm Strategic Initiatives), strategic investments, primarily through Qualcomm Ventures, mostly in early-stage companies across 5G, AI, automotive, consumer, enterprise, cloud, IoT and XR. Holdings are mainly non-marketable equity, with some marketable equity and convertible debt. Qualcomm generally intends to pursue exits.

Nonreportable segments include QGOV (Qualcomm Government Technologies), which sells development services and products to U.S. government agencies and their contractors, and the Data Center business (formerly the cloud computing processing initiative), which is developing next-generation data center solutions.

Corporate structure. Substantially all products, services and R&D functions sit in Qualcomm Technologies, Inc. (QTI) and its subsidiaries; QTL is operated by QUALCOMM Incorporated, which owns the vast majority of the patent portfolio. Neither QTI nor its subsidiaries has authority to grant licenses under patents owned by the parent, the structure that keeps chip sales and patent licensing legally separate.

Manufacturing. QCT is primarily fabless: it does not own foundries and relies on third parties for manufacture, assembly and most testing. Primary foundry suppliers are Taiwan Semiconductor Manufacturing Company, Samsung Electronics and Global Foundries; primary assembly and test suppliers are Advanced Semiconductor Engineering, Amkor Technology, Siliconware Precision Industries and STATSChipPAC, the majority located in Asia-Pacific. The exception is certain RFFE modules and RF filter products, which Qualcomm manufactures internally, front-end wafer fabrication in Germany and Singapore, back-end assembly, packaging and test in China and Singapore.

Customer and geographic concentration. In fiscal 2025, revenues from Apple, Samsung and Xiaomi each comprised 10% or more of consolidated revenues; the three individually-disclosed customers/licensees represented 21%, 20% and 13% of total revenues (versus 22%, 19% and 12% in fiscal 2024). By customer headquarters, China (including Hong Kong) accounted for $20.3 billion, or 46% of fiscal 2025 revenues, the United States $10.5 billion (24%), South Korea $9.5 billion (21%) and other foreign $3.9 billion (9%).

Workforce. Approximately 52,000 full-time, part-time and temporary workers at September 28, 2025, across more than 200 locations in 38 countries, with the substantial majority in engineering or technical roles. Voluntary turnover in fiscal 2025 was approximately 6%.

Industry backdrop as management frames it. Consumer smartphone demand for calendar 2025 was expected to be approximately flat versus 2024, including mid single-digit percentage growth in 5G handsets, so growth has to come from content per device and from adjacencies. Management points to on-device generative AI, to automotive (citing TechInsights estimates that 68% of new vehicles produced in 2030 will have embedded cellular connectivity and 48% will have 5G, versus 21% in 2025; and that Level 2-or-higher autonomy will rise from 24% of new light-duty vehicles sold in 2025 to 52% in 2030), and to IoT across consumer, edge networking and industrial applications.

Risk factors

From the fiscal 2025 Form 10-K, accession 0000804328-25-000085.

The substantive risks, condensed:

Customer concentration and vertical integration. A small number of customers and licensees produce a significant portion of revenues, particularly through premium-tier handsets. Several of the largest, Apple, Samsung and Xiaomi are named, develop their own integrated circuit products. Apple purchases thin modem (MDM) products, which carry lower revenue and margin contribution than integrated modem-plus-application-processor products, and management expects Apple will increasingly use its own modems, which "will have a significant negative impact on our QCT revenues, results of operations and cash flows." Chinese OEMs may likewise substitute in-house or competitors' silicon, including under Chinese government policy prioritizing semiconductor self-sufficiency.

China concentration and U.S./China tensions. Qualcomm derives a significant share of revenues from Chinese OEMs and from non-Chinese OEMs selling into China, and sources certain critical integrated circuit products from Chinese suppliers. Tariffs, export bans and restricted-entity listings on either side could limit or prevent business with these customers and suppliers. As a concrete precedent, in May 2024 the U.S. Department of Commerce revoked the export license under which Qualcomm sold 4G and certain other products to Huawei; the company does not expect further product revenues from Huawei. Chinese capital-control policies can also affect the timing of payments received.

Supply and manufacturing. The fabless model concentrates dependence on a limited number of third-party suppliers, fewer still at leading process nodes, and mostly located in Asia. Risks include capacity allocation away from Qualcomm, raw-material shortages, yield and quality failures, qualification cost and delay when changing suppliers, natural disasters, geopolitical conflict, and cyber-attacks on suppliers' systems. Management states it expects leading process technology nodes to continue driving product cost increases from key wafer suppliers, which may compress margins. Because orders are placed on forecasts with lengthening lead times and are only partially covered by customer commitments, over-forecasting produces excess or obsolete inventory charges, and customers who build inventory in one period buy less in the next. Separately, Qualcomm's own RFFE and RF filter plants carry a higher fixed-cost burden than a fabless model, plus environmental, climate and natural-disaster exposure.

Licensing-specific risks. Licensing carries a materially higher margin than the chip business, so any reduction in licensing revenue has a disproportionate effect on cash available for R&D. Key patent license agreements run for specified terms and must be renewed, modified or replaced; delays defer revenue recognition, and terms imposed through arbitration or litigation may be worse than existing ones. Some OEMs pursue strategies to avoid or reduce royalties, litigation over infringement, patent exhaustion, invalidity or FRAND compliance; contrary contract interpretations; appeals to governments; collective action through standards bodies; lobbying to cut royalty rates or the royalty base; and attempts to shift the royalty obligation to suppliers. Certain licensees have disputed, underreported, underpaid or not reported royalties owed.

Changes to licensing practices. Governmental investigations and legal proceedings have challenged Qualcomm's licensing practices, and management believes some are intended to reduce royalties. Being forced to cut royalty rates, to license at the chipset rather than device level, or to license chipset manufacturers and component suppliers would each reduce revenue and earnings absent offsetting volume, and would add transaction cost and revenue-recognition delay. Being required to sell chipsets to unlicensed OEMs would expose the licensing program to patent-exhaustion defenses.

Standard-essential patent policy. Some implementers and third parties advocate interpretations and SDO policy changes that would cap aggregate royalty rates, apportion them by patent count, remove injunctions as a remedy for standard-essential patent infringement, or narrow the royalty base. Adoption of these by standards bodies, courts or governments, including in litigation Qualcomm is not party to, would harm the licensing model.

New initiatives. Growth depends in part on extending into areas beyond handsets, automotive, IoT and data center. These investments may fail to generate operating income: patents may not issue, technologies may not enter standards, the markets may not develop as expected, competitors may be faster or cheaper. Automotive specifically involves long design-in cycles, long product lives and stringent qualification and safety requirements.

Acquisitions and strategic transactions. Qualcomm routinely acquires businesses, patents and technology and takes minority stakes in private, early-stage companies. Benefits depend on integration, retaining key employees, consolidating R&D, merging systems and channels, and may not be realized. Many deals require U.S. and/or foreign regulatory approval; strained U.S./China relations may impair the ability to close transactions requiring Chinese approval; and completed acquisitions can be reviewed or challenged after the fact, potentially forcing divestiture. Impairments on strategic investments have been recorded before and may recur.

Regulatory, legal and other. Adverse rulings in governmental investigations or other proceedings; cybersecurity breaches or misappropriation of technology and IP; inability to attract or retain qualified employees; dependence on customers' and licensees' sales of 5G and other cellular products; intense competition amid rapid technological change and declining average selling prices; product defects and security vulnerabilities; expense and limits of IP enforcement, third-party infringement claims, and open source software use; the highly cyclical semiconductor industry and macroeconomic downturns; geopolitical conflicts, natural disasters and health crises; compliance with new or amended laws and regulations; risks associated with the company's debt; and tax liabilities.

Management's discussion and analysis, fiscal 2025

From the fiscal 2025 Form 10-K, accession 0000804328-25-000085.

The headline tension of fiscal 2025: revenues rose 14% and net income fell 45%, and the entire gap is tax. Revenues were $44.3 billion versus $39.0 billion in fiscal 2024. Net income was $5.5 billion versus $10.1 billion. In the fourth quarter of fiscal 2025 Qualcomm recorded a non-cash charge of $5.7 billion to income tax expense to establish a valuation allowance against its federal deferred tax assets.

Revenue mix. Equipment and services revenues were $37,869 million (up $5,078 million); licensing revenues were $6,415 million (up $244 million), of which $143 million came from settlement of a licensing dispute in the second quarter of fiscal 2025 that was not allocated to segment results.

Costs. Cost of revenues was $19,738 million and gross margin was 55%, down from 56%, because licensing, the higher-margin stream, shrank as a proportion of total revenues. Research and development was $9,042 million (20% of revenues, versus 23% in fiscal 2024); the $149 million increase was driven by a $118 million rise in share-based compensation, with underlying technology development costs approximately flat as $314 million in higher non-recurring engineering cost reimbursements offset higher employee costs. Selling, general and administrative was $3,110 million, up $351 million on $231 million more sales and marketing and $70 million more employee-related expense. Other expenses of $39 million were restructuring and restructuring-related charges (fiscal 2024's $179 million included $107 million of restructuring, substantially all severance, and a $75 million securities class action settlement). Management expects share-based compensation expense to increase from here, because it replaced the annual cash incentive awards for fiscal 2026 and 2027 with a two-year equity award for the broader non-executive leadership team, an approach it describes as designed to retain the team to execute the long-term diversification strategy and to align its compensation with stockholders.

Tax, the OBBB valuation allowance. On July 4, 2025 the One Big Beautiful Bill Act was enacted. It permanently reinstated deducting domestic R&D expenditures as incurred beginning in fiscal 2026 (previously capitalized and amortized over five years), renamed foreign-derived intangible income (FDII) as foreign-derived deduction eligible income (FDDEI), held the FDDEI effective rate at 13% through fiscal 2026 and set it permanently at 14% from fiscal 2027 (versus 16% under prior law). Because Qualcomm concluded it would perpetually be subject to the 15% corporate alternative minimum tax (CAMT) on adjusted financial statement income, it no longer expected to realize substantially all of its existing federal deferred tax assets and recorded the $5.7 billion valuation allowance. Income tax expense for fiscal 2025 was $7,122 million and the effective rate 56%, against $226 million and 2% in fiscal 2024. Management noted at the time that an assumed one-percentage-point increase to the annual effective tax rate would add $127 million of income tax expense.

Segments.

• QCT: revenues $38,367 million (up $5,171 million, 16%), EBT $11,670 million, EBT margin 30% (up one point). Handsets $27,793 million (up $2,930 million) on $2.5 billion of higher revenue per chipset from higher average selling prices and favorable mix plus $423 million of higher shipments to certain major OEMs, both benefiting from premium-tier Snapdragon demand in Android devices. IoT $6,617 million (up $1,194 million) on $1.5 billion of higher shipments across edge networking, consumer and industrial, partly offset by unfavorable mix. Automotive $3,957 million (up $1,047 million) on shipments from new vehicle launches with Snapdragon digital cockpit products. QCT gross margin was approximately flat, with higher product costs offset by higher average selling prices.
• QTL: licensing revenues $5,582 million and EBT $4,043 million, both approximately flat, with EBT margin 72%. In the second quarter of fiscal 2025 Qualcomm executed final agreements for new long-term licenses with two key Chinese OEMs whose initial terms had expired, and entered comprehensive 4G and 5G license agreements with Transsion, dismissing all outstanding litigation between the parties. Beginning in that same quarter, QTL revenues no longer included royalties from Huawei, whose license agreement expired.
• QSI: EBT $180 million versus $104 million, driven by higher net gains on marketable securities from initial public offerings of certain equity investments, partly offset by lower gains from observable price changes on non-marketable investments.

Liquidity. Operating cash flow was $14,012 million in fiscal 2025 versus $12,202 million. Cash, cash equivalents and marketable securities (including restricted cash) fell $822 million to $12,478 million, held down by $8.8 billion of share repurchases, $3.8 billion of dividends, $1.4 billion repayment of notes maturing in May 2025, $1.2 billion of capital expenditures, $1.1 billion of tax withholdings on vesting share-based awards and $743 million of cash for acquisitions and other investments; partly offset by operating cash flow, $1.5 billion of new notes issued in May 2025 and $404 million of stock issuance proceeds. The balance included $2,323 million of restricted cash set aside for the then-pending Alphawave acquisition, announced June 9, 2025 at an implied enterprise value of approximately $2.4 billion as of the announcement date, expected to complete during the first quarter of calendar 2026, with the 10-K cautioning that the accounting purchase price ultimately recorded could differ significantly from that amount depending on Qualcomm's share price and how many Alphawave holders elected stock consideration. Repurchases in fiscal 2025 totalled 56 million shares at an average $155.43 for $8,791 million, with dividends of $3.48 per share totalling $3,805 million; $7.2 billion remained authorized at year end. Debt was $14,811 million, including $15.1 billion of principal fixed-rate notes maturing between 2027 and 2053; no commercial paper was outstanding and the $4.0 billion revolving credit facility (expiring August 8, 2029) was undrawn. Purchase obligations, mostly supplier commitments including multi-year capacity commitments, totalled $15.1 billion, of which $10.5 billion was expected to be paid within twelve months.

Current quarter, third quarter of fiscal 2026 (13 weeks ended June 28, 2026)

From the Form 10-Q, accession 0000804328-26-000086.

Results. Revenues were $9,947 million, down 4% from $10,365 million a year earlier; net income was $2.0 billion, down 25%. Equipment and services revenues were $8,475 million (down $418 million) and licensing revenues $1,472 million (flat). Cost of revenues was $4,670 million and gross margin 53%, down from 56%, on lower QCT gross margin. Research and development rose $381 million to $2,607 million, 26% of revenues versus 21%, on $244 million of higher technology development costs (largely lower non-recurring engineering cost reimbursements) and $101 million more share-based compensation. Selling, general and administrative rose $205 million to $976 million (10% of revenues versus 7%). Other expense of $68 million was restructuring and restructuring-related charges, substantially all severance. Interest expense was $178 million. Investment and other income, net was $1,014 million, up $656 million, driven by $726 million of net gains on marketable securities from initial public offerings of certain QSI equity investments. The effective tax rate was 19%.

Segments in the quarter.

• QCT revenues $8,504 million, down 5%, with EBT of $2,192 million and EBT margin of 26%, down four points. Handsets fell to $5,086 million from $6,328 million, driven by lower chipset shipments to certain major OEMs as customers adjusted build plans to reduce inventory in response to memory supply constraints and related price increases. Automotive rose to $1,588 million from $984 million, on a $381 million increase in revenue per unit from favorable mix and higher average selling prices plus $223 million of higher shipments from new vehicle launches with Snapdragon digital cockpit and ADAS/AD products. IoT rose to $1,830 million from $1,681 million on higher revenue per unit from favorable mix. The EBT margin decline came from lower gross margin, driven by higher product cost and partly offset by higher average selling prices, and from lower revenues.
• QTL licensing revenues $1,278 million, down $40 million, with EBT of $881 million and EBT margin of 69%, down two points. A $67 million decrease in estimated sales of cellular products and $25 million less in royalties recognized on devices sold in prior periods outweighed a $59 million increase in revenue per unit from favorable mix.
• QSI EBT $768 million versus $149 million, on higher net gains on marketable securities from IPOs of certain equity investments.
• Nonreportable segments contributed $165 million of revenue versus $54 million, and an EBT loss of $214 million versus $10 million, the Data Center business, which now carries Alphawave, is being funded ahead of revenue.

Nine months ended June 28, 2026. Revenues were $32,798 million versus $33,013 million. Equipment and services revenues were $28,002 million and licensing $4,796 million. Gross margin was 54% versus 55%. R&D was $7,523 million (up $851 million) and SG&A $2,738 million (up $538 million, including $91 million more acquisition-related expense). QCT revenues were $28,193 million (handsets $18,934 million, automotive $4,015 million, IoT $5,244 million) with EBT of $7,959 million; QTL revenues were $4,252 million, up $80 million, with EBT of $3,105 million. Income before income taxes was $8,241 million versus $9,692 million.

Tax, the valuation allowance released. In the second quarter of fiscal 2026, Treasury and the IRS issued Notice 2026-07, which among other things allows Qualcomm to reduce CAMT by certain previously capitalized domestic R&D expenditures. The company no longer expects to be subject to CAMT in the foreseeable future, now expects to realize its existing federal deferred tax assets, and released the valuation allowance, a $5,724 million income tax benefit recorded in that quarter. For the nine months, the income tax line is therefore a benefit of $4,136 million and the effective rate negative 50%; management estimates a 40% benefit as the annual effective rate for fiscal 2026. Unrecognized tax benefits were $3.0 billion at June 28, 2026 versus $2.7 billion at September 28, 2025.

Cash and capital returns. For the nine months ended June 28, 2026, net cash provided by operating activities was $8,405 million, down $1,611 million from $10,016 million in the year-ago nine months; net cash used by investing activities was $1,648 million and by financing activities $10,046 million. Nine-month capital expenditures were $1.6 billion. Cash, cash equivalents and marketable securities (including restricted cash) fell $4,174 million to $8,304 million, reflecting $6.8 billion to repurchase 42 million shares (including repurchases offsetting share issuances for the Alphawave acquisition), $2.9 billion of dividends, capital expenditures, $1.6 billion of cash for acquisitions and other investments net of cash acquired, and $888 million of tax withholdings on vesting awards, partly offset by operating cash flow and $495 million of net commercial paper proceeds. Income taxes paid exceeded the provision over the nine months, primarily because of the $5.7 billion valuation-allowance release and a final $663 million installment on the one-time U.S. repatriation tax accrued in fiscal 2018. Changes in operating assets and liabilities were a drag, led by higher inventory reflecting customer demand effects from memory supply constraints. Debt was $15,270 million, including $2.0 billion classified as current and maturing in May 2027 and $498 million of commercial paper; the credit facility was undrawn. Shares outstanding went from 1,074 million at September 28, 2025 to 1,057 million at June 28, 2026 (25 million issued, 42 million repurchased).

Management's forward view in the 10-Q. Recent memory supply constraints and related price increases are expected to hurt demand from several handset OEMs and to weigh on results, with the extent dependent on memory availability, memory and device pricing dynamics, and end-consumer demand. The semiconductor industry is experiencing a broad-based increase in input costs and capacity constraints across wafer fabrication, assembly, test, advanced packaging, memory and other materials, partly from demand for leading-edge, AI and data center applications; Qualcomm expects increased product costs from key suppliers, which could pressure margins, and warns that constraints could leave it unable to fully satisfy customer demand. Global trade policy and tariffs remain an open variable. Competition is expected to stay intense, including vertical integration by customers, Apple already uses its own modem in certain smartphones and is expected to expand that use, which management says will have a significant negative impact on QCT revenues, results and cash flows. U.S./China trade and national security policy remains a named risk.

Litigation of note. The Arm Ltd. dispute has gone Qualcomm's way at trial and is now on appeal. Arm's 2022 Delaware complaint alleged that following the Nuvia acquisition Qualcomm and Nuvia breached Nuvia's architecture license agreement (the Nuvia ALA), and Arm sought specific performance including that Qualcomm cease using and destroy technology developed under that agreement, technology Arm alleges includes Qualcomm's custom Oryon CPU cores. A trial began December 16, 2024, and on December 20, 2024 the jury found that Qualcomm did not breach the Nuvia ALA and that Qualcomm CPUs incorporating designs acquired with Nuvia are licensed under Qualcomm's own architecture license agreement (the Qualcomm ALA); the jury could not reach a verdict on Arm's claim that Nuvia itself breached the Nuvia ALA. On September 30, 2025 the court entered final judgment upholding that verdict, granting judgment to Nuvia and dismissing Arm's remaining claims, and on October 1, 2025 Arm filed a notice of appeal to the Third Circuit. Arm had served a separate notice on October 22, 2024 alleging breaches of the Qualcomm ALA and asserting a right to terminate it, but on January 8, 2025 Arm withdrew that notice and said it had no current plan to terminate, reserving its rights pending the litigation. The live near-term catalyst is Qualcomm's own suit: its April 2024 Delaware complaint against Arm, since amended to add claims that Arm improperly sought to terminate and publicize termination of the Qualcomm ALA, failed to provide license offers at commercially reasonable prices and terms under the technology license agreement, and failed to negotiate certain license terms in good faith, is scheduled for trial beginning October 5, 2026. In ParkerVision's long-running patent case, the district court entered final judgment in Qualcomm's favor on the Receiver Claims on October 2, 2025 and severed and stayed ParkerVision's remaining Transmitter Claims pending appeal of the claim construction ruling; ParkerVision has appealed to the Federal Circuit, which heard the appeal on June 1, 2026. Qualcomm had recorded no accrual for contingent losses on these matters at June 28, 2026, on the basis that losses, while reasonably possible, are not probable, and that any possible amount or range of loss cannot be reasonably estimated.

Subsequent events

From the Form 10-Q for the quarter ended June 28, 2026, accession 0000804328-26-000086.

The quarterly report contains no separate subsequent-events note; the material post-period event it discloses appears in its acquisitions note.

Modular Inc, acquisition completed July 28, 2026, after the quarter end. Qualcomm completed the acquisition of Modular Inc, which provides an open, AI-native software platform enabling AI to run efficiently across hardware architectures. The company says the acquisition 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 of Qualcomm common stock. That included 4 million shares with an estimated fair value of approximately $700 million issued to certain executives and subject to a four-year post-acquisition service requirement, a portion of which will be recognized as compensation expense with the remainder included in the purchase price. Because of the timing, Qualcomm stated it was not practicable to disclose a preliminary purchase price allocation.

For context on the acquisitions completed within the period covered by the same report:

Alphawave IP Group plc, closed December 18, 2025 (first quarter of fiscal 2026). Qualcomm completed the acquisition for $2.3 billion, consisting primarily of $1.8 billion of equity consideration from the issuance of 11 million shares of common stock (including securities exchangeable for common stock) and $301 million of cash. Alphawave develops high-speed wired connectivity technologies, delivering IP, custom silicon and connectivity products; the deal is intended to accelerate and supply key assets for Qualcomm's expansion into data centers. Exchangeable Shares of Aqua ExchangeCo ULC were issued to certain Alphawave executives (4 million outstanding at June 28, 2026, exchangeable one-for-one), with an estimated fair value of $746 million, of which $453 million sits in the $2.3 billion purchase price and the remainder is subject to a four-year service requirement and recognized as compensation expense. The preliminary purchase price allocation records $2,210 million of goodwill, $239 million of amortizing intangible assets (primarily completed technology, weighted-average useful life five years), $107 million of in-process research and development, $51 million of cash and $288 million of other assets, against $278 million of convertible debt (settled in the second quarter of fiscal 2026) and $343 million of other liabilities, for net assets acquired of $2,274 million. Goodwill was allocated to the Data Center operating segment and is not deductible for tax purposes. The allocation is preliminary and may change through the measurement period, which will not exceed twelve months from closing. Pro forma results were not presented because the effects were not material to consolidated results.

Other acquisitions. During the first nine months of fiscal 2026 Qualcomm acquired seven other businesses for a total accounting purchase price of $1.1 billion, primarily to execute on products and technology supporting the QCT business including the diversification strategy. Acquired assets consisted primarily of $295 million of intangible assets and $737 million of goodwill, of which $661 million was allocated to QCT and $76 million to the Data Center operating segment.