Qualcomm(QCOM.US) FY2026 Q1 Earnings Call: Mobile chip revenue for the second fiscal quarter is expected to decline to approximately $6 billion

Recently, Qualcomm (QCOM.US) held its Q1 FY2026 earnings call. The company noted that although terminal demand remains strong, the smartphone industry is facing a severe memory shortage. Due to upward pressure on storage prices, mobile chip revenue for the second fiscal quarter is expected to decline to about $6 billion, reflecting supply chain bottlenecks that directly suppress shipment volumes.

In terms of performance, Qualcomm achieved a record revenue of $12.3 billion this quarter, with non-GAAP earnings per share of $3.50.

Among these, QCT (chip business) revenue hit a record $10.6 billion, mainly driven by strong flagship phone sales; automotive revenue grew 15% year-over-year to $1.1 billion, also a record high; IoT business showed positive momentum in industrial, edge networking applications, and smart glasses.

The company forecasted revenue for the second quarter to be between $10.2 billion and $11 billion, with non-GAAP EPS of $2.45 to $2.65.

Despite supply headwinds, Qualcomm’s position in the high-end market remains solid. Regarding Samsung’s upcoming flagship device (Galaxy S26 series), Qualcomm confirmed it expects to maintain about a 75% market share, consistent with previous expectations.

Additionally, the company specifically mentioned ByteDance’s launch of the Doubao AI smartphone, calling it an “important milestone in the transition to AI-native smartphones.”

Q&A Session

Operator: The first question comes from Joshua Buchalter of TD Cowen. Please go ahead.

Questioner: Hello, thank you for answering my question. I’d like to start with the smartphone outlook. Besides memory pricing, are there other factors contributing to the softness? Glad to hear the reaffirmed Samsung share. But I think the most important thing is, how should we view the overall market size for the full year? Do you think this inventory adjustment is the last issue you saw in the March quarter? Thank you.

Cristiano Amon: Thanks, Joshua. I’ll start, then hand it over to Akash for more details. It’s 100% related to memory. Actually, I’d say macroeconomic indicators have been consistently strong. We see demand for phones remaining robust. I believe, thanks to our licensing business, we have a good understanding of overall demand. We see sales data also very strong.

But unfortunately, what we saw in the first quarter—and in our guidance for the second quarter—is entirely determined by the availability of memory. As you know, all signs indicate that the availability of DRAM used in consumer electronics, especially smartphones, has actually decreased year-over-year because data centers are prioritizing HBM. I believe the market size will be dictated by this.

I think we see customers reacting immediately, adjusting their production plans to match their available memory. Akash, would you like to add more details?

Akash Palkhiwala: No, I think that covers it.

Questioner: Okay, thanks, Cristiano. My follow-up is, based solely on your guidance for QCT, the automotive figures imply a significant sequential acceleration. Is this a reflection of some of the ADAS orders you mentioned earlier? Perhaps you can talk about the drivers and the sustainability of this higher level of guidance? Thank you.

Cristiano Amon: Thank you very much. As we’ve always said, I believe the pipeline we’ve built in automotive continues to translate into revenue, especially as new vehicles ramp and launch. That’s why we continue to see record automotive revenue.

We know we don’t move with the industry. We mainly move with our share growth. I think we’re very excited about the trajectory. I’d say we feel good about all the revenue scale forecasts, and when you look at our FY2029 targets, everything is heading in the right direction.

We continue to secure more design wins. I believe our position in the industry is strengthening. Through this platform, we see Flex gaining appeal, capable of bringing ADAS and digital cockpit features across different tiers within the same chipset. We’re now seeing some major drivers, I believe, for mass production. We’ve announced a very extensive partnership with Volkswagen Group.

Regarding your comment, that’s correct. Once OEMs see the stack we launched with BMW, it’s an option for them, and we’re gaining more traction in ADAS. We see interest, and these developments are progressing very well.

Operator: The next question is from Samik Chatterjee of Morgan Stanley. Please go ahead.

Questioner: Hi, thanks for answering my questions. I have one about data centers and one about smartphones. Cristiano, could you update us on your progress with customers in data centers? Given the volatility we see in memory, is this more disruptive to your progress with customers, or does the high focus on BOMs actually accelerate discussions? I have a follow-up. Thanks.

Cristiano Amon: Thanks, Samik. Starting with data centers—everything is proceeding as planned. The only publicly announced customer is (inaudible), and progress is smooth; shipments have begun. We’ve been working with them on third-party workloads with ISVs.

We’re encouraged by the progress our team has made on the roadmap. We continue to receive very positive feedback from broad engagement—you can imagine, with a company of our scale, we’re in dialogue with some of the largest hyperscale and cloud providers.

We have something very unique. We’ve always said we have a platform dedicated to disaggregating data centers. We’re doing very well on certain workloads like decoding, using different compute and memory approaches. If anything, this validates that when you consider disaggregated data centers, having dedicated hardware rather than a GPU doing everything is attractive.

Our current focus is on execution. We’ve identified some milestones. We’re executing on two fronts: one is CPUs. Besides the Arm-compatible Orion, we’re adding RISC-V CPUs to our roadmap, along with AI250 and our new memory architecture.

We’ll share more details at investor events. So far, everything is on track. We still expect to start showing revenue in 2027. We’re feeling good. We just need to keep executing. Before I hand it over to Akash about memory, do you want to add anything?

Akash Palkhiwala: No, I think that covers it.

Questioner: Great, thanks Cristiano. My next question is, based on your guidance for QCT, the automotive figures suggest a pretty significant sequential acceleration. Is this driven by some of the ADAS orders you mentioned earlier? Maybe you can talk about the drivers and the sustainability of this higher guidance? Thanks.

Cristiano Amon: Thank you. As we’ve always said, the pipeline in automotive continues to convert into revenue, especially as new vehicles ramp and launch. That’s why we keep seeing record automotive revenue.

We know we don’t follow the industry’s movements. We mainly follow our share growth. I think we’re very excited about the trajectory. I’d say we’re confident about all our revenue scale forecasts, and when you look at our FY2029 targets, everything is heading in the right direction.

We’re securing more design wins. I believe our industry position is strengthening. Through this platform, we see Flex gaining appeal, capable of bringing ADAS and digital cockpit features across different tiers within the same chipset. We’ve announced a very broad partnership with Volkswagen Group.

Regarding your comment, that’s correct. Once OEMs see the stack we launched with BMW, it’s an option for them, and we’re gaining more traction in ADAS. We see interest, and these developments are progressing very well.

Operator: The next question is from Samik Chatterjee of Morgan Stanley. Please go ahead.

Questioner: Hi, thanks for answering my questions. I have one about data centers and one about smartphones. Cristiano, could you update us on your progress with customers in data centers? Given the volatility we see in memory, is this more disruptive to your progress with customers, or does the high focus on BOMs actually accelerate discussions? I have a follow-up. Thanks.

Cristiano Amon: Thanks, Samik. Starting with data centers—everything is proceeding as planned. The only publicly announced customer is (inaudible), and progress is smooth; shipments have begun. We’ve been working with them on third-party workloads with ISVs.

We’re encouraged by the progress our team has made on the roadmap. We continue to receive very positive feedback from broad engagement—you can imagine, with a company of our scale, we’re in dialogue with some of the largest hyperscale and cloud providers.

We have something very unique. We’ve always said we have a platform dedicated to disaggregating data centers. We’re doing very well on certain workloads like decoding, using different compute and memory approaches. If anything, this validates that when you consider disaggregated data centers, having dedicated hardware rather than a GPU doing everything is attractive.

Our current focus is on execution. We’ve identified some milestones. We’re executing on two fronts: one is CPUs. Besides the Arm-compatible Orion, we’re adding RISC-V CPUs to our roadmap, along with AI250 and our new memory architecture.

We’ll share more details at investor events. So far, everything is on track. We still expect to start showing revenue in 2027. We’re feeling good. We just need to keep executing. Before I hand it over to Akash about memory, do you want to add anything?

Akash Palkhiwala: No, I think that covers it.

Questioner: Great, thanks Cristiano. My next question is, based on your guidance for QCT, the automotive figures suggest a pretty significant sequential acceleration. Is this driven by some of the ADAS orders you mentioned earlier? Maybe you can talk about the drivers and the sustainability of this higher guidance? Thanks.

Cristiano Amon: Thank you. As we’ve always said, the pipeline in automotive continues to convert into revenue, especially as new vehicles ramp and launch. That’s why we keep seeing record automotive revenue.

We know we don’t follow the industry’s movements. We mainly follow our share growth. I think we’re very excited about the trajectory. I’d say we’re confident about all our revenue scale forecasts, and when you look at our FY2029 targets, everything is heading in the right direction.

We’re securing more design wins. I believe our industry position is strengthening. Through this platform, we see Flex gaining appeal, capable of bringing ADAS and digital cockpit features across different tiers within the same chipset. We’ve announced a very broad partnership with Volkswagen Group.

Regarding your comment, that’s correct. Once OEMs see the stack we launched with BMW, it’s an option for them, and we’re gaining more traction in ADAS. We see interest, and these developments are progressing very well.

Operator: The next question is from Samik Chatterjee of Morgan Stanley. Please go ahead.

Questioner: Hi, thanks for answering my questions. I have one about data centers and one about smartphones. Cristiano, could you update us on your progress with customers in data centers? Given the volatility we see in memory, is this more disruptive to your progress with customers, or does the high focus on BOMs actually accelerate discussions? I have a follow-up. Thanks.

Cristiano Amon: Thanks, Samik. Starting with data centers—everything is proceeding as planned. The only publicly announced customer is (inaudible), and progress is smooth; shipments have begun. We’ve been working with them on third-party workloads with ISVs.

We’re encouraged by the progress our team has made on the roadmap. We continue to receive very positive feedback from broad engagement—you can imagine, with a company of our scale, we’re in dialogue with some of the largest hyperscale and cloud providers.

We have something very unique. We’ve always said we have a platform dedicated to disaggregating data centers. We’re doing very well on certain workloads like decoding, using different compute and memory approaches. If anything, this validates that when you consider disaggregated data centers, having dedicated hardware rather than a GPU doing everything is attractive.

Our current focus is on execution. We’ve identified some milestones. We’re executing on two fronts: one is CPUs. Besides the Arm-compatible Orion, we’re adding RISC-V CPUs to our roadmap, along with AI250 and our new memory architecture.

We’ll share more details at investor events. So far, everything is on track. We still expect to start showing revenue in 2027. We’re feeling good. We just need to keep executing. Before I hand it over to Akash about memory, do you want to add anything?

Akash Palkhiwala: No, I think that covers it.

Questioner: Great, thanks Cristiano. My next question is, based on your guidance for QCT, the automotive figures suggest a pretty significant sequential acceleration. Is this driven by some of the ADAS orders you mentioned earlier? Maybe you can talk about the drivers and the sustainability of this higher guidance? Thanks.

Cristiano Amon: Thank you. As we’ve always said, the pipeline in automotive continues to convert into revenue, especially as new vehicles ramp and launch. That’s why we keep seeing record automotive revenue.

We know we don’t follow the industry’s movements. We mainly follow our share growth. I think we’re very excited about the trajectory. I’d say we’re confident about all our revenue scale forecasts, and when you look at our FY2029 targets, everything is heading in the right direction.

We’re securing more design wins. I believe our industry position is strengthening. Through this platform, we see Flex gaining appeal, capable of bringing ADAS and digital cockpit features across different tiers within the same chipset. We’ve announced a very broad partnership with Volkswagen Group.

Regarding your comment, that’s correct. Once OEMs see the stack we launched with BMW, it’s an option for them, and we’re gaining more traction in ADAS. We see interest, and these developments are progressing very well.

Operator: The next question is from Samik Chatterjee of Morgan Stanley. Please go ahead.

Questioner: Hi, thanks for answering my questions. I have one about data centers and one about smartphones. Cristiano, could you update us on your progress with customers in data centers? Given the volatility we see in memory, is this more disruptive to your progress with customers, or does the high focus on BOMs actually accelerate discussions? I have a follow-up. Thanks.

Cristiano Amon: Thanks, Samik. Starting with data centers—everything is proceeding as planned. The only publicly announced customer is (inaudible), and progress is smooth; shipments have begun. We’ve been working with them on third-party workloads with ISVs.

We’re encouraged by the progress our team has made on the roadmap. We continue to receive very positive feedback from broad engagement—you can imagine, with a company of our scale, we’re in dialogue with some of the largest hyperscale and cloud providers.

We have something very unique. We’ve always said we have a platform dedicated to disaggregating data centers. We’re doing very well on certain workloads like decoding, using different compute and memory approaches. If anything, this validates that when you consider disaggregated data centers, having dedicated hardware rather than a GPU doing everything is attractive.

Our current focus is on execution. We’ve identified some milestones. We’re executing on two fronts: one is CPUs. Besides the Arm-compatible Orion, we’re adding RISC-V CPUs to our roadmap, along with AI250 and our new memory architecture.

We’ll share more details at investor events. So far, everything is on track. We still expect to start showing revenue in 2027. We’re feeling good. We just need to keep executing. Before I hand it over to Akash about memory, do you want to add anything?

Akash Palkhiwala: No, I think that covers it.

Questioner: Great, thanks Cristiano. My next question is, based on your guidance for QCT, the automotive figures suggest a pretty significant sequential acceleration. Is this driven by some of the ADAS orders you mentioned earlier? Maybe you can talk about the drivers and the sustainability of this higher guidance? Thanks.

Cristiano Amon: Thank you. As we’ve always said, the pipeline in automotive continues to convert into revenue, especially as new vehicles ramp and launch. That’s why we keep seeing record automotive revenue.

We know we don’t follow the industry’s movements. We mainly follow our share growth. I think we’re very excited about the trajectory. I’d say we’re confident about all our revenue scale forecasts, and when you look at our FY2029 targets, everything is heading in the right direction.

We’re securing more design wins. I believe our industry position is strengthening. Through this platform, we see Flex gaining appeal, capable of bringing ADAS and digital cockpit features across different tiers within the same chipset. We’ve announced a very broad partnership with Volkswagen Group.

Regarding your comment, that’s correct. Once OEMs see the stack we launched with BMW, it’s an option for them, and we’re gaining more traction in ADAS. We see interest, and these developments are progressing very well.

Operator: The next question is from Samik Chatterjee of Morgan Stanley. Please go ahead.

Questioner: Hi, thanks for answering my questions. I have one about data centers and one about smartphones. Cristiano, could you update us on your progress with customers in data centers? Given the volatility we see in memory, is this more disruptive to your progress with customers, or does the high focus on BOMs actually accelerate discussions? I have a follow-up. Thanks.

Cristiano Amon: Thanks, Samik. Starting with data centers—everything is proceeding as planned. The only publicly announced customer is (inaudible), and progress is smooth; shipments have begun. We’ve been working with them on third-party workloads with ISVs.

We’re encouraged by the progress our team has made on the roadmap. We continue to receive very positive feedback from broad engagement—you can imagine, with a company of our scale, we’re in dialogue with some of the largest hyperscale and cloud providers.

We have something very unique. We’ve always said we have a platform dedicated to disaggregating data centers. We’re doing very well on certain workloads like decoding, using different compute and memory approaches. If anything, this validates that when you consider disaggregated data centers, having dedicated hardware rather than a GPU doing everything is attractive.

Our current focus is on execution. We’ve identified some milestones. We’re executing on two fronts: one is CPUs. Besides the Arm-compatible Orion, we’re adding RISC-V CPUs to our roadmap, along with AI250 and our new memory architecture.

We’ll share more details at investor events. So far, everything is on track. We still expect to start showing revenue in 2027. We’re feeling good. We just need to keep executing. Before I hand it over to Akash about memory, do you want to add anything?

Akash Palkhiwala: No, I think that covers it.

Questioner: Great, thanks Cristiano. My next question is, based on your guidance for QCT, the automotive figures suggest a pretty significant sequential acceleration. Is this driven by some of the ADAS orders you mentioned earlier? Maybe you can talk about the drivers and the sustainability of this higher guidance? Thanks.

Cristiano Amon: Thank you. As we’ve always said, the pipeline in automotive continues to convert into revenue, especially as new vehicles ramp and launch. That’s why we keep seeing record automotive revenue.

We know we don’t follow the industry’s movements. We mainly follow our share growth. I think we’re very excited about the trajectory. I’d say we’re confident about all our revenue scale forecasts, and when you look at our FY2029 targets, everything is heading in the right direction.

We’re securing more design wins. I believe our industry position is strengthening. Through this platform, we see Flex gaining appeal, capable of bringing ADAS and digital cockpit features across different tiers within the same chipset. We’ve announced a very broad partnership with Volkswagen Group.

Regarding your comment, that’s correct. Once OEMs see the stack we launched with BMW, it’s an option for them, and we’re gaining more traction in ADAS. We see interest, and these developments are progressing very well.

Operator: The next question is from Samik Chatterjee of Morgan Stanley. Please go ahead.

Questioner: Hi, thanks for answering my questions. I have one about data centers and one about smartphones. Cristiano, could you update us on your progress with customers in data centers? Given the volatility we see in memory, is this more disruptive to your progress with customers, or does the high focus on BOMs actually accelerate discussions? I have a follow-up. Thanks.

Cristiano Amon: Thanks, Samik. Starting with data centers—everything is proceeding as planned. The only publicly announced customer is (inaudible), and progress is smooth; shipments have begun. We’ve been working with them on third-party workloads with ISVs.

We’re encouraged by the progress our team has made on the roadmap. We continue to receive very positive feedback from broad engagement—you can imagine, with a company of our scale, we’re in dialogue with some of the largest hyperscale and cloud providers.

We have something very unique. We’ve always said we have a platform dedicated to disaggregating data centers. We’re doing very well on certain workloads like decoding, using different compute and memory approaches. If anything, this validates that when you consider disaggregated data centers, having dedicated hardware rather than a GPU doing everything is attractive.

Our current focus is on execution. We’ve identified some milestones. We’re executing on two fronts: one is CPUs. Besides the Arm-compatible Orion, we’re adding RISC-V CPUs to our roadmap, along with AI250 and our new memory architecture.

We’ll share more details at investor events. So far, everything is on track. We still expect to start showing revenue in 2027. We’re feeling good. We just need to keep executing. Before I hand it over to Akash about memory, do you want to add anything?

Akash Palkhiwala: No, I think that covers it.

Questioner: Great, thanks Cristiano. My next question is, based on your guidance for QCT, the automotive figures suggest a pretty significant sequential acceleration. Is this driven by some of the ADAS orders you mentioned earlier? Maybe you can talk about the drivers and the sustainability of this higher guidance? Thanks.

Cristiano Amon: Thank you. As we’ve always said, the pipeline in automotive continues to convert into revenue, especially as new vehicles ramp and launch. That’s why we keep seeing record automotive revenue.

We know we don’t follow the industry’s movements. We mainly follow our share growth. I think we’re very excited about the trajectory. I’d say we’re confident about all our revenue scale forecasts, and when you look at our FY2029 targets, everything is heading in the right direction.

We’re securing more design wins. I believe our industry position is strengthening. Through this platform, we see Flex gaining appeal, capable of bringing ADAS and digital cockpit features across different tiers within the same chipset. We’ve announced a very broad partnership with Volkswagen Group.

Regarding your comment, that’s correct. Once OEMs see the stack we launched with BMW, it’s an option for them, and we’re gaining more traction in ADAS. We see interest, and these developments are progressing very well.

Operator: The next question is from Samik Chatterjee of Morgan Stanley. Please go ahead.

Questioner: Hi, thanks for answering my questions. I have one about data centers and one about smartphones. Cristiano, could you update us on your progress with customers in data centers? Given the volatility we see in memory, is this more disruptive to your progress with customers, or does the high focus on BOMs actually accelerate discussions? I have a follow-up. Thanks.

Cristiano Amon: Thanks, Samik. Starting with data centers—everything is proceeding as planned. The only publicly announced customer is (inaudible), and progress is smooth; shipments have begun. We’ve been working with them on third-party workloads with ISVs.

We’re encouraged by the progress our team has made on the roadmap. We continue to receive very positive feedback from broad engagement—you can imagine, with a company of our scale, we’re in dialogue with some of the largest hyperscale and cloud providers.

We have something very unique. We’ve always said we have a platform dedicated to disaggregating data centers. We’re doing very well on certain workloads like decoding, using different compute and memory approaches. If anything, this validates that when you consider disaggregated data centers, having dedicated hardware rather than a GPU doing everything is attractive.

Our current focus is on execution. We’ve identified some milestones. We’re executing on two fronts: one is CPUs. Besides the Arm-compatible Orion, we’re adding RISC-V CPUs to our roadmap, along with AI250 and our new memory architecture.

We’ll share more details at investor events. So far, everything is on track. We still expect to start showing revenue in 2027. We’re feeling good. We just need to keep executing. Before I hand it over to Akash about memory, do you want to add anything?

Akash Palkhiwala: No, I think that covers it.

Questioner: Great, thanks Cristiano. My next question is, based on your guidance for QCT, the automotive figures suggest a pretty significant sequential acceleration. Is this driven by some of the ADAS orders you mentioned earlier? Maybe you can talk about the drivers and the sustainability of this higher guidance? Thanks.

Cristiano Amon: Thank you. As we’ve always said, the pipeline in automotive continues to convert into revenue, especially as new vehicles ramp and launch. That’s why we keep seeing record automotive revenue.

We know we don’t follow the industry’s movements. We mainly follow our share growth. I think we’re very excited about the trajectory. I’d say we’re confident about all our revenue scale forecasts, and when you look at our FY2029 targets, everything is heading in the right direction.

We’re securing more design wins. I believe our industry position is strengthening. Through this platform, we see Flex gaining appeal, capable of bringing ADAS and digital cockpit features across different tiers within the same chipset. We’ve announced a very broad partnership with Volkswagen Group.

Regarding your comment, that’s correct. Once OEMs see the stack we launched with BMW, it’s an option for them, and we’re gaining more traction in ADAS. We see interest, and these developments are progressing very well.

Operator: The next question is from Samik Chatterjee of Morgan Stanley. Please go ahead.

Questioner: Hi, thanks for answering my questions. I have one about data centers and one about smartphones. Cristiano, could you update us on your progress with customers in data centers? Given the volatility we see in memory, is this more disruptive to your progress with customers, or does the high focus on BOMs actually accelerate discussions? I have a follow-up. Thanks.

Cristiano Amon: Thanks, Samik. Starting with data centers—everything is proceeding as planned. The only publicly announced customer is (inaudible), and progress is smooth; shipments have begun. We’ve been working with them on third-party workloads with ISVs.

We’re encouraged by the progress our team has made on the roadmap. We continue to receive very positive feedback from broad engagement—you can imagine, with a company of our scale, we’re in dialogue with some of the largest hyperscale and cloud providers.

We have something very unique. We’ve always said we have a platform dedicated to disaggregating data centers. We’re doing very well on certain workloads like decoding, using different compute and memory approaches. If anything, this validates that when you consider disaggregated data centers, having dedicated hardware rather than a GPU doing everything is attractive.

Our current focus is on execution. We’ve identified some milestones. We’re executing on two fronts: one is CPUs. Besides the Arm-compatible Orion, we’re adding RISC-V CPUs to our roadmap, along with AI250 and our new memory architecture.

We’ll share more details at investor events. So far, everything is on track. We still expect to start showing revenue in 2027. We’re feeling good. We just need to keep executing. Before I hand it over to Akash about memory, do you want to add anything?

Akash Palkhiwala: No, I think that covers it.

Questioner: Great, thanks Cristiano. My next question is, based on your guidance for QCT, the automotive figures suggest a pretty significant sequential acceleration. Is this driven by some of the ADAS orders you mentioned earlier? Maybe you can talk about the drivers and the sustainability of this higher guidance? Thanks.

Cristiano Amon: Thank you. As we’ve always said, the pipeline in automotive continues to convert into revenue, especially as new vehicles ramp and launch. That’s why we keep seeing record automotive revenue.

We know we don’t follow the industry’s movements. We mainly follow our share growth. I think we’re very excited about the trajectory. I’d say we’re confident about all our revenue scale forecasts, and when you look at our FY2029 targets, everything is heading in the right direction.

We’re securing more design wins. I believe our industry position is strengthening. Through this platform, we see Flex gaining appeal, capable of bringing ADAS and digital cockpit features across different tiers within the same chipset. We’ve announced a very broad partnership with Volkswagen Group.

Regarding your comment, that’s correct. Once OEMs see the stack we launched with BMW, it’s an option for them, and we’re gaining more traction in ADAS. We see interest, and these developments are progressing very well.

Operator: The next question is from Samik Chatterjee of Morgan Stanley. Please go ahead.

Questioner: Hi, thanks for answering my questions. I have one about data centers and one about smartphones. Cristiano, could you update us on your progress with customers in data centers? Given the volatility we see in memory, is this more disruptive to your progress with customers, or does the high focus on BOMs actually accelerate discussions? I have a follow-up. Thanks.

Cristiano Amon: Thanks, Samik. Starting with data centers—everything is proceeding as planned. The only publicly announced customer is (inaudible), and progress is smooth; shipments have begun. We’ve been working with them on third-party workloads with ISVs.

We’re encouraged by the progress our team has made on the roadmap. We continue to receive very positive feedback from broad engagement—you can imagine, with a company of our scale, we’re in dialogue with some of the largest hyperscale and cloud providers.

We have something very unique. We’ve always said we have a platform dedicated to disaggregating data centers. We’re doing very well on certain workloads like decoding, using different compute and memory approaches. If anything, this validates that when you consider disaggregated data centers, having dedicated hardware rather than a GPU doing everything is attractive.

Our current focus is on execution. We’ve identified some milestones. We’re executing on two fronts: one is CPUs. Besides the Arm-compatible Orion, we’re adding RISC-V CPUs to our roadmap, along with AI250 and our new memory architecture.

We’ll share more details at investor events. So far, everything is on track. We still expect to start showing revenue in 2027. We’re feeling good. We just need to keep executing. Before I hand it over to Akash about memory, do you want to add anything?

Akash Palkhiwala: No, I think that covers it.

Questioner: Great, thanks Cristiano. My next question is, based on your guidance for QCT, the automotive figures suggest a pretty significant sequential acceleration. Is this driven by some of the ADAS orders you mentioned earlier? Maybe you can talk about the drivers and the sustainability of this higher guidance? Thanks.

Cristiano Amon: Thank you. As we’ve always said, the pipeline in automotive continues to convert into revenue, especially as new vehicles ramp and launch. That’s why we keep seeing record automotive revenue.

We know we don’t follow the industry’s movements. We mainly follow our share growth. I think we’re very excited about the trajectory. I’d say we’re confident about all our revenue scale forecasts, and when you look at our FY2029 targets, everything is heading in the right direction.

We’re securing more design wins. I believe our industry position is strengthening. Through this platform, we see Flex gaining appeal, capable of bringing ADAS and digital cockpit features across different tiers within the same chipset. We’ve announced a very broad partnership with Volkswagen Group.

Regarding your comment, that’s correct. Once OEMs see the stack we launched with BMW, it’s an option for them, and we’re gaining more traction in ADAS. We see interest, and these developments are progressing very well.

Operator: The next question is from Samik Chatterjee of Morgan Stanley. Please go ahead.

Questioner: Hi, thanks for answering my questions. I have one about data centers and one about smartphones. Cristiano, could you update us on your progress with customers in data centers? Given the volatility we see in memory, is this more disruptive to your progress with customers, or does the high focus on BOMs actually accelerate discussions? I have a follow-up. Thanks.

Cristiano Amon: Thanks, Samik. Starting with data centers—everything is proceeding as planned. The only publicly announced customer is (inaudible), and progress is smooth; shipments have begun. We’ve been working with them on third-party workloads with ISVs.

We’re encouraged by the progress our team has made on the roadmap. We continue to receive very positive feedback from broad engagement—you can imagine, with a company of our scale, we’re in dialogue with some of the largest hyperscale and cloud providers.

We have something very unique. We’ve always said we have a platform dedicated to disaggregating data centers. We’re doing very well on certain workloads like decoding, using different compute and memory approaches. If anything, this validates that when you consider disaggregated data centers, having dedicated hardware rather than a GPU doing everything is attractive.

Our current focus is on execution. We’ve identified some milestones. We’re executing on two fronts: one is CPUs. Besides the Arm-compatible Orion, we’re adding RISC-V CPUs to our roadmap, along with AI250 and our new memory architecture.

We’ll share more details at investor events. So far, everything is on track. We still expect to start showing revenue in 2027. We’re feeling good. We just need to keep executing. Before I hand it over to Akash about memory, do you want to add anything?

Akash Palkhiwala: No, I think that covers it.

Questioner: Great, thanks Cristiano. My next question is, based on your guidance for QCT, the automotive figures suggest a pretty significant sequential acceleration. Is this driven by some of the ADAS orders you mentioned earlier? Maybe you can talk about the drivers and the sustainability of this higher guidance? Thanks.

Cristiano Amon: Thank you. As we’ve always said, the pipeline in automotive continues to convert into revenue, especially as new vehicles ramp and launch. That’s why we keep seeing record automotive revenue.

We know we don’t follow the industry’s movements. We mainly follow our share growth. I think we’re very excited about the trajectory. I’d say we’re confident about all our revenue scale forecasts, and when you look at our FY2029 targets, everything is heading in the right direction.

We’re securing more design wins. I believe our industry position is strengthening. Through this platform, we see Flex gaining appeal, capable of bringing ADAS and digital cockpit features across different tiers within the same chipset. We’ve announced a very broad partnership with Volkswagen Group.

Regarding your comment, that’s correct. Once OEMs see the stack we launched with BMW, it’s an option for them, and we’re gaining more traction in ADAS. We see interest, and these developments are progressing very well.

Operator: The next question is from C.J. Muse of Cantor Fitzgerald. Please go ahead.

Questioner: Yes, good afternoon. Thanks for answering. I want to ask, since DRAM manufacturers have been talking about only meeting 50% to 70% of demand, emphasizing shortages lasting until 2028, how are you planning for this potentially prolonged situation?

Are your Chinese customers seeking design approvals from CXMT, and can you get certified? I believe your business with Samsung remains strong because they have internal DRAM supply, and you’ve committed TSMC wafers in the supply chain. Given all these uncertainties, how do you manage all of this?

Cristiano Amon: Very good question. I know it’s obvious, but just to clarify—I don’t buy memory for smartphones. Some memory stacks on modems, but most memory is purchased directly by our customers.

Given our scale, you should expect we might be among the first to get certifications from each memory supplier. Every memory vendor, including CXMT and smaller ones, we’ve already obtained certifications from. Compared to others, we also have flexibility—if you look closely, we use new and old versions of memory on our platforms, with multiple generations of memory controllers.

So, from a platform perspective, we’ll use whatever is available. That’s always been our approach during shortages. The bigger issue is the overall industry trend. I believe data center growth continues strongly. It’s very clear.

Memory suppliers have prioritized HBM production. The data you just mentioned reflects what we see. As I said earlier, there are very clear signs that, as of today, memory availability for consumer electronics is below demand year-over-year, and we’ve seen this in increased prices. You’re starting to see comments about gaming consoles and other consumer electronics.

We really can’t predict whether this will continue into 2027 or 2028. There are capacity expansion plans, and it also depends on how much the data center trend accelerates. At this point, it’s fair to assume that for this fiscal year, the size of the mobile market—likely the most impacted segment—will be defined by DRAM availability.

Akash Palkhiwala: CJ, regarding your second part about leading-node wafers—yes, as you know, leading-node wafer supply is also constrained, but we have good relationships with suppliers. We’re confident we’ll have enough wafers to meet demand.

Questioner: Thank you. As a follow-up, if we do see higher Snapdragon mix but lower unit sales, how should we think about the impact on your QCT EVT margins?

Akash Palkhiwala: Yes, as you know, CJ, we perform very well in high-end and premium tiers. So, as sales shift upward, that’s generally favorable for us.

Operator: The next question is from Ben Reitzes of Melius Research. Please go ahead.

Questioner: Yes, hi. Thanks for answering. Continuing on memory, given Apple’s tendency for double-digit growth—possibly for the full year—it seems they will continue to get a disproportionate share of available DRAM. Is that possible? How are you managing all partners?

I wonder if this disproportionate unit growth and allocation for one supplier could introduce some uncertainty that might extend into the next fiscal year.

Cristiano Amon: It’s hard to predict, but I’d also remind you that we have another major customer with a memory division. So, generally, I think larger OEMs are better positioned to secure sufficient memory and will prioritize accordingly, which might be different for smaller OEMs