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Segment Information
 12 Months Ended
Sep. 28, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
We are organized on the basis of products and services and have three reportable segments. Our operating segments reflect the way our businesses and management/reporting structure are organized internally and the way our Chief Operating Decision Maker (CODM), who is our CEO, reviews financial information, makes operating decisions and assesses business performance. We also consider, among other items, the way budgets and forecasts are prepared and reviewed and the basis on which executive compensation is determined, as well as the similarities and the level of centralized resource planning within our operating segments, such as the nature of products, the level of shared products, technology and other resources, production processes and customer base. We conduct business primarily through our QCT semiconductor business and our QTL licensing business. QCT develops and supplies integrated circuits and system software with advanced connectivity and high-performance, low-power computing technologies for use in mobile devices; automotive systems for connectivity, digital
cockpit and ADAS/AD; and IoT including consumer electronic devices, industrial devices and edge networking products. QTL grants licenses or otherwise provides rights to use portions of our intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products. Our QSI (Qualcomm Strategic Initiatives) reportable segment makes strategic investments. We also have nonreportable segments, including QGOV (Qualcomm Government Technologies) and our Data Center business (formerly referred to as our cloud computing processing initiative).
Our CODM uses revenues and earnings (loss) before income taxes (EBT) to evaluate performance and allocate resources for our segments primarily through our budget and forecasting process. Our CODM primarily uses these metrics by comparing actual results to forecasted and prior period results. Segment EBT includes the allocation of certain corporate expenses to the segments, including depreciation and amortization expense (the majority of which is allocated to QCT). Certain income and charges are not allocated to segments in our management reports because they are not considered in evaluating the segments’ operating performance. Unallocated income and charges include certain interest expense, certain net investment income, share-based compensation, gains and losses on our deferred compensation plan liabilities and related assets and certain research and development (R&D) expenses, certain selling, general and administrative (SG&A) expenses and other expenses or income that were deemed to be not directly related to the businesses of the segments. Additionally, unallocated charges include amortization of certain intangible assets and certain other acquisition-related charges, third-party acquisition and integration services costs and certain other items, which may include major restructuring and restructuring-related costs, asset impairment charges and awards, settlements and/or damages arising from legal or regulatory matters and recognition of the step-up of inventories and property, plant and equipment to fair value. Our CODM does not evaluate our operating segments using discrete asset information.
The table below presents revenues, EBT and significant expense categories regularly provided to the CODM for reportable segments (in millions):
202520242023
QCT:
Revenues
$38,367 $33,196 $30,382 
Cost of revenues
19,302 16,648 15,367 
Operating expenses (R&D and SG&A)
7,395 7,021 7,091 
EBT
$11,670 $9,527 $7,924 
QTL:
Revenues
$5,582 $5,572 $5,306 
Costs and expenses (1)
1,539 1,545 1,678 
EBT
$4,043 $4,027 $3,628 
QSI:
Revenues
$— $18 $28 
Cost of revenues
— 7 15 
Operating expenses
13 12 12 
Investment and other income (expense), net
193 105 (13)
EBT
$180 $104 $(12)
(1) Substantially all of QTL’s costs and expenses are comprised of operating expenses.
Consolidated revenues and EBT include the following reconciling items (in millions):
202520242023
Revenues:
Reportable segments
$43,949 $38,786 $35,716 
Nonreportable segments192 176 144 
Unallocated revenues
143 — (40)
$44,284 $38,962 $35,820 
EBT:
Reportable segments
$15,893 $13,658 $11,540 
Nonreportable segments(39)(14)(38)
Unallocated revenues
143 — (40)
Unallocated cost of revenues(270)(229)(205)
Unallocated research and development expenses(2,357)(2,277)(2,034)
Unallocated selling, general and administrative expenses(783)(781)(588)
Unallocated other expense (Note 2)
(39)(179)(862)
Unallocated interest expense(664)(697)(694)
Unallocated investment and other income, net
779 855 364 
$12,663 $10,336 $7,443 
Certain revenues were not allocated to our segments in our management reports because they were not considered in evaluating segment results. Unallocated revenues in fiscal 2025 were comprised of licensing revenues resulting from a recent settlement of a licensing dispute.
The net book value of long-lived tangible assets located outside of the U.S. (the majority of which is located in Taiwan and the rest of the Asia-Pacific region) was $3.4 billion and $3.5 billion at September 28, 2025 and September 29, 2024, respectively. The net book value of long-lived tangible assets located in the U.S. was $2.0 billion and $1.9 billion at September 28, 2025 and September 29, 2024, respectively.
We report revenues by country based on our customer’s/licensee’s headquarters. As a result, the revenues by country presented herein are not necessarily indicative of the country in which the device containing our products and/or intellectual property are ultimately sold to consumers. Revenues by country were as follows (in millions, except percentages):
202520242023
China (including Hong Kong)$20,340 46 %$17,826 46 %$13,386 37 %
United States10,515 24 9,686 25 10,503 29 
South Korea9,542 21 7,995 20 8,075 23 
Other foreign3,887 9 3,455 9 3,856 11 
$44,284 100 %$38,962 100 %$35,820 100 %