Segment Information

6 Months Ended

Mar. 29, 2026

Segment Reporting [Abstract]

Segment Information

Note 6. 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 circuit platforms 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.

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 (as presented on the condensed consolidated statements of cash flows, 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, 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 and EBT for reportable segments (in millions):

	Three Months Ended				Six Months Ended
	March 29, 2026		March 30, 2025		March 29, 2026		March 30, 2025
QCT:
Revenues	$	9,076	$	9,469	$	19,689	$	19,553
Cost of revenues	4,700		4,834		10,145		9,898
Operating expenses (R&D and SG&A)	1,911		1,778		3,777		3,552
EBT	$	2,465	$	2,857	$	5,767	$	6,103
QTL:
Revenues	$	1,382	$	1,319	$	2,974	$	2,854
Costs and expenses (1)	388		390		750		768
EBT	$	994	$	929	$	2,224	$	2,086
QSI:
Revenues	$	—	$	—	$	—	$	—
Operating expenses	3		3		5		6
Investment and other (expense) income, net	(27)		13		154		35
EBT	$	(30)	$	10	$	149	$	29

(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):

	Three Months Ended				Six Months Ended
	March 29, 2026		March 30, 2025		March 29, 2026		March 30, 2025
Revenues
Reportable segments	$	10,458	$	10,788	$	22,663	$	22,407
Nonreportable segments	141		48		188		99
Unallocated revenues	—		143		—		143
	$	10,599	$	10,979	$	22,851	$	22,649
EBT
Reportable segments	$	3,429	$	3,796	$	8,140	$	8,218
Nonreportable segments	(121)		(7)		(204)		(6)
Unallocated revenues	—		143		—		143
Unallocated cost of revenues	(95)		(60)		(178)		(119)
Unallocated R&D expenses	(616)		(558)		(1,314)		(1,156)
Unallocated SG&A expenses	(274)		(184)		(573)		(372)
Unallocated other expenses	(29)		—		(29)		—
Unallocated interest expense	(171)		(163)		(341)		(326)
Unallocated investment and other income, net	109		138		278		358
	$	2,232	$	3,105	$	5,779	$	6,740

Certain revenues were not allocated to our segments in our management reports because they were not considered in evaluating segment results. Unallocated revenues in the second quarter and first six months of fiscal 2025 were comprised of licensing revenues resulting from a settlement of a licensing dispute in the second quarter of fiscal 2025.