QUALCOMM (QCOM) Surges 12% on Hyperscaler AI Win and $20B Buyback
QUALCOMM reported Q2 2026 results with revenue of $10.6 billion and net income of $7.37 billion. The company also announced a major hyperscaler AI chip win and a $20 billion buyback, sending shares up 12.1%.
Key Numbers
QUALCOMM Incorporated (NASDAQ: QCOM) reported its fiscal second-quarter 2026 results, with revenue of $10.599 billion, down from $10.979 billion a year earlier. Net income surged to $7.37 billion from $2.81 billion, and diluted EPS rose to $6.88 from $2.52. Shares jumped 12.1% in after-hours trading.
Key Financial Results
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Revenue | $10.599B | $10.979B | -3.5% |
| Net Income | $7.37B | $2.81B | +162% |
| Diluted EPS | $6.88 | $2.52 | +173% |
Highlights from the Report
QUALCOMM attributed the strong performance to growth in automotive and IoT segments, which offset weaker handset sales. The company also announced a win with a major hyperscaler to supply custom AI silicon for data centers, marking a strategic shift toward AI infrastructure.
Guidance
The company did not provide specific numerical guidance for the next quarter, but management expressed optimism driven by AI momentum.
Impact on Stock
Shares of QCOM rose 12.1% following the announcement, reflecting investor enthusiasm for the AI deal and the $20 billion buyback.
What This Means for Investors
The hyperscaler AI win represents a new growth avenue for QUALCOMM beyond its traditional handset business. Combined with the $20 billion buyback, the company is positioned to enhance shareholder value, though investors should monitor continued weakness in handsets.
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