Qualcomm reported $10.6 billion in revenue for fiscal year Q2 2026, a 3% decline from the same period last year when it posted $10.98 billion. The earnings, announced April 29, align with expectations but reveal mounting pressure from the ongoing memory shortage affecting the broader smartphone industry. This comes just days after reports of Qualcomm partnering with OpenAI on smartphone processors, signaling strategic shifts amid industry challenges.

CEO Cristiano Amon acknowledged the challenging landscape, noting the company is navigating a "challenging memory environment" during a period of "profound industry transformation" driven by AI agents. Despite launching the Samsung Galaxy S26 series with its Snapdragon 8 Elite Gen 5 chip (holding roughly 70% market share), Qualcomm's QCT division still saw a 13% year-over-year revenue decline, highlighting the severity of supply constraints.

The memory shortage's impact extends beyond current performance, with Qualcomm projecting Q3 revenue between $9.2B - $10.0B—below analyst expectations. While mobile chips face headwinds, Automotive and IoT segments showed resilience, growing 38% and 9% respectively. The company is also pushing into AI data center chips, expected to launch later this year and in 2027, with more details coming at Qualcomm's Investor Day in June.