QUALCOMM Incorporated (QCOM) SEC Filings & Earnings Calls

Potential dilution of up to 25M shares; 3.75M shares already vested.

“issued a warrant ... to acquire up to an aggregate of 25,000,000 shares”

Share dilution from stock consideration for acquisition

“17,826,566 shares issued as consideration”

Handset revenue decline of 20% YoY; broad-based input cost increases pressuring margins.

“Handsets $5,086M (-20%); semiconductor industry experiencing broad-based increase in input costs”

GAAP and Non-GAAP EPS down 23% and 20% respectively; QCT EBT margin down 4 points.

“GAAP EPS $1.87 (-23%); Non-GAAP EPS $2.21 (-20%); QCT EBT margin 26% vs 30%”

Customer vertical integration

“we expect that Apple will increasingly use its own modem products, rather than our products, in its future devices, which will have a significant negative impact on our QCT revenues, results of operations and cash flows.” · word for word

China concentration and export controls

“A significant portion of our business is concentrated in China, and the risks of such concentration are exacerbated by U.S./China trade and national security tensions.” · word for word

Supply chain concentration

“We depend on a limited number of third-party suppliers for the procurement, manufacture, assembly and testing of our products manufactured in a fabless production model.” · word for word

Acquisition may not close; integration risks; potential dilution.

“uncertainties as to the timing to complete the Acquisition; the ability to complete the Acquisition; the effect of the announcement... on Modular’s business relationships and employees”

Customer concentration and vertical integration

“We derive a significant portion of our revenues from a small number of customers and licensees, and particularly from their sale of premium-tier handset devices.” · word for word

China concentration and trade tensions

“A significant portion of our business is concentrated in China, and the risks of such concentration are exacerbated by U.S./China trade and national security tensions.” · word for word

Supply chain dependency on limited suppliers

“We depend on a limited number of third-party suppliers for the procurement, manufacture, assembly and testing of our products manufactured in a fabless production model.” · word for word

Memory supply constraints impacting handset OEM demand; Q3 guidance below expectations.

“Our guidance for the third quarter of fiscal 2026 includes the estimated impact of memory supply constraints and related pricing on demand from several handset OEMs” · word for word

QCT handset revenue -13% yoy; Chinese handset revenue expected to bottom in Q3.

“QCT handset revenues from Chinese customers will reach a bottom in the third quarter” · word for word

Memory supply constraints impacting handset customer demand in near term.

“Our guidance for the second quarter of fiscal 2026 includes the estimated impact of memory supply constraints and related pricing on demand from several handset customers.” · word for word

Memory supply constraints impacting handset demand

“We expect recent memory supply constraints and related pricing increases to adversely affect demand from several handset customers, which will negatively impact our financial results.” · word for word

Apple modem vertical integration

“Apple utilizes its own modem (rather than our products) in certain of its smartphones and we expect that Apple will increasingly use its own modem products, rather than our products, in its future devices, which will have a significant negative impact on our QCT revenues, results of operations and cash flows.” · word for word

U.S./China trade tensions

“U.S./China trade relations and/or national security protection policies may negatively impact our business, growth prospects and results of operations.” · word for word

Tariff impact on demand and costs

“Changes to global trade policies may negatively impact demand, pricing and cost for our products and technologies, and contribute to the inherent uncertainties in estimating future customer demand, which may result in increased excess or obsolete inventory or reserve charges.” · word for word

Legal proceedings (Arm litigation)

“The unfavorable resolution of one or more of these matters could have a material adverse effect on our business, results of operations, financial condition or cash flows.” · word for word

China Revenue Concentration and Export Control Risk

“We derive a significant portion of our revenues from Chinese OEMs, and from non-Chinese OEMs that utilize our products in devices they sell into China, which has the largest number of smartphone users in the world. We also source certain critical integrated circuit products from Chinese suppliers.” · word for word

Customer Vertical Integration Risk

“some of our customers in China have developed, and others may in the future develop, their own integrated circuit products and use such integrated circuit products in their devices, or use our competitors' integrated circuit products in their devices, rather than our products, which could materially harm our business” · word for word

Huawei Revenue Loss

“In May 2024, the U.S. Department of Commerce revoked the export license under which we previously sold 4G and certain other integrated circuit products to Huawei, which is one of the largest smartphone OEMs in China. Accordingly, we do not expect to receive any further product revenues from Huawei” · word for word

Tax Valuation Allowance Impact

“Fiscal 2025 GAAP results included a $5.7 billion non-cash charge to income tax expense to establish a valuation allowance as we no longer expect to realize substantially all of our existing federal deferred tax assets as a result of the tax reform legislation included in the One Big Beautiful Bill Act enacted on July 4, 2025.” · word for word

Loss of director with cybersecurity expertise (Young is former CEO of McAfee and current CEO of Vertex).

“Director Young's departure; no replacement named.”

Customer concentration in premium-tier handsets

“We derive a significant portion of our revenues from a small number of customers and licensees, and particularly from their sale of premium-tier handset devices.” · word for word

Vertical integration by key customers

“we expect that Apple will increasingly use its own modem products, rather than our products, in its future devices, which will have a significant negative impact on our QCT revenues, results of operations and cash flows.” · word for word

China concentration and U.S./China tensions

“A significant portion of our business is concentrated in China, and the risks of such concentration are exacerbated by U.S./China trade and national security tensions.” · word for word

Supply chain dependency on limited third-party suppliers

“We depend on a limited number of third-party suppliers for the procurement, manufacture, assembly and testing of our products manufactured in a fabless production model.” · word for word

Premium-tier device demand decline

“A reduction in sales of premium-tier devices... would reduce our revenues and margins.” · word for word

One Big Beautiful Bill Act resulted in $5.7B non-cash charge for valuation allowance against deferred tax assets.

“This new tax legislation resulted in a non-cash $5.7 billion charge, or $5.29 per share, in the fourth quarter of fiscal 2025 to establish a valuation allowance against our U.S. federal deferred tax assets” · word for word