QUALCOMM Incorporated (NASDAQ: QCOM) Q1 2026 Earnings Call dated Feb. 04, 2026
Corporate Participants:
Cristiano R. Amon — President & Chief Executive Officer
Akash Palkhiwala — Chief Financial Officer
Alex Rogers — President, Qualcomm Technology Licensing (QTL) & Global Affairs
Analysts:
Mauricio Lopez-Hodoyan — Analyst
Joshua Buchalter — Analyst
Samik Chatterjee — Analyst
Ross Seymore — Analyst
Stacy Rasgon — Analyst
Timothy Arcuri — Analyst
C.J. Muse — Analyst
Ben Reitzes — Analyst
Presentation:
operator
Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm first quarter fiscal 2026 earnings conference call. At this time, all participants are in listen only mode. Later, we will conduct a question and answer session. If you’d like to ask a question during this time, press star, then the number one on your telephone keypad. To draw your question, press star, then a number two. If you’re using a speakerphone, please pick up your handset before pressing the numbers. Please limit your questions to one question and one follow up. As a reminder, this conference is being recorded February 4, 2026.
The playback number for today’s call is 877-660-6853. International callers, please dial 201-612-7415. The playback reservation number is 1-375-8127. I would now like to turn the call over to Mauricio Lopesidoyan, Vice President of Investor Relations. Mr. Lopez Adoyan. Please go ahead.
Mauricio Lopez-Hodoyan — Analyst
Thank you and good afternoon everyone. Today’s call will include prepared remarks by Cristiano Mon and Akash Palkowala. In addition, Alex Rogers will join the question and answer session. You can access our earnings release and a slide presentation that accompany this call or on our investor relations website. In addition, this call has been webcast on qualcomm.com and a replay will be available on our website later today. During the call today, we will use non GAAP financial measures as defined in Regulation G and you can find the related reconciliations to GAAP on our website. We will also make forward looking statements including projections and estimates of future events, business or industry trends or business or financial results.
Actual events or results could differ materially from those projected in our forward looking statements. Please refer to our SEC filings, including our most recent 10K which contain important factors that could cause actual results to differ materially from the forward looking statements. And now to comments from Qualcomm’s President and Chief Executive Officer, Cristiano Mon.
Cristiano R. Amon — President & Chief Executive Officer
Thank you Mauricio and good afternoon everyone. Thanks for joining us today. In fiscal Q1, we delivered record revenues of $12.3 billion in non GAAP earnings per share of $3.50 within QCT. Record revenues of $10.6 billion were driven by strength in flagship handsets. We also saw another quarter of record revenues in automotive and positive momentum in IoT across industrial edge networking applications and smart glasses. Licensing business revenues were $1.6 billion while global consumer demand for handsets, especially premium and high tier, exceeded our expectations. With healthy sell through observed through fiscal Q1 in the first few weeks of 2026.
In the coming quarters, the handset industry will be constrained by the availability and pricing of memory, particularly as memory suppliers redirect manufacturing capacity to HBM to meet AI data center demand. The resulting industry wide memory shortage and price increases are likely to define the overall scale of the handset industry through the fiscal year. Given the current environment, several handset OEMs, especially in China, are taking a cautious approach in reducing their chipset inventory. This is reflected in our guidance for the upcoming quarter. We will continue to work closely with our customers and suppliers as the situation evolves.
Akash will share more details on the memory impact in his prepared remarks and now some key highlights from the business we are pleased with the continued expansion of the premium and high tier smartphone segments and traction of Snapdragon platforms, including broad OEM adoption for dual flagship product strategy. For Samsung’s upcoming family of premium tier devices, we expect approximately 75% share, consistent with prior expectations. It’s important to note that during the quarter Bidens launched the first agentic AI smartphone powered by the Snapdragon 8 Elite. This is a significant milestone in the transition toward AI native smartphones and the precursor to the agentic experiences shaping the future of mobile.
With the development of agents and AI becoming the new ui, intelligent wearables are evolving into personal AI companions and quickly emerging as the next mobile computing category. Our early investments in this area, including powerful and power efficient chipsets, advanced connectivity including Micropower, WI Fi as well as ambient sensing and perception technologies, position Snapdragon xr, wear and sound as the platforms of choice for the industry. We’re pleased to be working with seven of the nine largest cloud companies globally and more than 40 personal AI devices are in production or development in PCs. We introduced the Snapdragon X2, an expansion of our second generation platforms purpose built for the enterprise and commercial segment.
The X2 is powered by the third generation Qualcomm Orion CPU which delivers up to 35% faster single core performance and up to 3.5 times faster multicore performance compared to the competition in previous generations. Our Hexagon NPU provides up to 5.7 times and 3.4 times faster inferencing versus competitors NPU and GPU respectively. 18 Snapdragon powered PCs debuted at CES from ASUS, HP, Lenovo and Microsoft. The ASUS ZenBook A16 was one of the standouts featuring the Snapdragon X2 Elite Extreme and is the fastest Snapdragon powered laptop to date. It features our 18 core third generation Orion CPU, an 80 tops hexagon NPU for AI workloads in an Adreno GPU delivering up to a 2.3 times improvement in performance per watt versus the prior generation.
XToolite Extreme enables desktop class performance, advanced graphics and more than 21 hours of battery life and an ultra light 16 inch form factor. We remain on track to commercialize 150 Snapdragon X Power PCs this year. Demand for our Snapdragon digital chassis solutions remains incredibly strong and we announced several collaborations with top automakers, OEMs and service providers. During the quarter we signed a letter of intent for a long term supply agreement with Volkswagen Group which spans many brands including Audi and Porsche. Under this intended agreement, we would provide advanced infotainment and connectivity capabilities powered by our digital chassis across multiple vehicle segments, price tiers and markets.
We would also serve as the Group’s primary technology provider for its software defined vehicle architecture developed through its joint venture with Rivian Automotive. In addition, we’re collaborating with the Group’s Automated Driving alliance formed by cariad and Bosch to accelerate development of highly automated driving systems. We’re very proud that the newly launched RAV4, Toyota’s top selling vehicle globally and one of the best selling cars worldwide, is powered by our Snapdragon Cockpit platform delivering premium AI enabled in vehicle experiences. We also announced new and expanded collaborations with Hyundai Mobis, Deep Motor, LI Auto, Zeekr, Great Wall Motors, NIO and Cherry, bringing our total design wins for Snapdragon elite platforms to 10 programs in industrial IoT.
We continue to expand our portfolio of advanced computing connectivity and AI solutions for for an increasing number of verticals. With the recent acquisition of Augentix, we augmented our Dragonwing Vision portfolio and Qualcomm Insight platform with its AI based Low power Image Signal processing solution. At ces we also introduced two new Dragon Wing processors delivering on device intelligence for security focused drones, smart cameras and industrial vision A.I. tVs, media hubs and video collaboration systems. Additionally, the launch of our new Dragon Wing IQX series marked our entry into the industrial PC space with best in class compute performance and efficient edge AI engineered for PLCs, advanced HMIs, edge controls and panel and box PCs.
This quarter we formally announced our expansion into advanced robotics and introduced a full suite of robotics technologies and solutions including the Dragon Wing IQ 10 series. Our general purpose robotics architecture supports advanced perception and motion planning using models such as VLAs and VLMs, allowing robots to perceive, reason, adapt and act in real world environments. As part of A complete hardware to software stack, iQ10 is designed to accelerate commercialization of household industrial and humanoid robots. It combines heterogeneous edge compute, safety grade SOCs and end to end AI. In a short period of time we have engaged with Advantech, Applux AutoCore Booster, Figure, Kuka Robotics, Robotech AI and VinMotion to help define the compute architecture for their robotics and humanoid platforms.
The physical AI in robotics space is experiencing rapid growth driven by advances in edge AI and sensor fusion and Qualcomm is one of the best positioned companies to enable this next frontier of AI. We will do this by leveraging our strengths in high performance, power efficient computing, connectivity and edge integration intelligence as well as our experience in adas and Autonomy, industrial and safety grade silicon and perception and sensing technologies. Many of the drivers of our leadership in automotive are applicable to advanced robotics. Finally, we continue to develop our data center solutions and engage with leading hyperscalers, cloud service providers, sovereign AI projects and other global partners.
We remain encouraged by the positive feedback on our CPU and innovative AI processing and memory architecture for next generation inferencing data centers. Additionally, the recent developments in the industry validate Qualcomm’s view of the importance of specialized and power efficient AI platforms as inferencing becomes the key driver of data center growth. In fiscal Q1 we completed the Alphawave Semi acquisition, adding high speed wire connectivity technologies to further strengthen our platforms. We also acquired Ventena Microsystems, reinforcing our leadership and commitment to expanding the RISC V standard and ecosystem and development of our high performance RISC V CPU for data center workloads.
We look forward to providing more information including an update on our roadmap and at our next investor event. We’ll also share our progress in robotics, automotive and next generation autonomy industrial IoT and 6G. I will now turn the call to Waakash.
Akash Palkhiwala — Chief Financial Officer
Thank you Cristiano and good afternoon everyone. Let me begin with our strong first fiscal quarter results. Total revenues of $12.3 billion and non GAAP EPS of $3.5 were both records with non GAAP EPS coming in at the high end of our guidance. QTL revenues of $1.6 billion and EBIT margin of 77% were at the high end of our guidance. Driven by higher units and favorable mix. We delivered record revenues in QCT of $10.6 billion, including strong year over year growth across automotive and IoT. QCT handset revenues reached a record $7.8 billion reflecting the benefit of recently launched flagship smartphones.
QCT IoT revenues of $1.7 billion grew 9% year over year driven by demand across consumer and networking products. In QCT Automotive we delivered another record quarter with revenues growing to $1.1 billion up 15% versus the year ago period on increased demand for our Snapdragon digital chassis platforms. QCT ebit margin of 31% came in line with expectations exceeding our long term target of 30%. Lastly, we returned $3.6 billion to stockholders, including $2.6 billion in stock repurchases and $949 million in dividends. Before turning to guidance, I’d like to address the impact of the memory industry dynamics on our financial outlook.
The fundamentals of our handset business remain favorable with a stable global economic environment, total handset shipments exceeding expectations in the December quarter, especially in the premium and high tier, and a strong design WIN pipeline for our Snapdragon chipsets. However, increasing demand for memory solutions in AI data centers is driving near term uncertainty in memory supply and pricing for handset OEMs. As a result, the handset OEMs are taking a cautious approach in planning their business. We’ve seen several OEMs, especially in China, take actions to reduce their handset build plans and channel inventory. Our guidance for the upcoming quarter reflects the latest signals from these customers which includes reduced chipset orders aligned with their scaled back expectations for build plans.
We expect to return to our prior run rate and growth trajectory for QCT handset revenues when these conditions normalize. Now turning to guidance in the second fiscal quarter, we are forecasting revenues of 10.2 billion to $11 billion and non GAAP EPS of $2.45 to $2.65. In QTL, we estimate revenues of 1.2 to $1.4 billion and EBT margins of 68 to 72% reflecting normal sequential trend. In QCT we expect revenues of 8.8 to $9.4 billion and EBITDA margins of 26 to 28%. We are forecasting QCT handset revenues to be approximately $6 billion. As a result of the impact of memory constraints I just outlined, we anticipate QCT IOT revenues to grow by low teens percentage versus the year ago period driven by growth across industrial and consumer products in QCT automotive following another record quarter, we expect year over year revenue growth to accelerate to greater than 35% in the second fiscal quarter.
Lastly, we expect non GAAP operating expenses to be approximately $2.6 billion in the quarter. The sequential increase is driven by typical calendar year resets for certain employee related costs and completion of our acquisition of Alpha Wave to further strengthen our platforms for next generation AI data centers. In closing, we are pleased with our strong first quarter performance delivering record results across the following metrics total company revenue, non GAAP eps, QCT revenues, QCT handset revenues and QCT automotive revenues. While near term QCT handset guidance is being impacted by memory industry dynamics, the underlying fundamentals around consumer demand for handsets and Snapdragon product leadership remain strong.
Our second quarter guidance reflects the continued revenue acceleration across automotive and IoT with their combined growth outpacing the run rate required to achieve our long term revenue targets. Our product announcements and strong Customer engagement at CES 2026 further demonstrated our momentum across multiple growth vectors. In automotive we have reinforced our technology leadership with 10 design wins for Snapdragon Ride Elite and Cockpit Elite, eight global programs for Snapdragon Ride Flex and continued success in building an automated driving stack ecosystem for our customers. In robotics, we announced a full suite of technologies including the industry leading Dragon Wing IQ 10 chipset platform and engagement with several players in the ecosystem to drive commercialization of our products.
In industrial we showcased our ability to serve a wide spectrum of customers from global enterprises to local developers with an expanded portfolio that offers advanced edge computing and AI solutions across industry verticals. This concludes our prepared remarks. Back to you Mauricio.
Mauricio Lopez-Hodoyan — Analyst
Thank you Koch Operator. We’re now ready for questions.
Questions and Answers:
operator
Thank you. To cue a question, press Star, then the number 1. To draw your question press star. 2. If you’re using a speakerphone, please pick up your handset before pressing the numbers. One moment please for the first question. First question comes from the line of Joshua Buchalter with TD Cowan. Please proceed with your questions.
Joshua Buchalter
Hey guys, thank you for taking my question. You know I wanted to start with the handset outlook. Any other factors that are that are driving the weakness beyond the memory pricing was good to hear the reiterated Samsung share, but I think you know, most importantly, you know how should we think about the TAM for the year and do you feel like this inventory correction is sort of the last shoe to drop in the March quarter that you’re seeing? Thank you.
Cristiano R. Amon
Thanks Joshua for the question I will start and I’ll ask Akash to add more color. It’s 100% related to memory actually I’ll say the macroeconomic indicators has been strong. We look at the handset demand has been strong. I think because of our licensing business we have a good understanding of the overall demand. We look at sell through data also very strong but unfortunately I think what we saw in Q1 as we go to Q2 is 100% size by the availability of memory. So as we all know as all the indications shows that DRAM availability for consumer electronics, especially handsets is actually down bias on a year over year because of the prioritization of HBM for data centers.
I think the market is going to be sized by that and I think we saw the reaction right away from our customers are adjusting. I think their build production to the memory they have available. And I don’t know if Akash, you’d like to add some more color to that?
Akash Palkhiwala
No, I think that covers it.
Joshua Buchalter
Okay, thank you, Cristiano. I guess to follow up, I mean just backing into the guidance you just gave on qct, I mean that auto number is implying a pretty sharp acceleration sequentially. You know, is this some of the ADAs wins that you’ve talked about previously layering in and maybe you could speak to to both the drivers and the durability of the higher watermark that you’re guiding to. Thank you.
Cristiano R. Amon
No, thank you very much. As we have said consistently, I think the pipeline we have built in automotive it is continue to translate into revenue, especially as new cars ramp and new cars launches. And I think that’s why we continue to see record revenues in automotive. We don’t move with the industry. You move primarily with our share gains. I think we’re very excited about the trajectory. I’ll say we feel good about all the projections we have made about the size of the revenue. When you look at our targets for fiscal 29, it’s all going the right direction and we continue to have more design wins.
I think our position in the industry becomes stronger. I think with the platform we’ve seen traction with flex, which both, you know, the ability to bring adas and digital cockpit in the same chipset across other tiers. We’re seeing now some of the major, I think volume drivers achieving sop. We did announce a very broad partnership with Volkswagen Group and to your comment, it is correct we’re getting more traction with ADAS. Once OEMs were able to see the stack that we launched with BMW that was an option for them, we’re seeing interest and those things are progressing very well.
operator
The next question is from the line of Sumik Chatterjee with JP Morgan. Please receive your questions.
Samik Chatterjee
Hi, thanks for taking my questions. I have one on data center and one on the smartphone side, maybe on the data center. Cristiano, if you can give us an update in terms of the progress with your customers on that front front. And given sort of the volatility we are seeing in memory, is that sort of being more disruptive to making progress with your customers or instead is it sort of augmenting some of the pace of the discussions, given sort of big focus on that side of the sort of bill of materials as well? And I have a follow up.
Thank you.
Cristiano R. Amon
Thank you so much. Same. So let me start with the Data Center. Look, I think everything is going in the way we have planned. I think the only public, I think customer announced today is humane, that is progressing well. We have started shipping, we have been working with them in ISV on third party workloads. We’re encouraged about the progress our teams are doing on our roadmap. We continue to get very positive feedback, I think from broad engagements. You would imagine that a company at our size will be engaging conversations with some of the largest, you know, hyperscalers and cloud service providers in the industry.
We have something very unique. We always said we have a dedicated platform for the disaggregated data center. We do very, very well in certain workloads such as decode with our different approach to compute and memory. If anything, I think the transaction of GROK kind of validates that you, when you think about this aggregated data center, you have specialized hardware versus you know, just a GPU that would everything and we’re getting good traction. Where we really focus right now is on execution. I think we had identified some of the milestones. We’re executing on two fronts. It’s cpu, we added a RISC V CPU now to a roadmap in addition to Orion which is ARM compatible And we’re executing on AI250 with our new memory architecture.
And we will provide details of our roadmap in our investor events. But so far everything, it’s on track. We still restate that. We expect 27 to start showing in revenues and we feel good. We’re just going to keep executing that and I don’t know. Akash, you want to add anything before I go to memories?
Akash Palkhiwala
No, I think the only thing I’ll add on Data center is we’ve mentioned previously that we expect this to be a multibillion revenue opportunity in a couple of years. And so everything that Cristiano outlined kind of just reiterates that opportunity for us.
Cristiano R. Amon
Okay, so the memory thing and look, I think we’re going to see how this thing played out. I’m going to give you maybe a little bit of the dynamics when we step back and we look at the business, we’re very, very happy with everything in the business. We just wish there was more memory and you know, enhances get hit the most given its scale and its cycle time. So we, we expect that the impact is going to be more muted in other business. For example, automotive is a little bit less sensitive to to memory price increases.
As you pointed out the impact on handsets in the bond. Having said that, when we go back to situations that we saw in the past, I think the best proxy is what happened during the pandemic. The premium and high tier has proven to be more resilient to price increases and we think that that may be a factor that play out. But the most important thing is to that issue is not just the price. The issue is just availability. So I think the memory availability will determine the overall size of the Henson market. OEMs are very likely to prioritize premium and high tier.
How they have done in the past, that could be less impacted. And we will see the reaction on consumers as their price increases for the finished product. I do, I do stand by what I said. I think the whole fiscal year mobile handset size will be determined by memory availability. And we’re just going to monitor this on a quarter as in those phones get repriced tiers kind of shift towards high end premium and we’ll see what happen in the marketplace.
Samik Chatterjee
If I just can quickly follow up on that. Christian, on the OEMs prioritizing the higher tier, I mean within that higher tier, do you expect them to downshift in terms of the tiering of the chipsets or the SOCs that they go for just to be able to manage their overall cost in relation to what they need to pass on to consumers. And that’s it from me. Thank you.
Akash Palkhiwala
So as a general trend and I, you know, I wanted to emphasize what we saw in the quarter, you know, yes, there is a memory shortage, but when there was memory we saw the results, was very good, consumer demand was very good. And what we have seen, which is it’s been going on like for years now, the premium tier continues to expand in a market that is being relatively flat, which is the handsome market. We have seen growth in the, in the mix where the prementir are expanding. So I think that’s a factor that is likely going to drive OEMs to continue to be focused on the premon tier.
I did mention one thing on my prepared remarks which is a dual flagship strategy that we have adopted and that has been also very well received I think by the market. You probably see that when you think of different OEMs, how they have like ultra or different categories and they have multiple tiers of the premium tier, I expect that’s going to play. But overall our hope is that the premium tier will be more resilient. Granted the memory that is available is the memory that’s available.
operator
Next question comes from the line of Ross Seymour with Deutsche Bank. Please proceed with your questions.
Ross Seymore
Hi guys. Thanks for may ask a question. You mentioned a couple different things on the handset side for my first question, but I guess what it comes down to is what percentage of your handset business do you think is in China, considering that you cited them as being especially hit. And do you think normal seasonality is likely to occur after this step down in the March quarter or is that too difficult to tell?
Akash Palkhiwala
Yeah, I think on your first question, Ross, we don’t really kind of break down by regions, but if you think about the percent of volume that is driven by the Chinese OEMs, but then adjust it down for the tiers that they play in so our exposure would be less than what you would just see based on the units.
Ross Seymore
And the seasonality side.
Akash Palkhiwala
The seasonality on the handset side, I think you should think of the seasonality in the demand from the consumers is going to be consistent with what we’ve seen in the past. I think consumers wait for premium tier launches and there is significant purchases that happen when that plays out. I think to Cristiano’s earlier point, it’s really a question of how supply aligns against the demand. We don’t have a demand issue. As we said earlier, the demand continues to be strong, our design wind pipeline continues to be strong and then it’s just a question of supply alignment with it over the next few months.
Ross Seymore
And then I guess just for my follow up on the OPEX side of things, you gave a good explanation why it’s popping up a bit in the March quarter. After that, are there any adjustments given what you’re saying in the memory side, or are you guys kind of investing right through this?
Akash Palkhiwala
I think it’s the way we’ve guided the March quarter is a reasonable way of thinking about the rest of the year. I think our focus, as we’ve said before, is the following framework on OPEX really kind of reduce the investments in mature businesses and use it to fund the diversification priorities. And then we have These acquisitions including AlphaV, kind of driving incremental expense and investment in data center, but it’s really just focused on those things as we’ve been extremely disciplined over the last several years and grown OPEX significantly slower than revenue and gross profit, that framework for our operating plan doesn’t change going forward.
Ross Seymore
Thank you.
operator
The next question is from the line of Stacy Raskon with Bernstein Research. Please receive your questions.
Stacy Rasgon
Hi guys. Thanks for taking my questions. For the first one, I want to ask that seasonality question a different way. And I think it was really getting a June, like usually just seasonally. I know your revenue stepped down in June. So you’re guiding 6 billion on handsets. You’re guiding 6 billion in March quarter, which is down about 13% year over year. Are you expecting, just given what you’re seeing in the memory market right now, a similar and what can be supplied a similar type of year over year growth like for hence that’s in June, or do you think this like $6 billion number, given it is sort of supply constrained is like a good number to have given the current supply that is out there until things normalize.
Like just how do we think about June in the context of March given the March decline in the context of the memory situation?
Akash Palkhiwala
Yeah. So Stacy, we’re given the uncertainty in the market, we’re obviously not guiding beyond the second quarter at this point. But as Cristiano said earlier, when you think about the demand fundamentals, they’re strong and really it’s a question of how supply aligns against it. And we expect that supply will really define the financial forecast for the year. For the rest of the fiscal year, specifically kind of between quarters, you should think of March as a reasonable way to model June as well is really kind of similar seasonality profile that you would have seen in other years.
Stacy Rasgon
Got it. Thank you. And for my follow up, I want to ask just about qtl. So again it sounds like the demand is there, but we just don’t know how many handsets are going to be able to be built. I guess in that context, how are you thinking about sort of like just a typical QTL run rates in the various quarters through the year? Do you think they’re similar to what we’ve seen in the past? I think your guidance is maybe in line to maybe slightly below what would we typically see for March. Yes, Stacy, I mean, how do you think about that?
Akash Palkhiwala
Yes, Stacey, it’s Akash. So let me try to address it a couple of ways. I think first is just strong performance in December quarter. We saw units handset units higher than expectation in the quarter. I think as you go into the next quarter we are guiding QTL just slightly below what we did last year. So pretty consistent with with trend. But of course that’s subject to supply considerations as you think about the full year at this point given the supply, we have a negative bias on units but really we’re going to have to see how it plays out as we go through the next several months.
Stacy Rasgon
So maybe a touch below those similar to what we saw in March seems. Reasonable given what we know right now.
Akash Palkhiwala
I think that’s the framework that I outlined is the way we are thinking about it.
Stacy Rasgon
Got it. Okay, thank you guys.
operator
The next question is from the line of Timothy Accurie with ubs. Please proceed with your questions.
Timothy Arcuri
Thanks a lot. Akatash, I wanted to ask about the OP margin guidance in QCT. The drop through is more than 100%. I mean it’s not surprising that margins would come down, but they seem to be coming down pretty quickly, like faster than I would have thought. Is there something else going on there? I know that wafer costs are going up and BDTech said on their call that they’re still gaining share at the high end. Is there something going on to make the drop through more than a 100% on the up line for March?
Akash Palkhiwala
No, there isn’t, Tim. I think we’re expecting gross profit to be large gross profit margin to be largely in line with the December quarter. And so it’s just the scale of the revenue coming through and the OPEX guidance that we provided.
Timothy Arcuri
Okay.
Cristiano R. Amon
I just want to add one thing. No, look, we saw how I think the other company reported as well. Very consistent view I think on what we’re seeing sequentially on the quarter. It’s just the whole market is kind of being adjusted to the new build out reality. So we actually don’t see anything other than that and remind you of the seasonality that we always have regardless of this memory issue, a lot of the premium tier launch in Chinese New Year. So you actually normally see some of the Chinese go down on a sequential basis because they just billed for the premium launches.
Timothy Arcuri
Okay, thanks. And then do you have any update on the Huawei license? I know we’re still waiting for it and maybe what’s the sticking point? And is there risk? We talked about this before, but is there risk and precedent for for the big customer if you don’t sign a license with Huawei? Thanks.
Alex Rogers
Thanks for that. This is Alex. Really no update on the Huawei discussions? The discussions are still underway in terms of sticking points, I really can’t get into what are confidential discussions. I see These two sets of negotiations, as you know, fairly distinct, actually significantly distinct, operating on different paths and as you know, with the other company, whenever we see a renewal date on the horizon, we start discussions very well in advance. And so that’s underway and we don’t have any update on that.
Timothy Arcuri
Okay, thank you.
operator
The next question is from the line of CJ Muse with Cantor Fitzgerald. Please proceed with your question.
C.J. Muse
Yeah, good afternoon. Thank you for taking the question. I guess curious, you know, obviously the DRAM makers have been talking about satisfying only 50 to 70% of the demand and they’re highlighting, you know, shortages into 2028. So curious, you know, how you’re planning for, you know, a situation where this could be sustained. You know, are your Chinese customers looking to design in CXMT and you know, could you get qualified inside of that? I would assume your business with Samsung would be strong given their internal supply from DRAM and as well as your supply chain in terms of, you know, your wafer commits to tsm.
I guess. How are you managing all of that given all this great uncertainty?
Cristiano R. Amon
Look, very good question and I’m going to, I know it’s obvious, but just in case, I’m going to use this opportunity clarification. For handsets, we don’t buy memory. I think there are some memory that gets stacked on modems, but the majority of the memory is purchased directly by our customers. You should expect, given our scale, we’re probably among the first to be qualified. With every memory provider, every single memory. You can imagine CXMT and other smaller companies, we have been qualified and also we have flexibility versus some of the other companies. If you actually double click, you’re going to see we have flexibility about working with new versions of memory as well as older version of memory.
On our platforms we have multi generation memory controllers. So from a platform perspective, we’re going to work with whatever is available. I think that’s kind of the approach we always took when you have shortage. So the second part of the question, which is the bigger question. Look, the trend I think of growth in the data center continues and it’s pretty obvious, I think the memory vendors have prioritized the build out of hbm and I think some of the data that you just provided is kind of what we see. As I said before, it’s very clear indication that as of today the availability of memory for consumer electronics year over year has been below the demand.
And we see that in handsets you start to see commentary on gaming consoles and other consumer electronics devices. We can’t really predict if this will continue for 27 or 28. I think there’s capacity build out in plans. It all depends also how how much the trend on data center continues to accelerate. It is fair to assume at this point that for the fiscal year the size of the handset market, which one that is probably getting the blunt of the impact in our business is going to be defined by the availability of dram.
Akash Palkhiwala
And CJ, on your second part of your question on wafers for leading nodes, as you know, kind of leading nodes are constrained on the wafer side as well. But we have great relationships with our suppliers and so we’re confident that we’ll have enough wafers to address the demand.
C.J. Muse
Thank you. And I guess as a follow up, curious if we do see a mix shift higher Snapdragon, but unit volumes lower, how should we think about that impacting your QCT EVT margins?
Akash Palkhiwala
Yeah, I mean as you know, well cj, we do very well in the premium and high tiers and so as the volume shifts up, that is usually a benefit for us.
operator
The next question is from the line of Ben Rice with Melius Research please to see with your questions.
Ben Reitzes
Yeah, hey guys, wanted to just kind of keep going on the memory side. You know, as we, you know, kind of look at Apple and their propensity for double digit growth, maybe even the whole year, it just seems like they are going to continue to get disproportionate, you know, share of the available dram. Is it possible, you know, how do you kind of navigate that with all your partners? And you know, I guess the question would be does that add to some of the uncertainty that could linger into the next fiscal year with one vendor, you know, getting disproportionately this kind of unit growth and obviously the kind of allocation they get.
Cristiano R. Amon
Look, it’s hard to make prediction. But I will also probably remind you that we have another large customer, they also have the memory division as well. So I think it’s as a general statement, I think it is, it’s probably a fact that OEMs with larger scale will have probably better ability to, you know, have enough memory and they will make priority calls than OEMs with smaller scale. But I think that this problem is probably going to be industry wide. I don’t think any OEM has been immune in general. I think the statements we have seen broader in the industry is not a demand issue, it’s all supply constraint.
Ben Reitzes
Okay, well look, there’s been a lot of questions on that. Just my next one, I just Wanted to double click on the data center and you know, I know you got asked about whether there’ll be memory available for that. But just in terms of the recent events that validate, you know, I believe the decoding aspect of your solution. I was wondering if you could just, you know, provide a little bit of an update there. What’s happened since Grok with Nvidia and you know, how are discussions going beyond humane and just that overall trend and your ability to play.
Thanks.
Akash Palkhiwala
Look. Here’S what I can say without I think front running our investor event. First of all, I think we are, I would describe it like this. I think there’s a lot of companies right now they recognize, I think the technology and the technical capability of Qualcomm. I think our track record on technology execution has been very successful and I think we also understand some of the dynamics on compute and memory. I think given, you know, the breadth of our IP roadmap, we’re probably one of the few companies that go from sub 5 watts to now all the way to 500 watts.
And we have said in the past as we’re going to enter this market, we needed to kind of intercept where the market is going and we’re going to be really, really focus on inference and especially the disaggregated. I think you’re pointed to the right way. I think for example decode applications. We believe we’re incredibly competitive not only from a power consumption but also from our overall tco, compute density, memory density and we really focus on execution. The feedback we have been given from a lot of the large companies on the technical side and on the product side is very positive.
Now the ball is in our courts to execute, have hardware available and kind of show the results and we’re just going to be continue doing that.
operator
Thank you. That concludes today’s question and answer session. Mr. Ramon, do you have anything further to add before joining the call?
Cristiano R. Amon
The only thing I want to add, look, you know it’s unfortunately I think that the whole sector is impacted by memory but we remain incredibly encouraged about. I think the foundation was set up at the company to be relevant to many industries. We are on track to the commitments we made on the diversification revenues for the company for fiscal 29. We have in a record time, I think being having a very good traction in the future opportunity of robotics, physical AI and a robot is the best example I can provide other than autonomous driving of what edge AI is.
And we believe that we are creating really a completely different company with relevance in many many markets. And what we continue, we’ll just continue to execute, I think, on, on a roadmap. I would like to thank all of our partners, suppliers. They’re dealing with us in this memory shortage and our employees. And we look forward to talking to you next quarter.
operator
Ladies and gentlemen, this concludes today’s conference call. You may now disconnect.