QCOM · 10-Q · 2026Q2 · Full report

Supply Chain and Inventory

QUALCOMM INC/DE · 2026-07-29 · Importance 40 · Surprise 42

The semiconductor industry is experiencing broad-based input-cost increases and capacity constraints spanning wafer fabrication, assembly, test, advanced packaging, memory and other materials. Qualcomm is seeing higher product costs from key suppliers, while constrained components, manufacturing capacity or related services could limit its ability to satisfy customer demand and cause lost or delayed revenue. Customer demand effects from memory constraints also increased inventory during the first nine months of fiscal 2026, and management noted potential exposure to excess or obsolete inventory or reserve charges if demand estimates deteriorate.

Key facts

• Net changes in operating assets and liabilities for the first nine months of fiscal 2026 negatively impacted operating cash flows primarily driven by an increase in inventory reflecting certain customer demand impacts from memory supply constraints. source
• The semiconductor industry is experiencing a broad-based increase in input costs and capacity constraints across wafer fabrication, assembly, test, advanced packaging, memory and other materials, and as a result Qualcomm continues to see increased product costs from certain key suppliers which could negatively impact margins. source
• The decrease in QCT revenues in the third quarter of fiscal 2026 was in part due to customers adjusting build plans to reduce inventory levels as a result of the negative effects of recent memory supply constraints and related price increases. source