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# Qualcomm's Inventory Jumps To $8.64 Billion As Handset Sales Fall And Cash Drops
- URL: https://www.bullished.co/qualcomms-inventory-jumps-to-8-64-billion-as-handset-sales-fall-and-cash-drops-d75c9601/
- Published: 2026-11-04T22:13:15.000Z
- Updated: 2026-11-04T22:13:14.000Z
- Description: Revenue slipped to $43.12 billion while the chipmaker's cash fell to $7.68 billion and supplier commitments climbed to $18.6 billion.
- Author: Matteo Parrino
- Tags: SEC Filings, QCOM, Industry: Technology

Qualcomm, which designs the chips behind smartphones, cars and data center gear, ended fiscal 2026 holding [$8,640 million of inventory](https://www.sec.gov/Archives/edgar/data/0000804328/000080432826000128/qcom-20260927.htm?ref=bullished.co), up from $6,526 million a year earlier, according to its annual report filed Wednesday. Revenue fell to $43,120 million from $44,284 million over the same stretch, and the company says it built stock to secure supply.

## Stockpiling to secure supply

The cash flow statement shows a $2,049 million outflow for inventory in fiscal 2026, against $138 million in fiscal 2025\. The filing says the build was meant to secure supply and mitigate disruptions from supply constraints. The [prior 10-K](https://www.sec.gov/Archives/edgar/data/0000804328/000080432825000085/qcom-20250928.htm?ref=bullished.co) pointed instead to a rise in receivables as the main drag on operating cash flow.

Purchase obligations, mostly commitments to chip suppliers including multi-year capacity deals, reached $18.6 billion, with $13.8 billion expected to be paid within 12 months. A year earlier the figures were $15.1 billion and $10.5 billion.

Qualcomm says it is raising product prices to cover higher supplier costs, but expects the full gross-margin benefit only in the second half of fiscal 2027\. The company's gross margin fell to 53% from 55%.

## Handsets shrink, cars grow

Handset revenue in the QCT chip segment fell to $24,072 million from $27,793 million. The company attributes the drop to customers cutting build plans to reduce their own inventories after memory supply constraints and price increases. It expects those constraints to hurt demand from several handset makers going forward.

Automotive revenue rose to $6,004 million from $3,957 million, and the Internet of Things line rose to $7,132 million from $6,617 million. The filing also repeats that Apple is expected to rely mainly on its own modems.

## Thinner cash, heavy returns

Cash, equivalents and marketable securities fell to $7,681 million from $12,478 million. A year earlier, $2.3 billion of that was restricted cash set aside to pay for the Alphawave acquisition. The company spent $7.8 billion on buybacks and $3.9 billion on dividends in fiscal 2026, and $19.6 billion remained authorized for repurchases.

Debt stood at $15.1 billion, including $2.0 billion of notes maturing in 2027 and $499 million of commercial paper. Net income rose to $13.6 billion, helped by a $5.7 billion tax benefit from releasing a valuation allowance, which the company first described in its [quarterly report filed in April](https://www.sec.gov/Archives/edgar/data/0000804328/000080432826000061/qcom-20260329.htm?ref=bullished.co).

The company expects Data Center revenue growth to begin in the first quarter of fiscal 2027, as shipments ramp under custom silicon agreements with large hyperscale customers.

### Sources

- [10-K Filing — Qualcomm (QCOM)](https://www.sec.gov/Archives/edgar/data/0000804328/000080432826000128/qcom-20260927.htm?ref=bullished.co) — SEC EDGAR
- [10-K Filing — Qualcomm (QCOM), FY2025 filed 2025-11-05 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0000804328/000080432825000085/qcom-20250928.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Qualcomm (QCOM), filed 2026-04-29 (earlier disclosure)](https://www.sec.gov/Archives/edgar/data/0000804328/000080432826000061/qcom-20260329.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Qualcomm (QCOM), filed 2026-07-29 (earlier disclosure)](https://www.sec.gov/Archives/edgar/data/0000804328/000080432826000086/qcom-20260628.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, qcom092726erex991.htm) — Qualcomm, filed 2026-11-04](https://www.sec.gov/Archives/edgar/data/0000804328/000080432826000127/qcom092726erex991.htm?ref=bullished.co) — SEC EDGAR
- [Qualcomm: Fiscal Q4 Earnings Snapshot](https://finance.yahoo.com/markets/stocks/articles/qualcomm-fiscal-q4-earnings-snapshot-211435077.html?ref=bullished.co) — Associated Press
- [Qualcomm (QCOM) earnings report Q4 2026](https://www.cnbc.com/2026/11/04/qualcomm-qcom-earnings-report-q4-2026.html?ref=bullished.co) — CNBC
- [Qualcomm Earnings Come as Smartphone Sales Slump and Data Center Ambitions Grow](https://www.barrons.com/articles/qualcomm-earnings-stock-price-e0d72311?ref=bullished.co) — Barron's
- [Ganancias de Qualcomm en el cuarto trimestre: nuevos mercados elevan las previsiones de ventas por encima de las estimaciones](https://es.qz.com/qualcomm-ganancias-pronstico-de-ventas-nuevos-mercados-110426?ref=bullished.co) — es.qz.com
- [Qualcomm to report Q4 earnings amid slowing smartphone, PC sales](https://finance.yahoo.com/technology/article/qualcomm-to-report-q4-earnings-amid-slowing-smartphone-pc-sales-173320120.html?ref=bullished.co) — Yahoo Finance