What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2025-11-05 compared with 2024-11-06 · 270 added, 302 removed, 1021 unchanged (36% of the section changed)

20 unchanged sentences

Other Information

On September 12, 2024 , Cristiano Amon , our President and Chief Executive Officer , acting as trustee on behalf of his family trust, terminated the trust’s Rule 10b5-1 trading arrangement (as defined in Item 408 of Regulation S-K), which provided for the sale of up to 75,000 shares of our common stock and was previously scheduled to terminate on September 30, 2025, and adopted a new Rule 10b5-1 trading arrangement.

The new plan provides for the sale of up to 60,000 shares of our common stock and is scheduled to terminate on September 30, 2025.

On September 11, 2025 , Heather Ace , our Chief Human Resources Officer , acting as trustee on behalf of her family trust, adopted a Rule 10b5-1 trading arrangement (as defined in Item 408 of Regulation S-K) providing for the sale of up to 12,800 shares of our common stock.

The plan is scheduled to terminate on November 18, 2026.

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

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Number Exhibit Description Form Date of First Filing Exhibit Number Filed Herewith

2.1 Agreement and Plan of Merger, dated as of October 4, 2021, by and among QUALCOMM Incorporated, SSW HoldCo LP, SSW Merger Sub Corp and Veoneer, Inc.

8-K 10/4/2021 2.1

3.1 Amended and Restated Certificate of Incorporation .

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8-K 3/7/2024 3.2

4.1 Indenture, dated May 20, 2015, betwe en Q UALCOMM Incorporated a nd U.S.

4.1 Indenture, dated May 20, 2015, between QUALCOMM Incorporated and U.S.

Bank Trust Company, National Association (as successor in interest to U.S.

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8-K 5/21/2015 4.10

4.5 Form of 4.800% Notes due 2045.

8-K 5/21/2015 4.10

4.5 Officers’ Certificate, dated May 26, 2017, for the Floating Rate Notes due 2019, the Floating Rate Notes due 2020, the Floating Rate Notes due 2023, the 1.850% Notes due 2019, the 2.100% Notes due 2020, the 2.600% Notes due 2023, the 2.900% Notes due 2024, the 3.250% Notes due 2027 and the 4.300% Notes due 2047.

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8-K 5/9/2022 4.4

Number Exhibit Description Form Date of First Filing Exhibit Number Filed Herewith

4.20 Officers’ Certificate, dated November 9, 2022, for the 5.400% Notes due 2033 and the 6.000% Notes due 2053.

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11/9/2022 4.4

Number Exhibit Description Form Date of First Filing Exhibit Number Filed Herewith

4.23 O fficers ’ Certificate, dat ed May 2 1, 2025, for the 4.500% Notes due 2030 , the 4.750% Not es due 20 32 and the 5.000% Notes due 2035.

5/22/2025 4.2

4.24 F orm of 4.500% Notes due 2030 .

5/22/2025 4.3

4.25 F orm of 4.750% Notes due 2032.

5/22/2025 4.4

4.26 F orm of 5.000% Notes due 2035.

5/22/2025 4.5

4.27 Description of registrant’s securities.

10-K 11/6/2019 4.15

10.1 Credit Agreement among QUALCOMM Incorporated, the lenders party thereto, the letter of credit issuers party thereto and Bank of America, N.A., as administrative agent, swing line lender and a letter of credit issuer , dated a s of Au g ust 8, 2024 .

8/9/2024 10.1

10.2 Form of Indemnity Agreement between the Q UA LCOMM Incorporated and its directors and officers.

10.2 Form of Indemnity Agreement between QUALCOMM Incorporated and its directors and officers.

10-K 11/4/2015 10.1

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4/30/2025 10.5

10.6 Form of Qualcomm Incorporated 2016 Long-Term Incentive Plan Executive Performance Stock Unit Award Grant Notices and Executive Performance Stock Unit Award Agreement (2021 Form).

10-K 11/3/2021 10.22

10.6 Form of Qualcomm Incorporated 2016 Long-Term Incentive Plan Executive Performance Stock Unit Award Grant Notice and Executive Performance Stock Unit Award Agreement (2022 Form).

2/2/2023 10.23

10.7 Form of Qualcomm Incorporated 2016 Long-Term Incentive Plan Executive Restricted Stock Unit Award Grant Notice and Executive Restricted Stock Unit Award Agreement (2022 Form).

10-K 11/3/2021 10.23

2/2/2023 10.24

10.8 Form of Qualcomm Incorporated 2023 Long-Term Incentive Plan Executive Performance Stock Unit Award Grant Notice and Executive Performance Stock Unit Award Agreement (2023 Form).

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10-Q 5/3/2023 10.15

10.17 Qualcomm Incorporated Non-Executive Officer Change in Control Severance Plan (as amended and restated).

5/3/2023 10.16

Number Exhibit Description Form Date of First Filing Exhibit Number Filed Herewith

10.18 QUALCOMM Incorporated Non-Qualified Deferred Compensation Plan, as amended and restated effective January 1, 2021.

10-Q 2/3/2021 10.16

10.19 Amendment No.

1 to the Qualcomm Incorporated Non-Qualified Deferred Compensation Plan.

10.17 Qualcomm Incorporated Non-Executive Officer Change in Control Severance Plan (as amended and restated).

5/3/2023 10.16

10.18 QUALCOMM Incorporated Non-Qualified Deferred Compensation Plan, as amended and restated effective September 1 , 2025 .

10.19 Qualcomm Incorporated 2025 Director Compensation Plan.

10-K 11/1/2023 10.19

11/6/2024 10.21

10.20 Qualcomm Incorporated 202 6 Director Compensation Plan.

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19 Insider Trading Policy.

21 Subsidiaries of the r egistra nt .

21 Subsidiaries of the r egistrant .

23.1 Consent of Independent Registered Public Accounting Firm.

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104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

(1) We shall furnish supplementally a copy of any omitted schedule to the Commission upon request.

(1) Indicates management contract or compensatory plan or arrangement required to be identified pursuant to Item 15(a).

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Akash Palkhiwala (Principal Financial Officer)

/s/ Neil Martin

Senior Vice President, Finance and Chief Accounting Officer

/s/ Patricia Y.

Senior Vice President and Chief Accounting Officer

November 5, 2025

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Henderson Director November 5, 2025

/s/ Gregory N.

Johnson Director November 6, 2024

/s/ Jeremy (Zico) Kolter

Director November 5, 2025

Jeremy (Zico) Kolter

Livermore Director November 5, 2025

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Jean-Pascal Tricoire

/s/ Anthony J.

Vinciquerra Director November 6, 2024

/s/ Christopher D.

Director November 5, 2025

Christopher D.

Report of Independent Registered Public Accounting Firm

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financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Revenue Recognition – Qualcomm CDMA Technologies (QCT) Customer Incentive Arrangements

As described in Notes 1 and 2 to the consolidated financial statements, the Company’s QCT segment, which recorded revenues of $33.2 billion in fiscal 2024, records reductions to revenues for customer incentive arrangements, including volume-related and other pricing rebates and cost reimbursements for marketing and other activities involving certain products and technologies, in the period that the related revenues are earned.

For certain QCT customer incentive arrangements, there is complexity in applying certain contractual terms to determine the amount recorded as a reduction to revenues.

The amounts accrued for customer incentive arrangements are recorded as a reduction to accounts receivable, net or as other current liabilities based on whether the Company has the intent and contractual right of offset.

Certain amounts recorded as a reduction to revenues for customer incentive arrangements are considered variable consideration and are included in the transaction price primarily based on estimating the most likely amount expected to be provided to the customer.

The principal considerations for our determination that performing procedures relating to revenue recognition of QCT customer incentive arrangements is a critical audit matter are a high degree of auditor effort in performing procedures and evaluating audit evidence obtained related to the completeness and accuracy of reductions to revenues and accruals for QCT customer incentives arrangements recorded in the consolidated financial statements.

Revenue Recognition – Qualcomm CDMA Technologies (QCT) Segment

As described in Notes 1 and 2 to the consolidated financial statements, the Company’s total QCT revenues were $38.4 billion for the year ended September 28, 2025.

The timing of revenue recognition and the amount of revenue actually recognized in each case depends upon a variety of factors, including the specific terms of each arrangement and the nature of the Company’s performance obligations.

Revenues from sales of the Company’s products are recognized upon transfer of control to the customer, which is generally at the time of shipment.

The Company measures revenues based on the amount of consideration the Company expects to receive in exchange for products or services.

The Company records reductions to revenues for customer incentive arrangements, including volume-related and other pricing rebates and cost reimbursements for marketing and other activities involving certain of our products and technologies, in the period that the related revenues are earned.

The principal consideration for our determination that performing procedures relating to QCT revenue recognition is a critical audit matter is a high degree of auditor effort in performing procedures related to the Company’s revenue recognition.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.

These procedures included testing the effectiveness of controls relating to management’s review of and accounting for QCT customer incentive arrangements as well as controls relating to management’s review over the completeness and accuracy of reductions to revenues in fiscal 2024 and accruals for QCT customer incentive arrangements as of the balance sheet date.

These procedures also included, among others, testing the completeness and accuracy of reductions to revenues and accruals for QCT customer incentive arrangements recorded in the consolidated financial statements, and recalculating, on a test basis, reductions to revenues and accruals for QCT customer incentive arrangements based upon customer-specific contractual terms.

These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls over the recording of QCT revenue at the transaction price upon transfer of control to the customer.

These procedures also included, among others (i) testing revenue recognized for a sample of revenue transactions by obtaining and inspecting source documents, such as purchase orders, invoices, proof of shipment, and contracts;

(ii) testing a sample of customer incentive transactions by obtaining and inspecting source documents which included support for the nature of the incentive, amount, and agreement with the customer;

and (iii) confirming a sample of outstanding customer invoice balances as of September 28, 2025 and, for confirmations not returned, obtaining and inspecting source documents, such as purchase orders, invoices, proof of shipment, and subsequent cash receipts.

/s/ PricewaterhouseCoopers LLP

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Cash and cash equivalents $ 5,520 $ 7,849

Restricted cash

Marketable securities 4,635 5,451

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Inventories 6,526 6,423

Held for sale assets — 341

Other current assets 2,435 1,579

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Other intangible assets, net 1,148 1,244

Held for sale assets — 88

Other assets 6,450 8,053

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Short-term debt — 1,364

Held for sale liabilities — 333

Other current liabilities 4,156 4,425

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Long-term debt 14,811 13,270

Held for sale liabilities — 38

Other liabilities 4,911 5,018

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Other (Note 2)

179 862 ( 1,059 )

Total costs and expenses 31,929 28,891 28,032

1 unchanged sentence

Interest expense ( 664 ) ( 697 ) ( 694 )

Investment and other income (expense), net

962 349 ( 372 )

Investment and other income, net

Income from continuing operations before income taxes 12,663 10,336 7,443

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Net income $ 5,541 $ 10,142 $ 7,232

Other comprehensive income (loss), net of income taxes:

Foreign currency translation gains (losses)

121 140 ( 433 )

Net unrealized gains (losses) on certain available-for-sale debt securities 93 54 ( 113 )

Net unrealized gains on derivative instruments

Other (losses) gains

Other comprehensive (loss) income, net of income taxes:

Foreign currency translation gains

Net unrealized (losses) gains on certain available-for-sale debt securities

Net unrealized (losses) gains on derivative instruments

Other gains (losses)

Other reclassifications included in net income ( 31 ) ( 1 ) 77

Total other comprehensive income (loss)

Total other comprehensive (loss) income

( 27 ) 229 380

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Indefinite and long-lived asset impairment charges

Income tax provision less than income tax payments ( 3,064 ) ( 1,269 ) ( 138 )

Income tax provision in excess of (less than) income tax payments

3,980 ( 3,064 ) ( 1,269 )

Share-based compensation expense 2,783 2,648 2,484

Net (gains) losses on marketable securities and other investments

Net gains on marketable securities and other investments

( 381 ) ( 349 ) ( 152 )

Impairment losses on other investments

Other items, net ( 67 ) 25 ( 56 )

( 57 ) ( 67 ) 25

Changes in assets and liabilities:

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Proceeds from other investments 61 88 20

Other items, net ( 36 ) 19 41

Net cash provided (used) by investing activities from discontinued operations

( 1 ) ( 36 ) 19

Net cash provided by investing activities from discontinued operations

Net cash (used) provided by investing activities

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Repayment of short-term debt ( 998 ) ( 799 ) ( 5,566 )

Repayment of debt of acquired company — — ( 349 )

Proceeds from long-term debt 1,487 — 1,880

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Payments of tax withholdings related to vesting of share-based awards ( 1,115 ) ( 932 ) ( 521 )

Other items, net ( 17 ) ( 19 ) ( 34 )

( 11 ) ( 17 ) ( 19 )

Net cash provided (used) by financing activities from discontinued operations

1 unchanged sentence

Effect of exchange rate changes on cash and cash equivalents ( 22 ) 12 30

Net (decrease) increase in total cash and cash equivalents

Net (decrease) increase in total cash, cash equivalents and restricted cash

( 6 ) ( 678 ) 5,428

1 unchanged sentence

7,849 8,527 3,099

Total cash and cash equivalents at end of period (including $ 77 and $ 326 classified as held for sale at September 24, 2023 and September 25, 2022, respectively)

Total cash and cash equivalents at end of period (including $ 2,323 classified as restricted cash at September 28, 2025 and $ 77 classified as held for sale at September 24, 2023)

$ 7,843 $ 7,849 $ 8,527

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587 358 ( 22 )

Other comprehensive income (loss)

Other comprehensive (loss) income

( 27 ) 229 380

Balance at end of period

587 358 ( 22 )

Total stockholders’ equity, ending balance

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Significant Accounting Policies

We are a global technology leader, helping to bring intelligent computing everywhere through the development and commercialization of foundational technologies, including 3G (third generation), 4G (fourth generation) and 5G (fifth generation) wireless connectivity, high-performance and low-power computing and on-device artificial intelligence (AI).

Our technologies and products have helped power the growth in smartphones and other connected devices.

We are scaling our innovations across industries and applications beyond mobile handsets, including automotive and the internet of things (IoT).

We are a global technology leader, helping to bring intelligent computing everywhere through the development and commercialization of foundational technologies, including on-device artificial intelligence (AI), high-performance and low-power computing and advanced wireless connectivity.

Our platforms help power intelligent devices that people and businesses rely on every day across industries and applications from handsets to other areas, including automotive and the internet of things (IoT).

We derive revenues principally from sales of integrated circuit products and through the licensing of our intellectual property, including patents and other rights.

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We operate and report using a 52-53 week fiscal year ending on the last Sunday in September.

Fiscal 2024 included 53 weeks, and fiscal years 2023 and 2022 included 52 weeks.

Our fiscal years for 2025, 2024 and 2023 included 52 weeks, 53 weeks and 52 weeks, respectively.

Our fiscal year for 2026 will include 52 weeks.

Cash Equivalents.

Cash Equivalents and Restricted Cash.

We consider all highly liquid investments with original maturities of 90 days or less to be cash equivalents.

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The carrying amounts approximate fair value due to the short maturities of these instruments.

Restricted cash includes cash that is legally restricted as to withdrawal or usage (Note 9).

Marketable Securities.

Marketable securities include marketable equity securities, available-for-sale debt securities and, from time-to-time, certain time deposits.

Marketable securities include marketable equity securities and available-for-sale debt securities.

We classify marketable securities as current or noncurrent based on the nature of the securities and their availability for use in current operations.

Marketable securities are stated at fair value with all realized and unrealized gains and losses on investments in marketable equity securities and realized gains and losses on available-for-sale debt securities recognized in investment and other income (expense), net.

Debt securities are classified as available-for-sale or held-to-maturity at the time of purchase and reevaluated at each balance sheet date.

The realized and unrealized gains and losses on marketable securities are determined using the specific identification method.

If a debt security has an unrealized loss and we either intend to sell the security or it is more likely than not that we will be required to sell the security before its anticipated recovery, we record an impairment charge to investment and other income (expense), net for the entire amount of the unrealized loss and adjust the amortized cost basis of the security.

If a debt security has an unrealized loss and we either intend to sell the security or it is more likely than not that we will be required to sell the security before its anticipated recovery, we record an impairment charge to investment and other income, net for the entire amount of the unrealized loss and adjust the amortized cost basis of the security.

For the remaining debt securities, if an unrealized loss exists, we separate the impairment into the portion of the loss related to credit factors and the portion of the loss that is not related to credit factors.

Unrealized gains or unrealized losses that are not related to credit factors on available-for-sale debt securities are recorded as a component of accumulated other comprehensive income (loss), net of income taxes.

Unrealized losses that are related to credit loss factors on available-for-sale debt securities and subsequent adjustments to the credit loss are recorded as an allowance for credit losses, which is included in investment and other income (expense), net.

In evaluating whether a credit loss exists, we consider a variety of factors, including the significance of the decline in value as compared to the cost basis;

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Equity investments in common stock or in-substance common stock for which we have significant influence, but not control, over the investee and are not the primary beneficiary of the investee’s activities are accounted for under the equity method.

Our share of gains and losses in equity method investments are recorded in investment and other income (expense), net.

We eliminate unrealized profit or loss related to transactions with equity method investees in relation to our ownership interest in the investee, which is recorded as a component of equity in net earnings (losses) in investees in investment and other income (expense), net.

Non-marketable equity investments (for which we do not have significant influence or control) are investments without readily determinable fair values that are generally recorded based on initial cost minus impairment, if any, plus or minus adjustments resulting from observable price changes in orderly transactions for identical or similar securities, if any.

All gains and losses on investments in non-marketable equity securities, realized and unrealized, are recognized in investment and other income (expense), net.

We monitor equity method and non-marketable equity investments for events or circumstances that could indicate the investments are impaired, such as a deterioration in the investee’s financial condition and business forecasts and lower

Our share of gains and losses in equity method investments are recorded in investment and other income, net.

Non-marketable equity investments that are not consolidated or accounted for under the equity method do not have a readily determinable fair value and are generally recorded based on initial cost minus impairment, if any, plus or minus adjustments resulting from observable price changes in orderly transactions for identical or similar securities, if any.

All gains and losses on investments in non-marketable equity securities, realized and unrealized, are recognized in investment and other income, net.

We monitor equity method and non-marketable equity investments for events or circumstances that

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

valuations in recently completed or anticipated financings, and recognize a charge to investment and other income (expense), net for the difference between the estimated fair value and the carrying value.

could indicate the investments are impaired, such as a deterioration in the investee’s financial condition and business forecasts and lower valuations in recently completed or anticipated financings, and recognize a charge to investment and other income, net for the difference between the estimated fair value and the carrying value.

For equity method investments, we record impairment losses in earnings only when impairments are considered other-than-temporary.

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These derivative instruments generally have maturity dates between one and 24 months.

Gains and losses arising from such contracts that are designated as cash flow hedging instruments are recorded as a component of accumulated other comprehensive income (loss) as gains and losses on derivative instruments, net of income taxes.

The hedging gains and losses in accumulated other comprehensive income (loss) are subsequently reclassified to revenues or costs and expenses, as applicable, in the consolidated statements of operations in the same period in which the underlying transactions affect our earnings.

For foreign currency forward contracts not designated as hedging instruments, the changes in fair value are recorded in investment and other income (expense) , net in the period of change.

Gains and losses arising from such contracts that are designated as cash flow hedging instruments are recorded as a component of accumulated other comprehensive income as gains and losses on derivative instruments, net of income taxes.

The hedging gains and losses in accumulated other comprehensive income are subsequently reclassified to revenues or costs and expenses, as applicable, in the consolidated statements of operations in the same period in which the underlying transactions affect our earnings.

For foreign currency forward contracts not designated as hedging instruments, the changes in fair value are recorded in investment and other income, net in the period of change.

The cash flows associated with such derivative instruments are classified as cash flows from operating activities in the consolidated statements of cash flows, which is the same category as the hedged transaction.

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These swaps are designated as cash flow hedges of forecasted transactions.

The gains and losses arising from such contracts are recorded as a component in accumulated other comprehensive income (loss) as gains and losses on derivative instruments.

When the anticipated debt is issued, any associated swaps are terminated, and the hedging gains and losses in accumulated other comprehensive income (loss) are recorded to interest expense over the term of the hedged portions of the related debt issued.

The gains and losses arising from such contracts are recorded as a component in accumulated other comprehensive income as gains and losses on derivative instruments.

When the anticipated debt is issued, any associated swaps are terminated, and the hedging gains and losses in accumulated other comprehensive income are recorded to interest expense over the term of the hedged portions of the related debt issued.

Gross Notional Amounts:

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Unobservable inputs are inputs that reflect our assumptions about the factors that market participants would use in valuing the asset or liability.

There are three levels of inputs that may be used to measure fair value:

• Level 1 includes financial instruments for which quoted market prices for identical instruments are available in active markets.

• Level 2 includes financial instruments for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument.

• Level 3 includes financial instruments for which fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including our own assumptions.

There are three levels of input that may be used to measure fair value:

quoted market prices for identical assets or liabilities available in active markets.

observable inputs other than quoted prices included within Level 1.

one or more significant, unobservable inputs to derive fair value from valuation techniques.

Assets and liabilities measured at fair value are classified based on the lowest level of input that is significant to the fair value measurement.

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The fair value for interest-bearing securities includes accrued interest.

The fair value of U.S.

Treasury securities and government-related securities, corporate bonds and notes and common stock is generally determined using standard observable inputs, including reported trades, market based quotes, matrix pricing, benchmark yields, broker/dealer quotes, issuer spreads, two-sided markets and/or benchmark securities.

The fair value of mortgage- and asset-backed securities is derived from the use of matrix pricing (prices for similar securities) or, in some cases, cash flow pricing models with observable inputs, such as contractual terms, maturity, credit rating and/or securitization structure to determine the timing and amount of future cash flows.

The fair value of our marketable securities is generally determined using standard observable inputs, including reported trades, market based quotes, benchmark yields, broker/dealer quotes, issuer spreads, two-sided markets and/or benchmark securities.

Derivative Instruments:

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Other investments and other liabilities included in Level 1 are comprised of our deferred compensation plan liabilities and related assets, which consist of mutual funds and are included in other current assets and other assets.

Gains and losses on the revaluation of our deferred compensation plan assets are recorded in investment and other income (expense), net.

Gains and losses on the revaluation of our deferred compensation plan assets are recorded in investment and other income, net.

Corresponding offsetting amounts related to the revaluation of our deferred compensation plan liabilities are included in operating expenses.

Other investments included in Level 3 are comprised of convertible debt instruments issued by private companies.

The inputs we use to estimate the fair values of these instruments are generally unobservable, and therefore, they are included in Level 3.

Nonrecurring Fair Value Measurements:

We measure certain assets and liabilities at fair value on a nonrecurring basis.

These assets and liabilities include equity method and non-marketable equity investments, assets acquired and liabilities assumed in an acquisition or in a nonmonetary exchange, and property, plant and equipment and intangible assets that are written down to fair value when they are held for sale or determined to be impaired, all of which are generally measured based on unobservable inputs using an income or market approach.

These assets and liabilities include equity method and non-marketable equity investments, assets acquired and liabilities assumed in an acquisition, and property, plant and equipment and intangible assets that are written down to fair value when they are held for sale or determined to be impaired, all of which are generally measured based on unobservable inputs using an income or market approach.

Inventories are valued at the lower of cost and net realizable value using the first-in, first-out method.

Recoverability of inventories is assessed based on review of future customer demand that considers multiple factors, including committed purchase orders from customers as well as purchase commitment projections provided by customers and our own forecasts of customer demand, among other factors.

This valuation also requires us to make judgments and assumptions based on information currently available about market conditions, including competition, anticipated technological changes, internal product life cycle and development plans, product pricing and other broader market conditions that may impact customer demand, such as the impact of the macroeconomic environment in fiscal 2022 and 2023.

We generally place binding purchase orders with our suppliers in advance of receiving contractually binding forecasts and/or purchase orders from our customers.

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Further, if our customers cancel purchase orders or alter forecasts this may result in excess inventory on hand.

Our assumptions of future product demand are

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

inherently uncertain, and changes in our estimates and assumptions may cause us to record additional write-downs in the future if demand forecasted for specific products is greater than actual demand.

Our assumptions of future product demand are inherently uncertain, and changes in our estimates and assumptions may cause us to record additional write-downs in the future if demand forecasted for specific products is greater than actual demand.

Property, Plant and Equipment.

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Leasehold improvements and buildings on leased land are amortized over the shorter of their estimated useful lives, not to exceed 15 years and 30 years, respectively, or the remaining term of the related lease.

Other property, plant and equipment have useful lives ranging from 2 to 15 years.

Other property, plant and equipment (which primarily relates to machinery and equipment) have useful lives ranging from 2 to 15 years.

Maintenance, repairs and minor renewals or betterments are charged to expense as incurred.

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Operating Leases.

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Operating leases are included in other assets, other current liabilities and other liabilities on our consolidated balance sheet.

Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such option.

Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such option.

We account for substantially all lease and related non-lease components together as a single lease component.

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We grant licenses or otherwise provide rights to use portions of our intellectual property portfolio, which, among other rights, includes certain patent rights essential to and/or useful in the manufacture, sale or use of certain wireless products.

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

License agreements contain a single performance obligation that represents ongoing access to a portfolio of intellectual property over the license term since such agreements provide the licensee the right to access a portfolio of intellectual property that exists at inception of the license agreement and to updates and new intellectual property that is added to the licensed portfolio during the term of the agreement that are highly interdependent or interrelated.

Licensees pay per-unit royalties based on their sales of products incorporating or using our licensed intellectual property and, to a lesser extent, lump sum payments (license fees, substantially all of which were recognized prior to fiscal 2024).

License fees are recognized as revenues on a straight-line basis over the estimated period of benefit of the license to the licensee.

Licensees primarily pay per-unit royalties based on their sales of products incorporating or using our licensed intellectual property.

Per-unit royalties are generally based upon a percentage of the wholesale (i.e., licensee’s) selling price of complete licensed products, net of certain permissible deductions (including transportation, insurance, packing costs and other items), with certain products subject to per unit minimums and/or per unit caps.

1 unchanged sentence

We estimate and recognize sales-based royalties on such licensed products in the period in which the associated sales occur, considering all relevant information (historical, current and forecasted) that is reasonably available to us.

Our estimates of sales-based royalties are based largely on preliminary royalty estimates provided by our licensees and, to a lesser extent, an assessment of the volume of devices supplied into the market that incorporate or use our licensed intellectual property, combined with an estimate of the mix of such sales on a licensee-by-licensee basis, as well as the licensees’ average wholesale prices of such products.

In the periods presented, we have recognized immaterial differences between preliminary royalty estimates provided to us by licensees and actual amounts reported and paid by licensees, which are generally received the following quarter, as licensees have not completed their royalty reporting process at the time estimates are provided to us, and in certain cases, they do not provide all necessary information in order for us to calculate an estimate of royalties due, which requires us to independently estimate certain information.

Our estimates of sales-based royalties are based largely on preliminary royalty estimates provided by our licensees and, to

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

a lesser extent, an assessment of the volume of devices supplied into the market that incorporate or use our licensed intellectual property, combined with an estimate of the mix of such sales on a licensee-by-licensee basis, as well as the licensees’ average wholesale prices of such products.

We also consider in our estimates of sales-based royalties any changes in pricing we plan or expect to make and certain constraints on our ability to estimate such royalties.

As a result of recognizing revenues in the period in which the licensees’ sales occur using estimates, adjustments to revenues are required in subsequent periods to reflect changes in estimates as new information becomes available, primarily resulting from actual amounts reported by our licensees.

We account for a contract with a customer/licensee when it is legally enforceable, the parties are committed to perform their respective obligations, the rights of the parties regarding the goods and/or services to be transferred are identified, payment terms are identified, the contract has commercial substance and collectability of substantially all of the consideration is probable, which for product sales, is generally when a customer purchase order is executed and for licensing revenues, is generally upon execution of a license agreement.

As a result of this estimation, adjustments to revenues are required in subsequent periods to reflect changes in estimates as new information becomes available.

In the periods presented, such adjustments result primarily from immaterial differences between preliminary royalty estimates provided to us by licensees and actual amounts reported and paid by licensees, which are generally received the following quarter.

We account for a contract with a customer/licensee when it is legally enforceable, the parties are committed to perform their respective obligations, the rights of the parties regarding the goods and/or services to be transferred are identified, payment terms are identified, the contract has commercial substance and collectability of substantially all of the consideration is probable, which for product sales, is generally when a non-cancelable customer purchase order is executed and for licensing revenues, is generally upon execution of a license agreement.

If all such conditions are not met, revenues and any associated receivables are generally not recognized until such time that the required conditions are met.

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Adjustments made to revenues in subsequent periods to reflect changes in estimates as new information becomes available are included in our disclosure of revenues recognized from previously satisfied performance obligations (Note 2).

Revenues recognized from sales of our products and sales-based royalties are generally included in accounts receivable, net (including unbilled receivables) based on our unconditional right to payment for satisfied or partially satisfied

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

performance obligations.

Our payment terms are generally short-term in duration, with payment due shortly after delivery for product sales and within the following quarter for QTL sales-based royalties.

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Investigations by antitrust and trade regulation agencies are not conducted in a consistent manner across jurisdictions.

Further, each country and agency has different sets of laws, rules and regulations, both substantive and procedural, as well as different legal principles, theories and potential remedies, and some agencies may seek to use the investigation to advance domestic policy goals.

Further, each country and agency have different sets of laws, rules and regulations, both substantive and procedural, as well as different legal principles, theories and potential remedies, and some agencies may seek to use the investigation to advance domestic policy goals.

Depending on the jurisdiction, these investigations can involve non-transparent procedures under which we may not receive access to evidence relied upon by the enforcement agency or that may be exculpatory and may not be informed of the specific legal theories or evidence considered or relied upon by the agency.

Unlike in civil litigation in the United States, in foreign proceedings, we may not be entitled to discovery or depositions, allowed to cross-examine witnesses or confront our accusers.

As a result, we may not be aware of, and may not be entitled to know, all allegations against us, or the information or documents provided to, or discovered or prepared by, the agency.

As a result, we

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

may not be aware of, and may not be entitled to know, all allegations against us, or the information or documents provided to, or discovered or prepared by the agency.

Accordingly, we may have little or no idea what an agency’s intent is with respect to liability, penalties or the timing of a decision.

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Certain foreign subsidiaries use a local currency as the functional currency.

Resulting translation gains or losses are recorded as a component of accumulated other comprehensive income (loss).

Resulting translation gains or losses are recorded as a component of accumulated other comprehensive income.

Transaction gains or losses related to balances denominated in a currency other than the functional currency of the entity involved are recognized in the consolidated statements of operations.

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We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known.

We account for accrued interest and penalties related to uncertain tax benefits as a component of income tax expense.

We are subject to income taxes in the United States and numerous foreign jurisdictions, and the assessment of our income tax positions involves dealing with uncertainties in the application of complex tax laws and regulations in various taxing jurisdictions.

1 unchanged sentence

Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings.

Significant judgments and estimates are required in

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

determining our provision for income taxes, including those related to special deductions such as FDII (foreign-derived intangible income), tax incentives, intercompany research and development cost-sharing arrangements, transfer pricing, tax credits and the realizability of deferred tax assets.

Significant judgments and estimates are required in determining our provision for income taxes, including those related to special deductions such as FDDEI (foreign-derived deduction eligible income formerly known as foreign-derived intangible income or FDII), tax incentives, intercompany research and development cost-sharing arrangements, transfer pricing, tax credits and the realizability of deferred tax assets.

While we believe we have appropriate support for the positions we have taken or that we plan to take on our tax returns, we regularly assess the potential outcomes of examinations by taxing authorities in determining the adequacy of our provision for income taxes.

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or foreign taxes may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities.

For tax years prior to fiscal 2021, we are participating in the IRS Compliance Assurance Process program whereby we endeavor to agree with the IRS on the treatment of all issues prior to filing our federal return.

As a result of certain provisions of the One Big Beautiful Bill Act (OBBB), which was enacted on July 4, 2025 (Note 3), we expect to be subject to the corporate alternative minimum tax (CAMT) beginning in fiscal 2026.

Our policy is to consider the impact of future years’ CAMT when evaluating the realizability of deferred tax assets and the need for a valuation allowance.

Stock Repurchases.

To reflect share repurchases in the consolidated balance sheet, we (i) reduce common stock for the par value of the shares, (ii) reduce paid-in capital for the amount in excess of par to zero during the quarter in which the shares are repurchased and (iii) record the residual amount, if any, to retained earnings.

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Earnings Per Share.

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period.

Diluted earnings per share is computed by dividing net income by the combination of the weighted-average number of common shares outstanding and the weighted-average number of dilutive common share equivalents, comprised of shares issuable under our share-based compensation plans, during the reporting period, using the treasury stock method.

Diluted earnings per share is computed by dividing net income by the combination of the weighted-average number of common shares outstanding and the weighted-average number of dilutive common share equivalents, primarily comprised of shares issuable under our equity compensation plans, during the reporting period, using the treasury stock method.

The following table provides information about the diluted earnings per share calculation (in millions):

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Shares of common stock equivalents not included because the effect would be anti-dilutive or certain performance conditions were not satisfied at the end of the period 2 4 7

Recent Accounting Pronouncements Not Yet Adopted.

Recently Adopted Accounting Pronouncement.

Segment Reporting Disclosures:

In November 2023, the Financial Accounting Standards Board (FASB) issued new requirements to disclose certain incremental segment information on an annual and interim basis, including (among other items) additional disclosure about significant segment expenses.

We will adopt the new requirements for our annual periods starting in fiscal 2025 (and interim periods thereafter) on a retrospective basis.

We adopted the new requirements in our annual reporting for fiscal 2025 on a retrospective basis (Note 8).

Recent Accounting Pronouncements Not Yet Adopted.

Income Tax Disclosures:

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$ 2,623 $ ( 1,475 ) 9 $ 2,567 $ ( 1,323 ) 9

All of these intangible assets are subject to amortization, other than acquired in-process research and development which had a carrying value of $ 188 million and $ 435 million at September 29, 2024 and September 24, 2023, respectively.

All of these intangible assets are subject to amortization, other than acquired in-process research and development which had no balance at September 28, 2025 and a carrying value of $ 188 million at September 29, 2024.

Amortization expense related to these intangible assets was $ 321 million, $ 311 million and $ 418 million for fiscal 2025, 2024 and 2023, respectively.

At September 29, 2024, amortization expense related to other intangible assets, including acquired in-process research and development beginning upon the completion of the underlying projects, is expected to be $ 290 million, $ 274 million, $ 187 million, $ 156 million and $ 129 million for each of the five years from fiscal 2025 through 2029, respectively, and $ 208 million thereafter.

At September 28, 2025, amortization expense related to other intangible assets is expected to be $ 331 million, $ 241 million, $ 200 million, $ 155 million and $ 118 million for each of the five years from fiscal 2026 through 2030, respectively, and $ 103 million thereafter.

QUALCOMM Incorporated

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(3) Primarily includes products sold for use in the following industries and applications:

consumer (including PCs, tablets, voice and music and XR), edge networking (including mobile broadband and wireless access points) and industrial (including handhelds, retail, tracking and logistics and utilities).

Revenues recognized from performance obligations satisfied (or partially satisfied) in previous periods generally include certain QCT sales-based royalty revenues related to system software, certain amounts related to QCT customer incentives and QTL royalty revenues recognized related to devices sold in prior periods (including adjustments to prior period royalty estimates, which includes the impact of the reporting by our licensees of actual royalties due) and were as follows (in millions):

consumer (including PCs, XR and other personal computing devices), edge networking (including mobile broadband and wireless access points) and industrial (including handhelds, retail, tracking and logistics and utilities).

Revenues recognized from performance obligations satisfied (or partially satisfied) in previous periods generally include certain sales-based royalty revenues related to system software, certain amounts related to customer incentives and QTL royalty revenues recognized related to devices sold in prior periods (including revenues resulting from certain settlements and adjustments to prior period royalty estimates, which includes the impact of the reporting by our licensees of actual royalties due) and were as follows (in millions):

2025 2024 2023

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$ 783 $ 558 $ 598

Unearned revenues (which are considered contract liabilities) consist primarily of certain customer contracts for which QCT received fees upfront and QTL license fees for intellectual property with continuing performance obligations (substantially all of which were recognized prior to fiscal 2024).

In fiscal 2024 and fiscal 2023, we recognized revenues of $ 312 million and $ 355 million, respectively, that were recorded as unearned revenues at September 24, 2023 and September 25, 2022, respectively.

Remaining performance obligations, which are primarily included in unearned revenues (as presented on our consolidated balance sheet), represent the aggregate amount of the transaction price of certain customer contracts yet to be recognized as revenues as of the end of the reporting period and exclude revenues related to (a) contracts that have an original expected duration of one year or less and (b) sales-based royalties (i.e., future royalty revenues) pursuant to our license

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Our patent license agreements with key OEMs are generally long-term, with terms expiring at varying dates between fiscal 2027 and 2031 .

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A significant portion of our revenues are concentrated with a small number of customers/licensees of our QCT and QTL (Qualcomm Technology Licensing) segments.

The comparability of customer/licensee concentrations for the periods presented are impacted by the timing of customer/licensees device launches and/or innovation cycles and other seasonal trends, among other fluctuations in demand.

The comparability of customer/licensee concentrations for the periods presented are impacted by the timing of customer/licensee device launches and/or innovation cycles and other

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

seasonal trends, among other fluctuations in demand.

Revenues from each customer/licensee that were 10% or greater of total revenues were as follows:

September 29,

2024 September 24,

2023 September 25,

2025 2024 2023

Customer/licensee (x)

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Other Income, Costs and Expenses.

Other expenses in fiscal 2024 consisted primarily of restructuring and restructuring-related charges (substantially all of which related to severance costs) and a charge related to the settlement of the securities class action lawsuit (Note 7).

Other expenses in fiscal 2025 consisted of $ 39 million in restructuring an d restructuring-related charges.

Other expenses in fiscal 2024 consisted primarily of $ 107 million in restructuring and restructuring-related charges (substantially all of which related to severance costs) and a $ 75 million charge related to the settlement of a securities class action lawsuit.

Other expenses in fiscal 2023 consisted of $ 712 million in total restructuring and restructuring-related charges (substantially all of which related to severance costs, resulting from certain cost reduction actions committed to in fiscal 2023) and a $ 150 million intangible asset impairment charge related to in-process research and development.

In the third quarter of fiscal 2022, the General Court of the European Union issued a ruling annulling a decision made by the European Commission (EC) in fiscal 2018.

As a result of the court’s decision, we recorded a $ 1.1 billion benefit to other income in fiscal 2022 resulting from the reversal of the previously accrued EC fine.

Discontinued Operations.

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for net cash proceeds of $ 1.5 billion.

On March 1, 2024, SSW Partners completed the sale of Veoneer’s Restraint Control Systems (RCS) business to American Industrial Partners Capital Fund VII.

On March 1, 2024, SSW Partners completed the sale of Veoneer’s Restraint Control Systems business to American Industrial Partners Capital Fund VII.

Although we did not own or operate the Non-Arriver businesses, we were the primary beneficiary, within the meaning of the FASB accounting guidance related to consolidation (ASC 810), of these businesses under the variable interest model, until sold by SSW.

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(i) our involvement in the design of and our funding of substantially all of the total cash consideration payable in the transaction and (ii) our obligation to absorb losses and rights to receive returns from the Non-Arriver businesses.

Accordingly, through the date of disposition by SSW Partners, the assets and liabilities of the Non-Arriver businesses have been consolidated and presented as held for sale on our consolidated balance sheets, and the operating results (including the gain or loss on sale, the amounts of which were not material) have been presented as discontinued operations.

Also, the cash flows provided (used) by the Non-Arriver businesses are reflected separately as discontinued operations, with the cash proceeds from the sale of the Active Safety and RCS businesses presented as investing activities.

Investment and Other Income (Expense), Net (in millions)

Accordingly, through the date of disposition by SSW Partners, the results of operations (including the gain or loss on sale, the amounts of which were not material) and cash flows of the Non-Arriver businesses are presented as discontinued operations, with the cash proceeds from those sales presented as investing activities.

Investment and Other Income, Net (in millions)

2025 2024 2023

Interest and dividend income $ 639 $ 675 $ 313

Net gains (losses) on marketable securities

14 75 ( 363 )

Net gains on marketable securities

Net gains on other investments 44 175 21

Net gains (losses) on deferred compensation plan assets

198 86 ( 141 )

Net gains on deferred compensation plan assets

Impairment losses on other investments ( 113 ) ( 79 ) ( 132 )

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2,670 2,114 1,730

Deferred (benefit) provision:

Deferred provision (benefit):

Federal 4,373 ( 1,553 ) ( 1,475 )

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Expected income tax provision at federal statutory tax rate $ 2,659 $ 2,171 $ 1,563

Valuation allowance on federal deferred tax assets resulting from OBBB

Benefit from FDII deduction, excluding the impact of capitalizing research and development expenditures ( 735 ) ( 596 ) ( 447 )

Benefit from FDII deduction related to capitalizing research and development expenditures ( 492 ) ( 585 ) ( 598 )

Benefit related to the transfer of intellectual property between foreign subsidiaries

Benefit related to research and development tax credits ( 237 ) ( 259 ) ( 235 )

Excess tax (benefit) deficiency associated with share-based awards ( 120 ) ( 176 ) 3

Foreign currency (gains) losses related to Korean withholding tax receivable ( 21 ) ( 66 ) 243

Foreign currency losses (gains) related to Korean withholding tax receivable 98 ( 21 ) ( 66 )

Benefit related to the transfer of intellectual property between foreign subsidiaries

( 8 ) ( 317 ) —

Benefit from fiscal 2021 and 2022 FDII deductions related to a change in sourcing of research and development expenditures — — ( 126 )

Benefit from releasing valuation allowance on unutilized foreign loss carryforwards — — ( 114 )

Nontaxable reversal of 2018 EC fine — — ( 224 )

Other 233 9 124

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Effective tax rate 56 % 2 % 1 %

Beginning in fiscal 2023, for federal income tax purposes, we are required to capitalize and amortize domestic research and development expenditures over five years and foreign research and development expenditures over fifteen years (such expenditures were previously deducted as incurred).

Our cash flows from operations are adversely affected due to significantly higher cash tax payments.

However, since the resulting deferred tax asset is established at the statutory rate of 21 % (rather than the current effective tax rate of 13 % to 16 % after considering the FDII deduction), capitalization favorably

On July 4, 2025, tax reform legislation included in the OBBB was enacted in the United States.

The OBBB includes significant corporate tax reforms, including the permanent reinstatement of deducting domestic research and development expenditures as incurred beginning in fiscal 2026 (under prior law such expenditures were capitalized and amortized over five years).

The legislation also modifies international tax provisions, including changes to the FDII regime.

Specifically, it renames FDII as FDDEI, maintains the current FDDEI effective tax rate of 13 % through fiscal 2026 and adjusts the FDDEI effective tax rate to a permanent 14 % rate in fiscal 2027 (compared to 16 % under prior law).

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

affects our total provision for income taxes and results of operations.

The adverse cash flow impact and favorable tax provision impact will diminish in future years as capitalized research and development expenditures continue to amortize.

As a result of these changes, we expect to be subject to CAMT beginning in fiscal 2026.

CAMT imposes a 15 % federal minimum tax on adjusted financial statement income, reduced by general business credits, including research and development credits.

As we expect to perpetually be subject to CAMT, we no longer expect to realize substantially all of our existing federal deferred tax assets and recognized a charge of $ 5.7 billion to income tax expense to establish a valuation allowance in the fourth quarter of fiscal 2025.

Changes in future taxable income (including less of our income qualifying for preferential treatment as FDDEI), tax laws (including changes to the CAMT rules) and other factors may change our determination regarding whether we will be able to realize our deferred tax assets.

Our policy is to consider the impact of future years’ CAMT in our valuation allowance assessment of deferred tax assets.

Beginning in fiscal 2023 and through fiscal 2025, for federal income tax purposes, we were required to capitalize and amortize domestic research and development expenditures over five years (such expenditures were previously deducted as incurred).

Our cash flows from operations were adversely affected due to significantly higher cash tax payments.

However, since the resulting deferred tax asset was established at the statutory rate of 21 % (rather than the current effective tax rate of 13 % after considering the FDII deduction), capitalization favorably affected our total provision for income taxes and results of operations.

With the enactment of OBBB, such impacts on our cash flows and tax provision are not expected to continue beginning in fiscal 2026.

In the fourth quarter of fiscal 2024, we completed an intra-group transfer of intellectual property to better align certain intellectual property ownership within our QCT business, which resulted in the recognition of a tax benefit of $ 317 million during the fourth quarter of fiscal 2024 from the establishment of a deferred tax asset.

Such tax benefit was based on the value of the intellectual property transferred, which was measured using an income approach based on significant unobservable inputs.

Beginning in fiscal 2019, as a result of certain court rulings in Korea, among other factors, we decided to apply for a partial refund claim for taxes previously withheld from licensees in Korea on payments due under their license agreements to which we have claimed a foreign tax credit in the United States.

As a result, $ 2.2 billion and $ 2.0 billion was recorded as a noncurrent income taxes receivable (recorded in other assets) at September 29, 2024 and September 24, 2023, respectively, and $ 2.5 billion and $ 2.3 billion was recorded as a noncurrent liability for uncertain tax benefits (recorded in other liabilities) at September 29, 2024 and September 24, 2023, respectively.

At September 29, 2024, our remaining future payments were $ 1.0 billion for a one-time repatriation tax accrued in fiscal 2018, after application of certain tax credits, which is payable in installments over the next two years.

At September 29, 2024, $ 530 million was recorded in other current liabilities, reflecting the next installment due in January 2025, with the remaining noncurrent portion presented in other liabilities on our balance sheet.

Beginning in fiscal 2019, we applied for partial refund claims for taxes previously withheld from licensees in Korea on payments due under their license agreements to which we have claimed a foreign tax credit in the United States.

As a result, $ 2.2 billion was recorded as noncurrent income taxes receivable (included in other assets) at both September 28, 2025 and September 29, 2024, and $ 2.6 billion and $ 2.5 billion were recorded as a noncurrent liability for uncertain tax benefits (included in other liabilities) at September 28, 2025 and September 29, 2024, respectively.

We had deferred tax assets and deferred tax liabilities as follows (in millions):

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Accrued liabilities and reserves 410 397

Operating lease liabilities 282 216

Share-based compensation 152 285

Unrealized losses on other investments and marketable securities 146 159

Other 1,069 1,039

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( 131 ) ( 114 )

$ 612 $ 5,048

(1) Non-current deferred tax liabilities were included in other liabilities in the consolidated balance sheets.

At September 29, 2024, we had unused foreign net operating loss carryforwards of $ 2.6 billion, of which substantially all may be carried forward indefinitely, unused state net operating loss carryforwards of $ 817 million expiring from 2025 through 2037 and unused federal net operating loss carryforwards of $ 150 million, of which $ 102 million expire from 2025 through 2037 and $ 48 million may be carried forward indefinitely.

At September 29, 2024, we had unused state tax credits of $ 1.9 billion, of which substantially all may be carried forward indefinitely, unused federal tax credits of $ 219 million expiring from 2028 through 2041 and unused tax credits of $ 92 million in foreign jurisdictions expiring from 2031 through 2044.

We do not expect our federal net operating loss carryforwards to expire unused.

At September 28, 2025, we had unused foreign net operating loss carryforwards of $ 2.6 billion, of which substantially all may be carried forward indefinitely, unused state net operating loss carryforwards of $ 790 million expiring from 2026 through 2037 and unused federal net operating loss carryforwards of $ 90 million, of which substantially all expire from 2026 through 2037.

At September 28, 2025, we had unused state tax credits of $ 2.1 billion, of which substantially all may be

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At September 29, 2024, we have provided a valuation allowance on certain state tax credits, foreign deferred tax assets and state net operating losses of $ 1.9 billion, $ 121 million and $ 41 million respectively.

The valuation allowance reflects the uncertainties surrounding our ability to generate sufficient future taxable income in certain tax jurisdictions to utilize our net deferred tax assets.

carried forward indefinitely, unused federal tax credits of $ 363 million expiring from 2028 through 2035 and unused tax credits of $ 64 million in foreign jurisdictions expiring from 2031 through 2045.

At September 28, 2025, in addition to the $ 5.7 billion valuation allowance on federal deferred tax assets as a result of the enactment of OBBB, we have provided valuation allowances on certain state tax credits, foreign deferred tax assets and state net operating losses of $ 2.1 billion, $ 133 million and $ 38 million, respectively.

The valuation allowances reflect our current expectations regarding our ability to generate sufficient future taxable income in certain tax jurisdictions to utilize our net deferred tax assets.

We believe, more likely than not, that we will have sufficient taxable income to utilize our remaining deferred tax assets.

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Additions for current year tax positions 153 153 158

Settlements with taxing authorities — — ( 51 )

Ending balance of unrecognized tax benefits $ 2,668 $ 2,450 $ 2,296

Of the $ 2.7 billion of unrecognized tax benefits, $ 2.3 billion has been recorded to other liabilities.

We believe that it is reasonably possible that certain unrecognized tax benefits recorded at September 29, 2024 may result in a cash payment in fiscal 2025.

We believe that it is reasonably possible that our unrecognized tax benefits will change in fiscal 2026 and also certain amounts of which may result in cash payment in fiscal 2026.

Unrecognized tax benefits at September 28, 2025 included $ 168 million for tax positions that, if recognized, would impact the effective tax rate.

The unrecognized tax benefits differ from the amount that would affect our effective tax rate primarily because the unrecognized tax benefits were included on a gross basis and did not reflect related receivables or secondary impacts, such as the federal deduction for state taxes, adjustments to deferred tax assets and the valuation allowance that might be required if our tax positions are sustained.

The increase in unrecognized tax benefits for all periods presented was primarily due to expected refunds of Korean withholding tax previously paid (which such increase had an insignificant impact to our income tax provision).

The increase in unrecognized tax benefits on prior year tax positions in fiscal 2025 relates primarily to transfer pricing positions taken in a foreign jurisdiction.

The increase in unrecognized tax benefits for current year tax positions for the periods presented was primarily due to expected refunds of Korean withholding tax previously paid (which such increase had an insignificant impact to our income tax provision).

If successful, the refund will result in a corresponding reduction in U.S.

foreign tax credits.

We believe that it is likely that the total amount of unrecognized tax benefits at September 29, 2024 will increase in fiscal 2025 as licensees in Korea continue to withhold taxes on future payments due under their licensing agreements at a rate higher than we believe is owed;

such increase is not expected to have a significant impact on our income tax provision.

At September 28, 2025, total interest and penalties related to unrecognized tax benefits accrued in other current liabilities and other liabilities was $ 384 million, with a corresponding noncurrent income taxes receivable of $ 269 million recorded in other assets for expected refunds of certain tax benefits.

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Stock Repurchase Program.

On October 12, 2021, we announced a $ 10.0 billion stock repurchase program.

At September 29, 2024, $ 1.0 billion remained authorized for repurchase under this stock repurchase program.

On November 6, 2024, we announced a new $ 15.0 billion stock repurchase authorization, which is in addition to the aforementioned program.

The stock repurchase programs have no expiration date.

During the first quarter of fiscal 2025, we utilized the remaining repurchase authority under the $ 10.0 billion stock repurchase program announced on October 12, 2021 and we began repurchases under the $ 15.0 billion stock repurchase program announced on November 6, 2024, which has no expiration date.

At September 28, 2025, $ 7.2 billion remained authorized for repurchase under our stock repurchase program.

Shares Outstanding.

Shares of common stock outstanding at September 28, 2025 were as follows (in millions):

Balance at beginning of period

On October 16, 2024 , we announced a cash dividend of $ 0.85 per share on our common stock, payable on December 19, 2024 to stockholders of record as of the close of business on December 5, 2024 .

Balance at September 29, 2024

Balance at September 28, 2025

QUALCOMM Incorporated

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Long-term Debt.

In May 2024, we repaid $ 914 million of fixed-rate notes that matured in May 2024.

The following table provides a summary of our long-term debt and current portion of long-term debt:

During the third quarter of fiscal 2025, we repaid $ 1.4 billion of unsecured fixed-rate notes that matured in May 2025.

In May 2025, we also issued $ 1.5 billion of unsecured fixed-rate notes, consisting of $ 500 million of 4.50 % notes, $ 400 million of 4.75 % notes and $ 600 million of 5.00 % notes (collectively, May 2025 Notes) that mature on May 20, 2030, May 20, 2032 and May 20, 2035, respectively.

The net proceeds from the May 2025 Notes will be used for general corporate purposes.

The following table provides a summary of our long-term debt:

September 28, 2025 September 29, 2024

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(in millions) Effective Rate

May 2015 Notes 2025 - 2045

$ 3,865 3.45 % - 4.72 %

$ 3,865 3.46 % - 4.73 %

May 2017 Notes 2027 - 2047

3,500 3.81 % - 4.45 %

4,414 3.00 % - 4.45 %

May 2020 Notes 2030 - 2050

2,000 2.84 % - 3.30 %

2,000 3.22 % - 3.30 %

August 2020 Notes 2028 - 2032

2,207 2.37 % - 3.39 %

2,207 2.65 % - 3.89 %

May 2022 Notes 2032 - 2052

1,500 3.17 % - 4.28 %

1,500 3.15 % - 4.27 %

November 2022 Notes 2033 - 2053

Fixed-rate notes

$ 15,107 2.39 % - 5.12 %

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Long-term debt 14,811 13,270

Total $ 14,634 $ 15,398

At September 29, 2024, future principal payments were $ 1.4 billion in fiscal 2025, $ 2.0 billion in fiscal 2027, $ 1.0 billion in fiscal 2028 and $ 10.6 billion after fiscal 2029;

no principal payments are due in fiscal 2026 or fiscal 2029.

$ 14,811 $ 14,634

At September 28, 2025, future principal payments of our long-term debt were as follows (in millions):

Thereafter 10,445

At September 28, 2025, the aggregate fair value of the notes, based on Level 2 inputs, was approximately $ 14.2 billion.

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Interest Rate Swaps.

At September 29, 2024 and September 24, 2023, we had outstanding interest rate swaps with an aggregate notional amount of $ 2.1 billion that are designated as fair value hedges and allow us to effectively convert fixed-rate payments into floating-rate payments on a portion of our outstanding long-term debt.

At September 28, 2025 and September 29, 2024, we had outstanding interest rate swaps with an aggregate notional amount of $ 3.6 billion and $ 2.1 billion, respectively, that are designated as fair value hedges and allow us to effectively convert fixed-rate payments into floating-rate payments on a portion of our outstanding long-term debt.

Commercial Paper Program .

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Revolving Credit Facility.

On August 8, 2024, we entered into a Revolving Credit Facility, replacing our prior Amended and Restated Revolving Credit Facility.

The Revolving Credit Facility provides for unsecured revolving facility loans, swing line loans and letters of credit in an aggregate amount of up to $ 4.0 billion, which expires on August 8, 2029.

At September 29, 2024, no amounts were outstanding under the Revolving Credit Facility.

There were no outstanding borrowings under the Amended and Restated Revolving Credit Facility at the time of termination and September 24, 2023.

We have a Revolving Credit Facility that provides for unsecured revolving facility loans, swing line loans and letters of credit in an aggregate amount of up to $ 4.0 billion, which expires on August 8, 2029.

At September 28, 2025 and September 29, 2024, no amounts were outstanding under the Revolving Credit Facility.

Debt Covenants.

The Revolving Credit Facility requires that we comply with certain covenants, including that we maintain an interest coverage ratio as defined in the agreement.

We are not subject to any financial covenants under the notes nor any covenants that would prohibit us from incurring additional indebtedness ranking equal to the notes, paying dividends or issuing securities or repurchasing securities issued by us or our subsidiaries.

At September 29, 2024, we were in compliance with the applicable covenants under the Revolving Credit Facility.

We are not subject to any financial covenants under the notes nor any covenants that would prohibit us from incurring additional indebtedness ranking equal to the notes, paying dividends

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

or issuing securities or repurchasing securities issued by us or our subsidiaries.

At September 28, 2025, we were in compliance with the applicable covenants under the Revolving Credit Facility.

Commitments and Contingencies

Legal and Regulatory Proceedings.

Consolidated Securities Class Action Lawsuit:

On January 23, 2017 and January 26, 2017, securities class action complaints were filed by purported stockholders of us in the United States District Court for the Southern District of California against us and certain of our then current and former officers and directors.

The complaints alleged, among other things, that we violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 thereunder, by making false and misleading statements and omissions of material fact in connection with certain allegations that we are or were engaged in anticompetitive conduct.

The complaints sought unspecified damages, interest, fees and costs.

The court consolidated the two actions, and on July 3, 2017, the plaintiffs filed a consolidated amended complaint asserting the same basic theories of liability and requesting the same basic relief.

On May 23, 2022, the plaintiffs filed a motion for class certification, and on March 20, 2023, the court issued an order granting in part and denying in part the plaintiffs’ motion for class certification.

The order denied class certification on the basis of alleged misrepresentations relating to our chip-level licensing practices, but certified a class on the basis of alleged misrepresentations relating to the separate operations of QCT and QTL.

We reached a proposed settlement with the plaintiffs to resolve this litigation, and on June 18, 2024, we and the plaintiffs, along with the individual defendants, filed a joint Stipulation and Agreement of Settlement with the court.

The settlement was approved by the court on September 27, 2024.

In the third quarter of fiscal 2024, we recorded a charge of $ 75 million to other expenses for the settlement amount, which amount was paid in the fourth quarter of fiscal 2024.

Consumer Class Action Lawsuits:

Beginning in January 2017, a number of consumer class action complaints were filed against us in the United States District Courts for the Southern and Northern Districts of California, each on behalf of a putative class of purchasers of cellular phones and other cellular devices.

The cases filed in the Southern District of California were subsequently transferred to the Northern District of California.

On July 11, 2017, the plaintiffs filed a consolidated amended complaint alleging that we violated California and federal antitrust and unfair competition laws by, among other things, refusing to license standard-essential patents to our competitors, conditioning the supply of certain of our baseband chipsets on the purchaser first agreeing to license our entire patent portfolio, entering into exclusive deals with companies, including Apple Inc., and charging unreasonably high royalties that do not comply with our commitments to standard setting organizations.

The complaint sought unspecified damages and disgorgement and/or restitution, as well as an order that we be enjoined from further unlawful conduct.

On September 27, 2018, the court certified the class.

We appealed the court’s class certification order to the United States Court of Appeals for the Ninth Circuit (Ninth Circuit).

On September 29, 2021, the Ninth Circuit vacated the class certification order, ruling that the district court had failed to correctly assess the propriety of applying California law to a nationwide class, and remanded the case to the district court.

On June 10, 2022, the plaintiffs filed an amended complaint, limiting the proposed class to California residents rather than a nationwide class.

We filed a motion to dismiss the amended complaint, and on January 6, 2023, the court issued an order granting in part and denying in part our motion to dismiss.

We subsequently filed a motion for summary judgment on the plaintiffs’ remaining claims.

The court granted our motion in its entirety and, on October 5, 2023, entered final judgment in Qualcomm’s favor.

On November 2, 2023, the plaintiffs filed a notice of appeal to the Ninth Circuit, and on October 15, 2024, the court held a hearing on the appeal.

The court has not yet issued a ruling.

We intend to continue to vigorously defend ourselves in this matter.

Beginning in November 2017, several other consumer class action complaints were filed against us in Canada (in the Supreme Court of British Columbia and the Quebec Superior Court), Israel (in the Haifa District Court) and the United Kingdom (in the Competition Appeal Tribunal), each on behalf of a putative class of purchasers of cellular phones and other cellular devices, alleging violations of certain of those countries’ competition and consumer protection laws and seeking damages.

The claims in these complaints are similar to those in the U.S.

consumer class action complaints described above.

These matters are at various stages of litigation, and we intend to continue to vigorously defend ourselves.

ParkerVision, Inc.

QUALCOMM Incorporated:

On May 1, 2014, ParkerVision filed a complaint against us in the United States District Court for the Middle District of Florida alleging that certain of our products infringed seven ParkerVision patents.

On August 21, 2014, ParkerVision amended the complaint, alleging that we infringed 11 ParkerVision patents and sought damages and injunctive and other relief.

On May 1, 2014, ParkerVision, Inc.

(ParkerVision) filed a complaint against us in the United States District Court for the Middle District of Florida alleging that certain of our products infringed seven ParkerVision patents.

ParkerVision subsequently reduced the number of patents asserted to three.

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On March 23, 2022, the district court entered judgment in our favor on all claims and closed the case.

On April 20, 2022, ParkerVision filed a notice of appeal to the United States Court of Appeals for the Federal Circuit (Federal Circuit).

On September 6, 2024, the Federal Circuit reversed the judgment of the district court, citing certain substantive and procedural issues, and remanded the case to the district court for further proceedings.

ParkerVision appealed to the United States Court of Appeals for the Federal Circuit (Federal Circuit), and on September 6, 2024, the Federal Circuit reversed the judgment of the district court, citing certain substantive and procedural issues, and remanded the case to the district court for further proceedings.

Following a claim construction ruling by the district court, the parties agreed to a stipulated judgment of non-infringement with respect to certain of ParkerVision’s claims (Receiver Claims).

On October 2, 2025, the court entered a final judgment in our favor with respect to the Receiver Claims and severed and stayed ParkerVision’s remaining claims (Transmitter Claims), pending appeal of the court’s claim construction ruling and resulting determination of non-infringement of the Receiver Claims.

On October 6, 2025, ParkerVision filed a notice of appeal to the Federal Circuit.

We have moved to dismiss ParkerVision’s appeal as procedurally improper.

We intend to continue to vigorously defend ourselves in this matter.

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Arm is seeking specific performance, including that we cease all use of and destroy any technology that was developed under the Nuvia ALA, including processor core technology (which Arm alleges includes our custom Qualcomm Oryon CPU cores).

Arm’s complaint also contends that we violated the Lanham Act through trademark infringement and false designation of origin through unauthorized use of Arm’s trademarks and seeks associated injunctive and declaratory relief;

however, Arm subsequently informed the court of its intent to withdraw such claims.

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

On September 30, 2022, we filed our Answer and Counterclaim in response to Arm’s complaint denying Arm’s claims.

Our counterclaim seeks a declaratory judgment that we did not breach the Nuvia ALA or the Technology License Agreement between Nuvia and Arm (together with the Nuvia ALA, the Arm-Nuvia Agreements) and that, following the acquisition of Nuvia, our architected cores (including all further developments, iterations or instantiations of the technology we acquired from Nuvia) and System-on-Chip (SoC) products incorporating such cores are fully licensed under our existing Architecture License Agreement with Arm (the Qualcomm ALA) and Technology License Agreement with Arm (together with the Qualcomm ALA, the Arm-Qualcomm Agreements).

We further seek an order enjoining Arm from making any claim that our products are not licensed under the Arm-Qualcomm Agreements, are not Arm-compliant or that we are prohibited from using Arm’s marks in the marketing of any such products.

On October 26, 2022, we filed an Amended Counterclaim seeking additional declaratory relief that certain statements Arm is making in the marketplace concerning our rights under the Arm-Qualcomm Agreements are false, and that Arm has no right to prevent us from shipping our products, which are validly licensed.

On March 22, 2024, we filed a Second Amended Counterclaim asserting that Arm has breached the Arm-Nuvia Agreements by continuing to use Nuvia technology and by failing to return or destroy Nuvia confidential information after the Arm-Nuvia Agreements were terminated.

The Second Amended Counterclaim seeks damages related to the asserted breaches.

On July 10, 2024, Arm filed a motion for partial summary judgment that the Nuvia ALA was properly terminated, that the Nuvia ALA was breached, and that Arm did not breach the Arm-Nuvia Agreements.

We also filed a motion for summary judgment on Arm’s breach of contract claims, that Qualcomm’s architected cores are licensed under the Qualcomm ALA, and that Qualcomm has not infringed Arm’s trademarks.

On October 30, 2024, the court denied both parties’ motions for summary judgment.

Trial is scheduled to begin on December 16, 2024.

Our counterclaim seeks a declaratory judgment that we did not breach the Nuvia ALA or the Technology License Agreement between Nuvia and Arm, and that, following the acquisition of Nuvia, our architected cores (including all further developments, iterations or instantiations of the technology we acquired from Nuvia) and System-on-Chip (SoC) products incorporating such cores are fully licensed under our existing Architecture License Agreement with Arm (the Qualcomm ALA) and Technology License Agreement with Arm (the Qualcomm TLA).

A trial was held beginning on December 16, 2024, and on December 20, 2024, the jury found that (i) Qualcomm did not breach the Nuvia ALA and (ii) Qualcomm CPUs that include designs acquired in the Nuvia acquisition are licensed under the Qualcomm ALA.

The jury was unable to reach a verdict with respect to Arm’s claim as to whether Nuvia breached the Nuvia ALA.

The parties filed various post-trial motions, including motions for judgment as a matter of law.

On September 30, 2025, the court entered a final judgment upholding the jury’s verdict in favor of Qualcomm, granting judgment to Nuvia, and dismissing Arm’s remaining claims.

On October 1, 2025, Arm filed a notice of appeal to the United States Court of Appeals for the Third Circuit.

We intend to continue to vigorously defend ourselves against Arm’s claims in this matter.

On April 18, 2024, we filed a separate complaint (captioned QUALCOMM Incorporated v.

Arm Ltd.) against Arm in the United States District Court for the District of Delaware.

) against Arm in the United States District Court for the District of Delaware.

The complaint alleges that Arm has breached the Qualcomm ALA by failing to provide certain deliverables that Arm is obligated to provide.

The complaint seeks an order that Arm comply with its contractual obligations, damages, and additional relief.

Arm moved to dismiss this complaint, and on October 30, 2024, the court denied Arm’s motion to dismiss.

No trial date has been set for this case.

On December 16, 2024, we filed a First Amended Complaint alleging additional causes of action based on Arm improperly seeking to terminate the Qualcomm ALA and improperly publicizing that it was seeking to terminate the Qualcomm ALA.

On June 3, 2025, we filed a Second Amended Complaint to add a claim that Arm has breached the Qualcomm TLA by failing to provide license offers at commercially reasonable prices and terms.

Arm has moved to dismiss our amended complaint.

Trial is scheduled to begin on March 9, 2026.

On October 22, 2024, Arm provided us with a notice alleging that we have breached the Qualcomm ALA by marketing products that contain CPUs that Arm alleges use designs, technology and code created by Nuvia employees prior to our acquisition of Nuvia;

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Arm’s notice asserts that it will have the right to terminate the Qualcomm ALA if such alleged breaches are not cured within 60 days of such notice.

We disagree with Arm’s allegations, including that we are in breach of the Qualcomm ALA.

We disagree with Arm’s allegations, including that we are, or have been, in breach of the Qualcomm ALA.

On January 8, 2025, Arm notified us that it was withdrawing its October 22, 2024 notice of breach and indicated that it has no current plan to terminate the Qualcomm ALA, while reserving its rights pending the outcome of the ongoing litigation.

Contingent Losses and Other Considerations:

Litigation and investigations are inherently uncertain, and we face difficulties in evaluating or estimating likely outcomes or ranges of possible loss, particularly in antitrust and trade regulation investigations.

We have no t recorded any accrual at September 29, 2024 for contingent losses associated with the pending matters described above based on our belief that losses, while reasonably possible, are not probable.

We have no t recorded any accrual at September 28, 2025 for contingent losses associated with the matters described above based on our belief that losses, while reasonably possible, are not probable.

Further, any possible amount or range of loss cannot be reasonably estimated at this time.

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.

We are engaged in numerous other legal actions not described above (for example, our 2010 European Commission matter relating to the Icera complaint, and other matters arising in the ordinary course of our business, including those relating to employment matters or the initiation or defense of proceedings relating to intellectual property rights) and, while there can be no assurance, we believe that the ultimate outcome of these other legal actions will not have a material adverse effect on our business, results of operations, financial condition or cash flows.

We are engaged in numerous other legal actions not described above (including matters arising in the ordinary course of our business, such as

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

those relating to employment matters or the initiation or defense of proceedings relating to intellectual property rights, among others) and, while there can be no assurance, we believe that the ultimate outcome of these other legal actions will not have a material adverse effect on our business, results of operations, financial condition or cash flows.

Indemnifications .

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Further, any possible range of loss cannot be reasonably estimated at this time.

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Purchase Obligations .

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Such agreements include multi-year capacity purchase commitments with certain suppliers of our integrated circuit products.

Total advance payments related to multi-year capacity purchase commitments recorded on the consolidated balance sheets at September 29, 2024 and September 24, 2023 were $ 3.0 billion and $ 3.3 billion, respectively, of which $ 765 million and $ 404 million were recorded in other current assets, respectively, and $ 2.2 billion and $ 2.9 billion were recorded in other assets, respectively.

Total advance payments related to multi-year capacity purchase commitments recorded on the consolidated balance sheets at September 28, 2025 and September 29, 2024 were $ 1.9 billion and $ 3.0 billion, respectively, of which $ 1.5 billion and $ 765 million were recorded in other current assets, respectively, and $ 357 million and $ 2.2 billion were recorded in other assets, respectively.

Integrated circuit product inventory obligations represent purchase commitments (including those under multi-year capacity purchase commitments to the extent such minimum amounts are both fixed and determinable) for raw materials, semiconductor die, finished goods and manufacturing services, such as wafer bump, probe, assembly and final test.

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We lease certain of our land, facilities and equipment under operating leases, with terms ranging from less than one year to 20 years, some of which include options to extend for up to 20 years.

At September 29, 2024 and September 24, 2023, the weighted-average remaining lease term for operating leases was nine years and eight years , respectively.

Operating lease expense for fiscal 2024, 2023 and 2022 was $ 184 million, $ 204 million and $ 207 million, respectively.

At September 28, 2025 and September 29, 2024, the weighted-average remaining lease term for operating leases was eight years and nine years , respectively.

Operating lease expense was $ 184 million for both fiscal 2025 and 2024 and $ 204 million for fiscal 2023.

At September 28, 2025, other assets included $ 735 million of operating lease assets, with corresponding lease liabilities of $ 102 million recorded in other current liabilities and $ 730 million recorded in other liabilities .

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At September 28, 2025, future lease payments under our operating leases were as follows (in millions):

September 29,

Thereafter 461

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QCT develops and supplies integrated circuits and system software with advanced connectivity and high-performance, low-power computing technologies for use in mobile devices;

automotive systems for connectivity, digital cockpit and ADAS/AD;

automotive systems for connectivity, digital

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

cockpit and ADAS/AD;

and IoT including consumer electronic devices, industrial devices and edge networking products.

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Our QSI (Qualcomm Strategic Initiatives) reportable segment makes strategic investments.

We also have nonreportable segments, including QGOV (Qualcomm Government Technologies) and our cloud computing processing initiative.

Our CODM allocates resources to and evaluates the performance of our segments based on revenues and earnings (loss) before income taxes (EBT).

Segment EBT includes the allocation of certain corporate expenses to the segments, including depreciation and amortization expense related to certain corporate assets.

We also have nonreportable segments, including QGOV (Qualcomm Government Technologies) and our Data Center business (formerly referred to as our cloud computing processing initiative).

Our CODM uses revenues and earnings (loss) before income taxes (EBT) to evaluate performance and allocate resources for our segments primarily through our budget and forecasting process.

Our CODM primarily uses these metrics by comparing actual results to forecasted and prior period results.

Segment EBT includes the allocation of certain corporate expenses to the segments, including depreciation and amortization expense (the majority of which is allocated to QCT).

Certain income and charges are not allocated to segments in our management reports because they are not considered in evaluating the segments’ operating performance.

Unallocated income and charges include certain interest expense, certain net investment income, share-based compensation, gains and losses on our deferred compensation plan liabilities and related assets and certain research and development (R&D) expenses, certain selling, general and administrative (SG&A) expenses and other expenses or income that were deemed to be not directly related to the businesses of the segments.

Additionally, unallocated charges include amortization of certain intangible assets and certain other acquisition-related charges, third-party acquisition and integration services costs and certain other items, which may include major restructuring and restructuring-related costs, asset impairment charges and awards, settlements and/or damages arising from legal or regulatory matters and recognition of the step-up of inventories and property, plant and equipment to fair value.

Our CODM does not evaluate our operating segments using discrete asset information.

The table below presents revenues, EBT and significant expense categories regularly provided to the CODM for reportable segments (in millions):

2025 2024 2023

$ 38,367 $ 33,196 $ 30,382

Cost of revenues

19,302 16,648 15,367

Operating expenses (R&D and SG&A)

7,395 7,021 7,091

$ 11,670 $ 9,527 $ 7,924

$ 5,582 $ 5,572 $ 5,306

Costs and expenses (1)

1,539 1,545 1,678

$ 4,043 $ 4,027 $ 3,628

$ — $ 18 $ 28

Cost of revenues

Operating expenses

Investment and other income (expense), net

193 105 ( 13 )

$ 180 $ 104 $ ( 12 )

(1) Substantially all of QTL’s costs and expenses are comprised of operating expenses .

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

expenses, certain selling, general and administrative expenses and other expenses or income that were deemed to be not directly related to the businesses of the segments.

Additionally, unallocated charges include recognition of the step-up of inventories and property, plant and equipment to fair value, amortization of certain intangible assets and certain other acquisition-related charges, third-party acquisition and integration services costs and certain other items, which may include major restructuring and restructuring-related costs, asset impairment charges and awards, settlements and/or damages arising from legal or regulatory matters.

Our CODM does not evaluate our operating segments using discrete asset information.

The table below presents revenues and EBT for reportable segments (in millions):

Consolidated revenues and EBT include the following reconciling items (in millions):

2025 2024 2023

QCT $ 33,196 $ 30,382 $ 37,677

QTL 5,572 5,306 6,358

Reconciling items 176 104 134

Total $ 38,962 $ 35,820 $ 44,200

QCT $ 9,527 $ 7,924 $ 12,837

QTL 4,027 3,628 4,628

QSI 104 ( 12 ) ( 279 )

Reconciling items ( 3,322 ) ( 4,097 ) ( 2,188 )

Total $ 10,336 $ 7,443 $ 14,998

Reconciling items for revenues and EBT in the previous table were as follows (in millions):

Reportable segments

$ 43,949 $ 38,786 $ 35,716

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$ 44,284 $ 38,962 $ 35,820

Unallocated revenues

Reportable segments

$ 15,893 $ 13,658 $ 11,540

Nonreportable segments ( 39 ) ( 14 ) ( 38 )

Unallocated revenues

Unallocated cost of revenues ( 270 ) ( 229 ) ( 205 )

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Unallocated selling, general and administrative expenses ( 783 ) ( 781 ) ( 588 )

Unallocated other (expense) income (Note 2)

Unallocated other expense (Note 2)

( 39 ) ( 179 ) ( 862 )

Unallocated interest expense ( 664 ) ( 697 ) ( 694 )

Unallocated investment and other income (expense), net

855 364 ( 91 )

Nonreportable segments ( 14 ) ( 38 ) ( 24 )

Unallocated investment and other income, net

$ 12,663 $ 10,336 $ 7,443

Certain revenues were not allocated to our segments in our management reports because they were not considered in evaluating segment results.

Unallocated revenues in fiscal 2025 were comprised of licensing revenues resulting from a recent settlement of a licensing dispute.

The net book value of long-lived tangible assets located outside of the U.S.

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was $ 2.0 billion and $ 1.9 billion at September 28, 2025 and September 29, 2024, respectively.

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Beginning in fiscal 2024, revenues by country are presented based on our customer’s/licensee’s headquarter location and were as follows (in millions):

We report revenues by country based on our customer’s/licensee’s headquarters.

As a result, the revenues by country presented herein are not necessarily indicative of the country in which the device containing our products and/or intellectual property are ultimately sold to consumers.

Revenues by country were as follows (in millions, except percentages):

2025 2024 2023

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$ 44,284 100 % $ 38,962 100 % $ 35,820 100 %

Previously, revenues by country were presented based on the location to which our products or services were delivered.

For QCT, this was the country in which our customers manufacture their products and for licensing revenues, the invoiced addresses of our licensees, and was not necessarily indicative of either the country in which the devices containing our products and/or intellectual property are ultimately sold to consumers or the country in which the companies that sell the devices were headquartered.

We believe this change generally provides a better representation of the geographic profile of our revenues.

However, it is still not necessarily indicative of the country in which the devices containing our products and/or intellectual property are ultimately sold to consumers.

Prior period information has been recast to reflect this change.

For comparative purposes, based on the location to which our products or services are delivered, revenues from sales into China (including Hong Kong), United States, South Korea, and Vietnam were 66 %, 3 %, 7 %, and 12 % of total revenues, respectively, for fiscal 2024.

On June 9, 2025, we announced that we reached an agreement to acquire Alphawave IP Group plc (Alphawave) at an implied enterprise value of approximately $ 2.4 billion (as of the announcement date).

The purchase price will be paid in cash or, if validly elected by eligible shareholders of Alphawave, in shares of our common stock or securities exchangeable for shares of our common stock (Stock Consideration).

The accounting purchase price we record for the transaction could differ significantly from the aforementioned amount due to movements in the price of our common stock and the number of Alphawave shareholders that elect for Stock Consideration, among other factors.

Alphawave is a developer of high-speed wired connectivity and compute technologies delivering IP, custom silicon, connectivity products and chiplets.

The acquisition aims to further accelerate, and provide key assets for, our expansion into data centers.

The acquisition was approved by the requisite majority of Alphawave’s shareholders on August 5, 2025.

The acquisition is subject to certain other closing conditions, including receipt of regulatory approvals.

Subject to the satisfaction of these conditions, this acquisition is expected to complete during the first quarter of calendar 2026.

In connection with the pending acquisition, we agreed to restrict the use of $ 2.3 billion in cash, which is presented as restricted cash on our consolidated balance sheet, for the purpose of satisfying payment of the consideration to effect the acquisition.

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

During fiscal 2025, we acquired seven businesses for a total accounting purchase price of $ 668 million.

These acquisitions were primarily for the purpose of executing on certain products and technology that support our diversification strategy in QCT industrial IoT and automotive.

The acquired assets primarily consisted of $ 122 million of intangible assets and $ 526 million of goodwill, which was allocated to our QCT segment and which is primarily attributable to assembled workforce and certain synergies expected to arise after the acquisition.

Fair Value Measurements and Marketable Securities

The following table presents our fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at September 28, 2025 (in millions):

Level 1 Level 2 Level 3 Total

Level 1 Level 2 Total

Cash equivalents $ 2,890 $ 437 $ 3,327

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Other investments (1)

1,099 — 1,099

Total assets measured at fair value $ 4,451 $ 4,669 $ 9,120

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Other liabilities (1)

1,095 — 1,095

Total liabilities measured at fair value $ 1,095 $ 163 $ 1,258

(1) Other investments and other liabilities included in Level 1 are comprised of our deferred compensation plan assets and liabilities.

QUALCOMM Incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At September 29, 2024 and September 24, 2023, our marketable securities were all classified as current and were primarily comprised of available-for-sale debt securities (substantially all of which were corporate bonds and notes).

At September 28, 2025 and September 29, 2024, our marketable securities were all classified as current and were primarily comprised of available-for-sale debt securities (the vast majority of which were corporate bonds and notes).

The contractual maturities of available-for-sale debt securities were as follows (in millions):

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One to five years 2,431

Five to ten years 9

No single maturity date 802

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures