Marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Risk Factors 275 words changed in this paragraph; it is 32% similar to last year's version.
We Although we expect to derive an increasing portion of our revenues from areas outside of mobile handsets, such as automotive, IoT and data center, we continue to derive a significant portion of our revenues from a small number of mobile handset customers and licensees, and particularly from their sale of premium-tier handset devices, and we expect this trend to continue devices. Device share in the foreseeable future. The mobile industry is experiencing and may continue to experience concentration of device share among a few companies, industry, particularly at the premium tier, contributing to this trend. Certain is concentrated among a few companies, including Apple, Samsung and certain Chinese original equipment manufacturers (OEMs) (OEMs), many of whom are or have increased and may continue to increase their device share in China and in certain regions outside the past been our largest customers. This concentration means that the loss of China, and we derive any one of our key mobile handset customers, or a significant portion reduction in purchases from any such customer, whether due to such customer’s use of their own integrated circuit products (i.e., vertical integration) or our competitors’ integrated circuit products, government restrictions, a decline in global, regional or local economic conditions, a decline in consumer demand or any other reason, would have a significant negative impact on our business. For example, Apple has historically purchased our modem products for use in its devices and has historically been one of our revenues from largest customers, but we expect that Apple will primarily use its own internally developed modem products, rather than our products, in its devices going forward. This will have a small number significant negative impact on our QCT revenues, results of these OEMs operations and cash flows, and our ability to offset that impact depends on the timing and magnitude of growth in our non-handset revenues, including in automotive, IoT and data center, which may not occur as well. anticipated. See also “Notes to Consolidated Financial Statements, Note 2. Composition of Certain Financial Statement Items - Concentrations.”
Source: Item 1A, 10-K 0000804328-26-000128 vs Item 1A, 10-K 0000804328-25-000085
MD&A 192 words changed in this paragraph; it is 35% similar to last year's version.
Beginning Deferred tax assets represent amounts available to reduce income taxes payable on taxable income in fiscal 2023 and through fiscal 2025, for federal income tax purposes, we were required future years. We record a valuation allowance 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 reduce deferred tax asset was established at assets to the statutory rate amount that is more likely than not to be realized. Factors considered in this determination include assessing the adequacy of 21% (rather than future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies, and considering that most of our income is taxed in the current effective tax rate U.S., of 13% after considering the FDII deduction), capitalization favorably affected our total provision which a significant portion qualifies 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. preferential treatment as FDDEI. 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.
Source: Item 7, 10-K 0000804328-26-000128 vs Item 7, 10-K 0000804328-25-000085
Legal Proceedings 165 words changed in this paragraph; it is 63% similar to last year's version.
On April 18, 2024, we filed a separate complaint (captioned complaint, captioned QUALCOMM Incorporated v. Arm Ltd.) against Holdings plc f/k/a Arm Ltd., 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. 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. On January 8, 2026, we filed a substantially identical complaint against Arm Ltd., which was subsequently consolidated with the Arm Holdings plc complaint. On March 30, 2026, our complaint against Arm Ltd. was amended to include an additional claim for breach of the Qualcomm ALA based on Arm’s failure to negotiate certain license terms in good faith. A trial was held beginning on October 5, 2026, and on October 13, 2026, the jury found that (i) Arm breached the Qualcomm ALA by failing to provide certain deliverables, (ii) Arm improperly interfered with Qualcomm’s economic relationship with a customer and (iii) Arm did not breach the Qualcomm TLA as we alleged. The court also held bench trial proceedings on certain of the claims, defenses and potential remedies that will be determined by the court in the first instance. The court has moved to dismiss our amended complaint. Trial is scheduled to begin not yet issued its decision on March 9, 2026. the bench trial issues.
Source: Item 3, via Note 7 – Commitments and Contingencies, 10-K 0000804328-26-000128 vs Item 3, via Note 7 – Commitments and Contingencies, 10-K 0000804328-25-000085
Accounting Policies 30 words changed in this paragraph; it is 82% similar to last year's version.
We are a global technology leader, helping to bring intelligent computing everywhere through the development and commercialization of foundational technologies, including on-device advanced artificial intelligence (AI), high-performance and low-power computing and advanced wireless leading connectivity. Our platforms help power intelligent devices that people products and businesses rely on every day services used around the world, across industries and applications from handsets to other areas, including automotive and automotive, the internet of things (IoT). (IoT) and data center. We derive revenues principally from sales of integrated circuit products and through the licensing of our intellectual property, including patents and other rights.
Source: 10-K text, Note 1 – Significant Accounting Policies, 10-K 0000804328-26-000128 vs 10-K text, Note 1 – Significant Accounting Policies, 10-K 0000804328-25-000085