QUALCOMM INC/DE (QCOM): Results of Operations and Financial Condition
QUALCOMM INC/DE (QCOM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FOR IMMEDIATE RELEASE Qualcomm Contact: Brett Simpson Senior Vice President, Investor Relations Phone: 1-858-658-4813 | e-mail: ir@qualcomm.com Qualcomm Announces Third Quarter Fiscal 2026 Results Revenues: $9.9 billion GAAP EPS: $1.87, Non-GAAP EPS: $2.21 —Combined
How this was made
The 30-second read
Why it matters
The filing combines a quarterly earnings print with explicit Q4 revenue and EPS ranges, and it frames a strategic shift toward non-handset revenue growth and Data Center acceleration.
Market read
Traders can update models immediately using the provided Q3 GAAP and non-GAAP EPS, segment revenue trends, and the Q4 guidance ranges.
What to watch
The guidance commentary emphasizes input-cost pass-through over time; traders may focus on gross margin trajectory and the magnitude/timing of pricing effects rather than revenue growth alone.
Qualcomm Announces Third Quarter Fiscal 2026 Results
Revenue, QCT revenue, GAAP net income and GAAP diluted EPS declined year-over-year, while Automotive revenue grew +61% and the company guided Q4 FY26 revenue to $9.7B - $10.5B.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $9,947 | – | (4%) |
| Earnings before taxes (EBT)GAAP | $2,462 | – | (17%) |
| Net incomeGAAP | $2,002 | – | (25%) |
| Diluted earnings per share (EPS)GAAP | $1.87 | – | (23%) |
| Revenuesnon-GAAP | $9,947 | – | (4%) |
| Earnings before taxes (EBT)non-GAAP | $2,693 | – | (24%) |
| Net incomenon-GAAP | $2,356 | – | (23%) |
| Diluted earnings per share (EPS)non-GAAP | $2.21 | – | (20%) |
| QCT EBTother | $2,192 | – | (18%) |
| QCT EBT as % of revenuesother | 26% | – | -4 points |
| QTL EBTother | $881 | – | (6%) |
| QTL EBT as % of revenuesother | 69% | – | -2 points |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| QCTQCT revenue streams included Handsets, Automotive and IoT (internet of things). | $8,504 | – | (5%) |
| QTLQualcomm Incorporated includes its licensing business, QTL, and the vast majority of its patent portfolio. | $1,278 | – | (3%) |
| HandsetsReported as a QCT revenue stream. | $5,086 | – | (20%) |
| AutomotiveReported as a QCT revenue stream; the company stated QCT Automotive revenues achieved 23 consecutive quarters of double-digit year-over-year growth. | 1,588 | – | +61% |
| IoT (internet of things)Reported as a QCT revenue stream. | 1,830 | – | +9% |
Q4 FY26 Estimates outlook
- Revenue$9.7B - $10.5B
- NoteQCT revenues $8.4B - $9.0B
- NoteQTL revenues $1.2B - $1.4B
- NoteGAAP diluted EPS $1.22 - $1.42
- NoteLess diluted EPS attributable to QSI $—
- NoteLess diluted EPS attributable to share-based compensation ($0.72)
- NoteLess diluted EPS attributable to other items ($0.11)
- NoteNon-GAAP diluted EPS $2.05 - $2.25
Capital returns
- During the third quarter of fiscal 2026, we returned $2.3 billion to stockholders.
- $973 million, or $0.92 per share, of cash dividends paid.
- $1.4 billion through repurchases of 8 million shares of common stock.
What drove it
- Automotive revenue was 1,588, up +61% year-over-year.
- IoT (internet of things) revenue was 1,830, up +9% year-over-year.
- The company completed the acquisition of Modular Inc, creating an open software foundation for generative and agentic AI.
- The company is taking actions to reflect higher input costs in product pricing and expects those actions to benefit gross margins over time as pricing changes gradually come into effect.
Concerns
- Handsets revenue was $5,086, down (20%) year-over-year.
- QCT revenues were $8,504, down (5%) year-over-year, and QCT EBT as % of revenues declined to 26% from 30%.
- QTL revenues were $1,278, down (3%) year-over-year, and QTL EBT as % of revenues declined to 69% from 71%.
- The semiconductor industry is experiencing a broad-based increase in input costs across wafer fabrication, assembly, test, advanced packaging, memory and other materials.
What to watch
- Q4 FY26 revenue guidance of $9.7B - $10.5B.
- Q4 FY26 QCT revenue guidance of $8.4B - $9.0B and QTL revenue guidance of $1.2B - $1.4B.
- The impact of product-pricing actions on gross margins over time.
- The company's expectation for year-over-year growth in non-handset revenues, including Data Center, to accelerate from 24% in fiscal 2026 to greater than 60% in fiscal 2027.
- The stated target for total non-handset revenues to grow to $40 billion by fiscal 2029.
Analysis
Qualcomm reported Q3 Fiscal 2026 GAAP revenues of $9,947, down (4%) from $10,365 in Q3 Fiscal 2025. GAAP EBT declined (17%) to $2,462, GAAP net income declined (25%) to $2,002, and GAAP diluted EPS declined (23%) to $1.87. Non-GAAP net income was $2,356, down (23%), while non-GAAP diluted EPS was $2.21, down (20%). The company described quarterly revenue as being at the high end of guidance, but the prior outlook was not provided with this filing text.
QCT revenue was $8,504, down (5%), led by a (20%) decline in Handsets revenue to $5,086. Automotive was the principal growth contributor, rising +61% to 1,588, while IoT revenue increased +9% to 1,830. QCT EBT fell (18%) to $2,192 and QCT EBT as a percentage of revenues fell to 26% from 30%, showing that the lower handset revenue coincided with reduced segment profitability.
QTL revenue was $1,278, down (3%), with EBT declining (6%) to $881. QTL EBT as a percentage of revenues was 69%, compared with 71% in Q3 Fiscal 2025. The company also flagged a broad-based increase in semiconductor input costs, including wafer fabrication, assembly, test, advanced packaging, memory and other materials. Qualcomm stated that product-pricing actions are intended to reflect these higher costs and benefit gross margins over time.
For Q4 FY26, Qualcomm guided revenues to $9.7B - $10.5B, including QCT revenues of $8.4B - $9.0B and QTL revenues of $1.2B - $1.4B. GAAP diluted EPS guidance is $1.22 - $1.42 and non-GAAP diluted EPS guidance is $2.05 - $2.25. Capital returns totaled $2.3 billion during the quarter, including $973 million of cash dividends and $1.4 billion of repurchases of 8 million shares of common stock. The filing also highlights the completed acquisition of Modular Inc and management's stated fiscal 2027 and fiscal 2029 ambitions for non-handset revenue growth.
Management, verbatim
Despite a challenging memory and supply environment, our third quarter results reflect solid execution of our growth strategy, with quarterly revenues at the high end of guidance.
Cristiano Amon, President and CEO of Qualcomm Incorporated
We are well positioned to execute on the vision we outlined at our recent Investor Day, with total non-handset revenues growing to $40 billion by fiscal 2029 – nearly double the target we shared in November 2024.
Cristiano Amon, President and CEO of Qualcomm Incorporated
In the near term, we expect year-over-year growth in non-handset revenues, including Data Center, to accelerate from 24% in fiscal 2026 to greater than 60% in fiscal 2027 – a significant inflection point in the execution of our growth strategy.
Cristiano Amon, President and CEO of Qualcomm Incorporated
Not in the filing
stated, not guessed- Prior-quarter revenue, EBT, net income and EPS comparisons
- Gross profit and gross margin for the reported period
- Operating income and operating margin for the reported period
- Operating expenses
- Tax rate
- Operating cash flow
- Free cash flow
- Cash and cash equivalents
- Debt
- Q4 FY26 gross-margin guidance
- Q4 FY26 operating-expense guidance
- Q4 FY26 tax-rate guidance
- Previous-release outlook needed for comparison of actual results with prior guidance
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is Qualcomm’s SEC Form 8-K (Item 2.02) with its fiscal third quarter results for the period ended June 28, 2026, plus Q4 FY26 guidance and segment breakdown.
Ticker impact
Qualcomm reported fiscal Q3 results and issued Q4 guidance, including GAAP diluted EPS $1.22-$1.42 and non-GAAP $2.05-$2.25.
Likely two-way reaction depending on whether investors focus on handset weakness versus the guided acceleration in non-handset revenues and Data Center.
The filing provides fresh, decision-relevant datapoints: quarterly revenue/EPS prints, segment revenue mix, capital return, and explicit Q4 revenue and EPS ranges plus management’s non-handset growth inflection narrative.
Market effects
Semis and mobile/edge AI supply-chain participants may reprice expectations for handset demand versus automotive/IoT and data center-related compute demand.
Primarily US-listed large-cap semiconductor sentiment; limited direct regional read-through beyond investor positioning.
Global wireless and AI infrastructure demand expectations may shift, especially for Qualcomm’s data center and licensing outlook.
Counterpoint
Investors may discount the non-handset acceleration target if handset weakness persists longer than management’s pricing and margin phasing assumptions.
Key entities
- issuerQualcomm Incorporated
Reports Q3 fiscal 2026 results, segment performance (QCT and QTL), capital return, and provides Q4 FY26 guidance.
- executiveCristiano Amon
CEO quote framing execution of the growth strategy and non-handset revenue targets.
