Q3 Fiscal 2026
Filed Jul 29, 2026Qualcomm 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.