# Qualcomm (QCOM) Q3 FY2026 earnings

Results filed 2026-07-29 for the quarter ended 2026-06-28. Source page: https://earnings.opennash.com/companies/qcom/2026-q3/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/804328/000080432826000085/0000804328-26-000085-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Qualcomm reported third quarter fiscal 2026 revenues of $9.9 billion, GAAP EPS of $1.87 and Non-GAAP EPS of $2.21.

Qualcomm's fiscal third-quarter revenue was $9,947 million, down 4% from a year ago, and GAAP diluted EPS fell 23% to $1.87. The decline came from handsets, where chip revenue fell 20%. Automotive grew 61% and IoT grew 9%. Management said the quarter landed at the high end of guidance despite a challenging memory and supply environment. Qualcomm returned $2.3 billion to stockholders.
For the fourth quarter, Qualcomm guided revenue of $9.7B - $10.5B and non-GAAP EPS of $2.05 - $2.25. Management expects non-handset revenue growth, including Data Center, to accelerate from 24% in fiscal 2026 to greater than 60% in fiscal 2027. The main tension is that handsets are shrinking and input costs are rising. Qualcomm says it is raising prices to offset those costs, and expects the benefit to gross margins to come gradually.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Revenues | $9,947 | down 4% from a year ago | GAAP |
| Net income | $2,002 | down 25% from a year ago | GAAP |
| Diluted EPS | $1.87 | down 23% from a year ago | GAAP |
| Non-GAAP diluted EPS | $2.21 | down 20% from a year ago | non-GAAP |
| Operating income | 1,626 | compared with 2,762 a year ago | GAAP |
| Operating cash flow (nine months) | 8,405 | compared with 10,016 in the prior-year nine months | GAAP |
| Returned to stockholders | $2.3 billion |  |  |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| QCT revenues | $8,504 | down 5% from a year ago |
| QCT Handsets | $5,086 | down 20% from a year ago |
| QCT Automotive | 1,588 | up 61% from a year ago |
| QCT IoT | 1,830 | up 9% from a year ago |
| QTL revenues | $1,278 | down 3% from a year ago |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Total revenues | fourth quarter of fiscal 2026 | $9.7B - $10.5B |
| QCT revenues | fourth quarter of fiscal 2026 | $8.4B - $9.0B |
| QTL revenues | fourth quarter of fiscal 2026 | $1.2B - $1.4B |
| GAAP diluted EPS | fourth quarter of fiscal 2026 | $1.22 - $1.42 |
| Non-GAAP diluted EPS | fourth quarter of fiscal 2026 | $2.05 - $2.25 |
| Year-over-year growth in non-handset revenues, including Data Center | fiscal 2027 | greater than 60% |
| Total non-handset revenues target | fiscal 2029 | $40 billion |

## Key takeaways

1. **Handset weakness drove the revenue decline** QCT Handsets revenue was $5,086 million, down 20% from $6,328 million a year ago, which outweighed growth elsewhere. Total revenues fell 4% to $9,947 million.
2. **Automotive and IoT continue to grow** Automotive revenue rose 61% to 1,588 million and IoT rose 9% to 1,830 million. Combined QCT Automotive and IoT revenues grew 28% year over year.
3. **Profits fell faster than revenue** Non-GAAP diluted EPS was $2.21 versus $2.77 a year ago, down 20%. R&D rose to 2,607 from 2,226 and SG&A rose to 976 from 771.
4. **Rising input costs shape the outlook** Management cited a broad-based increase in input costs and said it is raising product pricing. It expects pricing actions to benefit gross margins over time.
5. **Management targets a non-handset growth inflection** Non-handset revenue growth is expected to accelerate from 24% in fiscal 2026 to greater than 60% in fiscal 2027. The target is $40 billion of non-handset revenues by fiscal 2029.

## Questions

**What were Qualcomm's third quarter fiscal 2026 results?** Revenues were $9,947 million, down 4% from a year ago. GAAP diluted EPS was $1.87 and non-GAAP diluted EPS was $2.21.
**What is Qualcomm's guidance for the fourth quarter of fiscal 2026?** Qualcomm guided revenues of $9.7B - $10.5B and non-GAAP diluted EPS of $2.05 - $2.25. GAAP diluted EPS is guided to $1.22 - $1.42.
**How did Qualcomm's handset and automotive businesses perform?** QCT Handsets revenue fell 20% to $5,086 million, while QCT Automotive rose 61% to 1,588 million. QCT IoT grew 9% to 1,830 million.
**How much capital did Qualcomm return to stockholders?** It returned $2.3 billion in the quarter, including $973 million of cash dividends ($0.92 per share) and $1.4 billion of share repurchases covering 8 million shares.
**What is Qualcomm's long-term non-handset target?** Management expects total non-handset revenues to grow to $40 billion by fiscal 2029. It also expects growth in non-handset revenues to accelerate from 24% in fiscal 2026 to greater than 60% in fiscal 2027.