Qualcomm Q3 Earnings Drop as Costs Rise
Qualcomm reported a 25% drop in net income to $2 billion, or $1.87 per diluted share, for its fiscal third quarter of 2026 compared to the same period last year. Revenue also declined by 4%, reaching $9.95 billion due to industrywide cost inflation across chip manufacturing and supply chain segments. The company's largest segment, handset chips, saw a 20% drop in revenue to $5.1 billion. Qualcomm plans to raise chip prices starting September 1 to offset rising input costs, with CEO Cristiano Amon stating that the changes are expected to improve gross margins over time. Meanwhile, automotive and Internet of Things segments showed strong growth, increasing by 61% and 9%, respectively. Looking ahead, Qualcomm anticipates adjusted EPS between $2.05 and $2.25 for Q4 with revenue in a similar range as analysts' expectations. The company also announced the completion of its acquisition of AI software startup Modular Inc., valued at $3.92 billion, to enhance data center capabilities.
Tickers: $QCOM
Topics: cost_inflation revenue_decline semiconductors stock_price_reaction