A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
In Q3 FY2026, Qualcomm reported revenue of $9.95B (down 4% YoY) and net income of $2.00B (down 25% YoY) as handset semiconductor declines were partially offset by growth in Automotive and IoT segments.
Revenue
$9.95B
-4.03% YoY
EPS (Diluted)
$1.87
-23.05% YoY
Operating Income
$1.63B
-41.13% YoY
Qualcomm (QCOM) reported Q3 FY2026 revenue of $9.95B, down 4.0% year over year. The company posted net income of $2B, down 24.9% from a year earlier, with diluted EPS of $1.87. Operating income was $1.63B, down 41.1% year over year. QCOM's fiscal Q3 FY2026 corresponds to calendar Q2 2026.
Qualcomm's Q3 FY2026 revenue fell 4% YoY to $9.95B and net income declined 25% YoY to $2.00B due to handset market weakness and higher R&D investments, partially cushioned by record Automotive revenue.
Last 4 quarters: 4 beats
QCT semiconductor segment revenues declined 5% YoY to $8.50B. Handset revenues fell 20% YoY to $5.09B due to lower OEM shipments caused by customer build adjustments from memory supply constraints. However, Automotive revenue surged 61% YoY to $1.59B and IoT revenue grew 9% YoY to $1.83B.
Source: 10-Q Item 2 MD&A, p.22
R&D expenses grew 17.1% YoY to $2.61B due to increased investments in wireless and IC technologies and lower non-recurring engineering reimbursements. SG&A expenses rose 26.6% YoY to $976M, impacted by a transition to two-year equity incentive awards for non-executive leadership.
Source: 10-Q Item 2 MD&A, p.20
Investment and other income net increased by $656M YoY to $1.01B, primarily due to net gains from initial public offerings of QSI equity investments. Additionally, Qualcomm released a $5.7B valuation allowance on federal deferred tax assets in Q2 FY2026 after IRS Notice 2026-07 resolved CAMT exposure.
Source: 10-Q Item 2 MD&A, p.21
Management anticipates ongoing memory supply constraints and rising input costs across packaging and fab processes to weigh on OEM demand and gross margins. Furthermore, Apple's transition to its in-house modem is expected to increasingly reduce QCT revenues and cash flows in future periods.
Source: 10-Q Item 2 MD&A, p.24
Major handset customers such as Apple, Samsung, and Xiaomi are actively developing internal integrated circuits. Apple is expected to increasingly replace Qualcomm modems with its internal modem products, which will severely impact QCT revenues, profitability, and cash flows.
Source: 10-Q Item 1A, p.29-30
Qualcomm derives a significant portion of revenue from Chinese OEMs and sales into China. U.S. and Chinese export controls, tariffs, or trade restrictions—such as the May 2024 revocation of Huawei export licenses—could prevent Qualcomm from transacting business or accelerate Chinese OEM domestic chip adoption.
Source: 10-Q Item 1A, p.30-31
The industry faces broad-based cost increases and capacity constraints across wafer fabrication, testing, and memory components. Higher product costs from key suppliers threaten Qualcomm's gross margins, while component shortages could lead to lost OEM orders.
Source: 10-Q Item 1A, p.24
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
Qualcomm (QCOM) is next expected to report on , when the following quarter's results and any updated outlook will be available.
See the QCOM earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $9.95B | $10.37B | -4.03% |
Cost of Revenue | $4.67B | $4.61B | +1.39% |
Operating Income | $1.63B | $2.76B | -41.13% |
Net Income | $2B | $2.67B | -24.91% |
EPS (Basic) | $1.89 | $2.44 | -22.54% |
EPS (Diluted) | $1.87 | $2.43 | -23.05% |
R&D Expense | $2.61B | $2.23B | +17.12% |
SG&A Expense | $976M | $771M | +26.59% |
In Q3 FY2026, Qualcomm generated $9.95B in total revenue (down 4.0% YoY) and $2.00B in net income (down 24.9% YoY). Diluted earnings per share were $1.87, compared to $2.43 in Q3 FY2025.
QCT semiconductor segment revenues decreased 5% YoY to $8.50B, as Handsets revenue declined 20% to $5.09B while Automotive grew 61% to $1.59B and IoT rose 9% to $1.83B. QTL licensing segment revenues decreased 3% YoY to $1.28B.
Qualcomm highlighted risks from customer vertical integration, particularly Apple's transition toward its internal modems, ongoing memory supply constraints affecting smartphone OEM build plans, and U.S./China trade protection policies impacting revenue in China.
Qualcomm (QCOM) is next expected to report earnings on Nov 3, 2026. The date comes from the analyst earnings calendar and can shift until the company confirms it.
Expected release date, analyst estimates & what to watch
In Q2 FY2026, QCOM reported a significant increase in net income and EPS despite a slight decline in revenue, driven by cost management and strategic share buybacks.
QCOM delivered Q1 FY2026 revenue of $12.25B (+5.0% YoY), but net income fell 5.5% to $3.0B as surging R&D (+10.0%) and SG&A (+19.6%) costs compressed operating margin by ~300 basis points to 27.5%.
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