Qualcomm 8-K
NegativeEarningsNew guidance
QCT handset declines outweighed automotive and IoT growth; pricing actions aim to offset higher input costs.
Filed 2026-07-29 16:01 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 FY2026 results with Q4 guidance. Revenue was $9.95B, down 4% Y/Y, amid challenging memory and supply conditions; Qualcomm said results were at the high end of guidance. Automotive and IoT growth was offset by lower handset revenue. The company completed its acquisition of Modular Inc., creating an open software foundation for generative and agentic AI.
Key Figures
| Metric | Q3 FY2026 | Q3 FY2025 | Y/Y |
|---|---|---|---|
| Revenue | $9.95B | $10.4B | -4% |
| Operating income | $1.63B | $2.76B | -41% |
| Operating income, non-GAAP | $2.78B | $3.58B | -22% |
| Net income | $2.00B | $2.67B | -25% |
| Net income, non-GAAP | $2.36B | $3.04B | -23% |
| Diluted EPS | $1.87 | $2.43 | -23% |
| Diluted EPS, non-GAAP | $2.21 | $2.77 | -20% |
- QCT handset revenue fell 20% to $5.09B; automotive revenue rose 61% to $1.59B and IoT revenue rose 9% to $1.83B. Combined QCT automotive and IoT revenue grew 28%.
- Returned $2.3B to stockholders: $973M in dividends ($0.92 per share) and $1.4B to repurchase 8M shares. Outstanding shares declined 17M from FY-end to 1.057B.
- For the nine months ended 6/28/2026, net income was $12.4B vs $8.66B; operating cash flow was $8.41B vs $10.0B, and FCF (operating cash flow less capital expenditures) was $6.83B vs $9.23B.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue | Q4 FY2026 | $9.7B-$10.5B | — | — |
| QCT revenue | Q4 FY2026 | $8.4B-$9.0B | — | — |
| QTL revenue | Q4 FY2026 | $1.2B-$1.4B | — | — |
| Diluted EPS, GAAP | Q4 FY2026 | $1.22-$1.42 | — | — |
| Diluted EPS, non-GAAP | Q4 FY2026 | $2.05-$2.25 | — | — |
| Non-handset revenue growth | FY2027 | >60% Y/Y | — | — |
| Non-handset revenue | FY2029 | $40B | — | — |
Qualcomm expects pricing actions in response to higher industry input costs to benefit gross margins over time as they take effect. The FY2027 growth outlook compares with 24% non-handset revenue growth in FY2026.
Investor Takeaways
- Track Q4 results against the revenue and EPS ranges, with higher input costs and the gradual effect of pricing actions shaping the margin outlook.
- Watch whether non-handset revenue growth accelerates to the stated FY2027 pace, including growth from Data Center, and progresses toward the FY2029 target.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3