QUALCOMM Incorporated Q3 2026 Earnings Recap

QUALCOMM shares declined 6.9% after the quarter as investors reacted negatively to the reported margin compression in the QCT segment and cautious near-term outlook amid supply chain challenges, despite strong automotive growth and promising data center initiatives.

Key Takeaways

• Revenues came in at $9.9 billion, hitting the high end of guidance; non-GAAP EPS was $2.21.
• QCT revenues totaled $8.5 billion, with record automotive revenues and growth in IoT offset by pressure on gross margins.
• Management noted short-term margin headwinds driven by unprecedented memory prices, higher manufacturing costs, and supply chain shortages impacting mobile and consumer electronics.
• Data center efforts are ramping, with two custom silicon wins beginning revenue generation in Q4 and an engineering milestone reached on the high-bandwidth compute (HBC) solution.
• Automotive segment secured a major expanded agreement with BMW and advanced partnerships with Stellantis, supporting a robust multi-year pipeline.