QUALCOMM Reports Q3 Fiscal 2026 Results with $9.9 Billion Revenue, 25% Net Income Decline

QUALCOMM Incorporated reported its financial results for the third quarter of fiscal 2026, revealing total revenues of $9.9 billion, a decrease of 4% from $10.4 billion in the same quarter last year. The company's net income for the quarter was $2.0 billion, down 25% from $2.7 billion in the prior year. The decline in revenue was primarily attributed to a 5% decrease in the Qualcomm CDMA Technologies (QCT) segment, driven by lower handset revenues, although this was partially offset by increased automotive and Internet of Things (IoT) revenues. The Qualcomm Technology Licensing (QTL) segment also saw a 3% decline in revenues.

In terms of operational metrics, the QCT segment generated $8.5 billion in revenues, down from $9.0 billion a year earlier, with significant drops in handset revenues. However, automotive revenues increased by $604 million, reflecting a favorable mix and higher average selling prices. The IoT segment also experienced growth, contributing $1.8 billion in revenues, up from $1.7 billion. The company’s total assets rose to $57.4 billion as of June 28, 2026, compared to $50.1 billion a year prior, driven by increases in inventories and goodwill.

QUALCOMM's strategic developments included the acquisition of Alphawave IP Group plc for $2.3 billion, aimed at enhancing its capabilities in data centers. The company also completed the acquisition of Modular Inc. for approximately $3.1 billion, which is expected to bolster its software foundation for AI technologies. These acquisitions are part of QUALCOMM's broader strategy to diversify its product offerings and strengthen its position in emerging markets.

The company reported a significant increase in research and development expenses, which rose to $2.6 billion for the quarter, up from $2.2 billion in the previous year, reflecting investments in wireless and integrated circuit technologies. Selling, general, and administrative expenses also increased to $976 million, compared to $771 million a year earlier, driven by higher share-based compensation and marketing expenses. As of June 28, 2026, QUALCOMM's employee headcount was approximately 51,000, reflecting ongoing investments in talent to support its growth initiatives.

Looking ahead, QUALCOMM anticipates continued challenges due to memory supply constraints and rising input costs in the semiconductor industry, which may adversely affect demand and margins. The company expects to face intense competition, particularly from customers like Apple, which is increasingly utilizing its own modem technology. Despite these challenges, QUALCOMM remains committed to investing in key growth areas, including AI and IoT, and aims to leverage its technological leadership to drive future growth.