Qualcomm reported revenue of $9.9 billion for its fiscal third quarter ended June 28, 2026, down 4% from $10.4 billion a year earlier. GAAP diluted earnings per share came in at $1.87, and non-GAAP diluted earnings per share were $2.21.
Net income was $2 billion on a GAAP basis, down 25% year over year, while non-GAAP net income was $2.4 billion, down 23%. The company said the results came in at the high end of its guidance despite a challenging memory and supply environment.
Combined QCT Automotive and IoT revenues grew 28% year over year. Qualcomm noted that its Automotive business has now posted 23 consecutive quarters of double-digit year-over-year revenue growth. During the quarter, Qualcomm completed its acquisition of Modular Inc, which the company said creates an open software foundation for generative and agentic artificial intelligence.
Within the QCT segment, total revenues were $8.5 billion, down 5% year over year, with segment earnings before taxes falling 18% to $2.2 billion. Handset revenues declined 20% to $5.1 billion, while Automotive revenues rose 61% to $1.6 billion and IoT revenues increased 9% to $1.8 billion.
The QTL licensing segment generated $1.3 billion in revenue, down 3% year over year, with earnings before taxes of $881 million. Qualcomm returned $2.3 billion to stockholders during the quarter, including $973 million, or $0.92 per share, in cash dividends and $1.4 billion used to repurchase 8 million shares of common stock.
Qualcomm said the semiconductor industry is experiencing a broad-based increase in input costs across wafer fabrication, assembly, test, advanced packaging, memory, and other materials. The company said it is adjusting product pricing in response, with the changes expected to benefit gross margins over time.
For its fiscal fourth quarter of 2026, the company guided to revenues of $9.7 billion to $10.5 billion, including QCT revenues of $8.4 billion to $9 billion and QTL revenues of $1.2 billion to $1.4 billion. GAAP diluted earnings per share are expected between $1.22 and $1.42, and non-GAAP diluted earnings per share are expected between $2.05 and $2.25.
The company reiterated targets outlined at its recent Investor Day, including a goal to reach $40 billion in non-handset revenues by fiscal 2029. Qualcomm said it expects year-over-year growth in non-handset revenues, including Data Center, to accelerate from 24% in fiscal 2026 to more than 60% in fiscal 2027.
KEY QUOTE:
Despite a challenging memory and supply environment, our third quarter results reflect solid execution of our growth strategy, with quarterly revenues at the high end of guidance. We are well positioned to execute on the vision we outlined at our recent Investor Day, with total non-handset revenues growing to $40 billion by fiscal 2029, nearly double the target we shared in November 2024. In the near term, we expect year-over-year growth in non-handset revenues, including Data Center, to accelerate from 24 percent in fiscal 2026 to greater than 60 percent in fiscal 2027, a significant inflection point in the execution of our growth strategy.
Cristiano Amon, President and CEO of Qualcomm Incorporated
