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QCOM · Q3 FY2026
Archived report (Q3 FY2026). Latest deep dive →
The quarter in brief
A resilient but margin-squeezed quarter — revenue held near guidance highs on Automotive/IoT strength, but GAAP operating income fell 41% y/y on rising costs and one-off charges, dragging net income down 25% despite a large investment-income boost.
Net Income
$2,002M
down 24.9% y/y
Total Revenue
$9,947M
down 4.0% y/y
Operating Income
$1,626M
down 41.1% y/y
Gross Profit
$5,277M
down 8.8% y/y
All figures in $M.
| Line item | Amount and change |
|---|---|
| QCT (Semiconductors) | $8,504 · −5.0% |
| QTL (Licensing) | $1,278 · −3.0% |
| Other/Reconciling | $165 · n/a |
| Total Revenue | $9,947 · −4.0% |
| Cost of Revenues | $4,670 · +1.4% |
| Gross Profit | $5,277 · −8.8% · 53.1% margin |
| R&D | $2,607 · +17.1% |
| SG&A | $976 · +26.6% |
| Other Charges* | $68 · new |
| Operating Income | $1,626 · −41.1% · 16.3% margin |
| Investment & Other Income* | $836 · +134% |
| Pretax Income | $2,462 · −16.6% |
| Income Tax | $460 · +60.8% |
| Net Income | $2,002 · −24.9% · $1.87 diluted EPS |
Verdict: a resilient but margin-squeezed quarter — revenue held near guidance highs on Automotive/IoT strength, but GAAP operating income fell 41% y/y on rising costs and one-off charges, dragging net income down 25% despite a large investment-income boost.
Returned $2.3B to stockholders ($973M dividends + $1.4B buybacks); Q4 FY26 revenue guidance $9.7B-$10.5B; GAAP EPS guidance $1.22-$1.42.
Source and notation
* marks non-cash / ≈ estimated. Source: Qualcomm press release / 10-Q (SEC EDGAR).
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<figure> <a href="https://whoreportstoday.com/t/qcom/q3-fy2026"><img src="https://whoreportstoday.com/t/qcom/q3-fy2026/sankey.png" alt="QCOM Q3 FY2026: where the revenue went" loading="lazy" style="max-width:100%;height:auto"></a> <figcaption>Source: <a href="https://whoreportstoday.com/t/qcom/q3-fy2026">Who Reports Today</a>, licensed under <a href="https://creativecommons.org/licenses/by/4.0/">CC BY 4.0</a></figcaption> </figure>
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<a href="https://whoreportstoday.com/t/qcom/q3-fy2026">QCOM Q3 FY2026 earnings chart (Who Reports Today)</a>
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- QCT Automotive revenue +61% y/y (23rd straight quarter of double-digit growth); IoT +9%; but Handsets -20% y/y dragged QCT total down 5%.
- GAAP operating income fell 41% y/y mainly due to $101M acquisition-related charges, $70M restructuring costs, and higher opex across R&D/SG&A.
- Non-GAAP operating income of $2,776M vs GAAP $1,626M — a ~$1.15B gap from share-based comp ($827M), QSI, and other items.
- Investment and other income, net rose to $836M (from $358M) largely on QSI-related gains, boosting pretax income despite weak core operating income.
- Effective tax rate rose to 18.7% vs 9.7% prior year, though Non-GAAP tax rate held near 12.5% under Qualcomm's new fixed-rate methodology.
- QTL licensing revenue nearly flat (-3%) with high 69% EBT margin, remaining a stable profit anchor versus more volatile QCT hardware business.
What distorts the picture in this report and what to watch beyond the headlines.
QCOM — Qualcomm develops semiconductor and telecommunications technologies, specializing in wireless communications and mobile chipsets.
The company is headquartered in San Diego, California, and is a key player in 5G technology development.
Heads-up
- net income fell 25% y/y in Q3 FY2026
- revenue fell 4% y/y in Q3 FY2026
Net income for Q3 FY2026: $2,002M, −25% y/y. In the report's figures: revenue −4% y/y; costs grew faster than revenue: r&d +17% y/y, income tax +61% y/y, sg&a +27% y/y. Based on the Q3 FY2026 report.
Company filings on SEC EDGAR ↗Revenue for Q3 FY2026: $9,947M, −4% y/y. In the report's figures: segments down: QCT (Semiconductors) −5% y/y. Based on the Q3 FY2026 report.
Company filings on SEC EDGAR ↗More reports: ROP · Q3 2026 · SMCI · Q1 FY2027 · SNDK · Q1 FY2027 · SNPS · Q3 FY26 · STX · Q1 FY2027 · SWKS · Q4 FY2026 · TDY · Q3 2026 · TEL · Q4 FY2026 · TER · Q3 2026 · TRMB · Q2 2026 · all reports