◆ Inside the Latest Quarter (Q3 FY2026)

Qualcomm (QCOM) — the variant view

Handsets down twenty percent, automotive up sixty-one, and the non-handset target doubled on the same call.

📈 QCOM valuation, revenue & earnings — P/E, P/S, revenue, EPS →

Qualcomm's June 2026 quarter was the one where the thing everybody had been waiting for started showing up in the numbers.

Qualcomm Q3 FY2026 ($M)$9,947M -4%Revenue$5,086M -20%Handsets$1,588M +61%Automotive$1,472M flatLicensingNon-GAAP EPS $2.21, at the top of the revenue guide and short of the Street on earnings.
The quarter the thing everybody was waiting for showed up in the numbers.

The headline. Revenue of $9.95 billion, down from $10.37 billion a year earlier, with non-GAAP EPS of $2.21 — at the top of the revenue guidance and short of the Street on earnings.1 Net income was $2.00 billion against $2.67 billion. Research and development rose to $2.61 billion from $2.23 billion and selling, general and administrative to $976 million from $771 million: costs going up while revenue goes down, which is what a company funding a pivot looks like.

Underneath, two lines moving in opposite directions. QCT handset revenue was $5.09 billion, down 20%, which management attributed to memory supply constraints, higher input costs feeding device pricing, and inventory adjustments at large customers — on top of Apple.2 Automotive was $1.59 billion, up 61%. IoT was $1.83 billion, up 9%. Total QCT revenue fell 5%. Licensing was flat at $1.47 billion, which is what a toll is supposed to do.

The guidance is where the quarter actually landed. Fourth-quarter revenue of $9.7–10.5 billion and non-GAAP EPS of $2.05–2.25 both came in below consensus near $10.02 billion and $2.36, and management said Apple-related revenue would fall roughly 50% between the September and December quarters. At the same time it doubled the fiscal 2029 non-handset revenue target to $40 billion. The chief executive's framing was that the data centre has "kind of replaced" Apple — a claim about the future stated in the past tense.

The tax line, again. Nine-month net income of $12.38 billion against $8.66 billion a year earlier looks like a boom and is not: it includes a $4.14 billion income tax benefit as the fiscal 2025 valuation allowance reversed, against a $1.03 billion expense in the comparable period. Nine-month revenue was $32.80 billion against $33.01 billion — flat.

Nothing here changed the thesis; it dated it. The number to watch is quarterly handset revenue against automotive plus IoT. The quarter those two lines cross is the quarter Qualcomm stops being a phone company, and on current trajectories it is closer than the share price implies.

References
  1. ReportedRevenue of $9.95 billion, down from $10.37 billion a year earlier, with non-GAAP EPS of $2.21 — at the top of the revenue guidance and short of the Street on earnings.
    Qualcomm Incorporated, Form 10-Q for the quarter ended 28 June 2026 (SEC, CIK 804328). Revenues $9,947M for the quarter against $10,365M a year earlier, and $32,798M for the nine months against $33,013M; equipment and services $8,475M ($8,893M) and licensing $1,472M ($1,472M). Cost of revenues $4,670M, research and development $2,607M ($2,226M), selling, general and administrative $976M ($771M). Income before income taxes $2,462M ($2,952M); income tax expense $460M for the quarter, and a $4,136M income tax benefit for the nine months against a $1,034M expense — net income $2,002M ($2,666M) for the quarter and $12,377M ($8,658M) for the nine months. Diluted earnings per share $1.87 ($2.43) on 1,069 million diluted shares (1,099). QCT revenue streams for the quarter: handsets $5,086M ($6,328M), automotive $1,588M ($984M), IoT $1,830M ($1,681M), total QCT $8,504M ($8,993M). — Q3 FY2026 · publ. 2026-07-29 · source ↗
  2. ReportedQCT handset revenue was $5.09 billion, down 20%, which management attributed to memory supply constraints, higher input costs feeding device pricing, and inventory adjustments at large customers — on top of Apple.
    Coverage of Qualcomm's third-quarter fiscal 2026 results, July 2026 — revenue of $9.9 billion and non-GAAP earnings per share of $2.21, meeting the high end of revenue guidance and short of consensus on earnings. QCT handset revenue of $5.09 billion declined 20% year over year on industry-wide memory supply constraints, higher input costs affecting device pricing and demand, and inventory adjustments at major OEMs; automotive revenue of $1.59 billion rose 61% and IoT of $1.83 billion rose 9%. Management said a sharper-than-expected reduction in Apple modem-related sales contributed to a lighter fourth-quarter outlook, with Apple-related revenues expected to fall by approximately 50% between the September and December quarters, and doubled the fiscal 2029 non-handset revenue target to $40 billion. Fourth-quarter guidance was $9.7-10.5 billion of revenue and $2.05-2.25 of non-GAAP diluted EPS, both below consensus near $10.02 billion and $2.36. — Q3 FY2026 · publ. 2026-07-30 · source ↗
Sources
Generated September 23, 2026