Qualcomm Q3 adjusted EPS misses expectations, hurt by higher input costs

QUALCOMM Incorporated

29/07/2026 21:13

Overview
U.S. semiconductor firm's fiscal Q3 revenue fell 4% yr/yr but beat analyst expectations
Adjusted EPS for fiscal Q3 missed analyst expectations, declining 20% yr/yr
Company completed Modular Inc acquisition to expand AI software capabilities

Outlook
Qualcomm sees Q4 revenue between $9.7 bln and $10.5 bln
Company expects Q4 non-GAAP diluted EPS of $2.05 to $2.25
Qualcomm says higher input costs are being reflected in product pricing, benefiting gross margins over time

Result Drivers
HANDSET WEAKNESS - Handset revenue fell 20% yr/yr, weighing on overall results
AUTOMOTIVE AND IOT GROWTH - Automotive revenue rose 61% and IoT revenue grew 9% yr/yr, offsetting some handset declines
HIGHER INPUT COSTS - Co said broad-based increases in input costs affected results, with actions underway to adjust pricing

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$9.95 bln
$9.67 bln (27 Analysts)
Q3 Adjusted EPS
Miss
$2.21
$2.23 (28 Analysts)
Q3 EPS
 
$1.87
 
Q3 Net Income
 
$2.002 bln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 15 "strong buy" or "buy", 25 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy."
Wall Street's median 12-month price target for Qualcomm Inc is $205.00, about 25.9% above its July 28 closing price of $162.88
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
July 29 - Qualcomm forecasts weak quarterly profit, expects Apple revenue drop to accelerate
July 29 - Qualcomm wins BMW chip supply deal for future vehicle platforms
July 28 - NXP Semiconductors forecasts upbeat quarter as AI push pays off

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)