QCOM · Q3 FY2026
QUALCOMM INC/DE Q3 FY2026 earnings analysis
By SageNoodle ResearchBearish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $9.95B | $10.37B (yr ago) | Miss |
| EPS | $1.87 GAAP | $2.43 GAAP (yr ago) | Miss |
| Free Cash Flow | Not meaningful under supplied methodology | Not meaningful (yr ago) | Miss |
| Gross Margin | Not disclosed; not meaningful under supplied methodology | Not disclosed (yr ago) | Miss |
| Operating Margin | 16.3% supplied pre-tax-margin series | 26.6% (yr ago) | Miss |
What changed
Revenue fell 4.0% year over year to $9.95 billion as a 20.0% decline in QCT handset revenue outweighed 61.0% automotive and 9.0% IoT growth. GAAP EPS declined 23.0% to $1.87, while the supplied quarterly pre-tax-margin series contracted to 16.3% from 26.6%; the release separately reported EBT of $2.46 billion, down 17.0%.
Impact on the investment thesis
With no prior SageNoodle valuation, we establish fair value at $175 per share rather than treating the quarter as grounds for a rerating. Automotive and IoT diversification improved, but handset weakness, input-cost pressure and lower profitability offset that progress.