Qualcomm released its fiscal third-quarter 2026 earnings report and provided an outlook for the fourth-quarter performance. The earnings report showed that Qualcomm's revenue in the third fiscal quarter was $9.95 billion, down 4% year-on-year, slightly higher than market expectations; adjusted earnings per share were $2.21, in line with expectations; net profit was $2 billion. By business segment, mobile phone-related revenue in the chip business fell 20% year-on-year, IoT business revenue reached $1.83 billion, and automotive electronics business revenue hit a record $1.59 billion, up 61% year-on-year. Due to rising supply chain costs, Qualcomm plans to raise prices starting September 1, which may put slight pressure on gross margins in the short term. For the fourth quarter, Qualcomm expects adjusted earnings per share and revenue to fall below analysts' expectations. Meanwhile, affected by supply constraints, Qualcomm's component share in the next-generation iPhone will be significantly lower than the previous estimate of 20%, and revenue from Apple will decline at an accelerated pace, though Apple-related patent licensing revenue will continue in the short term. To address the loss of Apple's business, Qualcomm is advancing a business diversification strategy, expecting data center business revenue to reach $5 billion by fiscal 2027, with most chip sales coming from areas other than smartphones. In the Android smartphone market, revenue from Chinese manufacturers hit bottom in the third fiscal quarter. Although Android smartphone sales have started to rebound, changes in the product mix continue to put pressure on Qualcomm's profit margins. After the earnings release, Qualcomm's after-hours stock price fell more than 4%.