On July 29 (local time), Qualcomm unveiled its financial results for the third fiscal quarter of fiscal year 2026, reporting revenue of $9.95 billion—a 4% year-over-year decrease, though surpassing Wall Street’s projections. Net profit reached $2 billion, marking a 25% year-over-year decline. The revenue outlook for the fourth fiscal quarter is projected between $9.7 billion and $10.5 billion, broadly aligning with analysts’ expectations.
Qualcomm attributed the performance downturn primarily to a sharp surge in memory chip prices, which dampened smartphone sales and weighed on the earnings of smartphone chip suppliers. In response, the company announced a sweeping price increase for its chips, effective September 1.
However, Qualcomm’s automotive and Internet of Things (IoT) sectors have emerged as key growth drivers. Automotive business revenue hit $1.59 billion in the third fiscal quarter, while IoT revenue climbed 9% year-over-year to $1.83 billion.