Qualcomm’s profit falls 25% in the 2nd quarter

Qualcomm recorded net profit of US$2.0 billion in the 3rd fiscal quarter of 2026. The result was released on Wednesday (29.Jul.2026). It represents a drop of 25% compared to US$2.7 billion in the same period in 2025.

Revenue totaled US$9.95 billion, down 4% year-on-year. Diluted earnings per share fell 23%, from $2.43 to $1.87. In the adjusted criteria, which excludes items such as stock compensation and expenses related to acquisitions, net profit was US$2.36 billion. Read the full text in English (PDF – 217 kB).

The QCT division, which brings together the sale of chips and other products, had revenues of US$8.5 billion, 5% less than 1 year before. The fall was driven by the cell phone segment, while the automotive and internet of things businesses maintained growth.

Here are the main results of the division:

• cell phones – US$5.09 billion, down 20%;
• automotive – US$1.59 billion, up 61%;
• internet of things – US$ 1.83 billion, growth of 9%.

Combined, automotive and internet of things revenues grew 28% compared to the same quarter in 2025. The QTL licensing unit had revenue of US$1.28 billion, down 3%.

Qualcomm’s executive president, Cristiano Amon, said that revenue was at the upper limit of the company’s projection, despite difficulties in the market and supply. The company intends to increase annual revenue outside the cell phone sector to US$40 billion by fiscal year 2029.

The manufacturer reported that the semiconductor sector is facing rising costs for manufacturing, assembly, testing, advanced packaging and memory. According to the company, product prices are being adjusted to absorb part of these expenses.

For the fourth quarter of fiscal 2026, Qualcomm estimates revenue of $9.7 billion to $10.5 billion. Diluted earnings per share are expected to be between $1.22 and $1.42. In the reported quarter, the company also distributed US$2.3 billion to shareholders, including dividends and share repurchases.

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