Handset Weakness Drags Qualcomm Q3, but $3.1B Modular AI Deal Closes
QCOM sits 23% above its 52-week low of $121.99.
Summary
Qualcomm's Q3 revenue fell 4% YoY to $9.95B as handset chip sales slumped, while automotive revenue surged 61%. The company completed its $3.1B Modular acquisition to strengthen AI capabilities.
Key Events · Earnings and Guidance · QCOM
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Q3 Revenue and Earnings Decline
Total revenue of $9.95B, down 4% YoY, with net income of $2.0B, down 25% YoY. Diluted EPS of $1.87 missed expectations.
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Handset Chip Revenue Plunges
QCT handset revenue fell $1.24B (20%) YoY to $5.09B, driven by memory supply constraints and OEM inventory adjustments.
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Automotive and IoT Growth Offsets Weakness
Automotive revenue grew 61% YoY to $1.59B; IoT revenue increased 9% YoY to $1.83B, reflecting diversification progress.
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Modular Acquisition Closed
Completed $3.1B all-stock acquisition of Modular Inc. on July 28, 2026, adding AI-native software platform for data center and edge.
Analysis · QCOM · Manufacturing
A 20% plunge in handset chip revenue—driven by memory supply constraints and customer inventory corrections—dominated Qualcomm's Q3 fiscal 2026 results, overshadowing a 61% surge in automotive. The quarter also included $68M in restructuring charges. After the quarter closed, the company completed its $3.1B acquisition of Modular, aiming to strengthen its AI software stack for data center and edge applications. A previously released $5.7B tax valuation allowance reversal masks the underlying operating income pressure. The report highlights intensifying headwinds from Apple's modem transition and U.S.-China trade risks.
At the time of this filing, QCOM was trading at $150.00 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $164.1B. The 52-week trading range was $121.99 to $259.92. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.