Qualcomm

Qualcomm reported Q3 FY2026. EPS came in at $2.21 against a $2.23 consensus, missed by 0.9%. Revenue was $9.9B versus $9.7B expected, beat by 2.6%. Gross margin was 53.1%, down 70 bps from last quarter.

Qualcomm reported a slight beat in both revenue and EPS for Q2 FY2026, but the guidance for the next quarter suggests a more cautious outlook. The company's automotive and IoT segments continue to drive growth, but the handset market remains a headwind.

Qualcomm beat modestly, but the actionable read is that the market should separate demand from supply: Q1 showed premium handset demand and diversification working, while Q2 guidance is being capped by memory availability rather than end-demand collapse. The variant perception is that a sequential handset air pocket is being priced as cyclical weakness when management framed it as “100% sized” by memory, leaving automotive, IoT, licensing mix, and buybacks to carry more signal than the headline guide.

Qualcomm cleared the quarter by more than seasonal handset strength: the surprise was concentrated in QCT, with premium Android, automotive above $1 billion, and IoT growth all exceeding expectations. The market likely priced a handset-led beat, but the variant view is that the print forces higher confidence in the non-handset bridge toward the $22 billion fiscal '29 automotive and IoT target, even as gross margin drift keeps the multiple debate honest.

Qualcomm did not deliver a headline shock, with revenue only +0.3% above Street and EPS +2.2%, but the mix says more than the beat. The market was priced for a handset-led quarter and got evidence that automotive and IoT are large enough to matter, while QTL margins and QCT profitability keep the transition funded.