QUALCOMM Incorporated · Q3 FY2026

The quarter in short

Revenue $9.95B, down 4.0% year over year and 6.2% on the quarter. Adjusted EPS $1.53. GAAP EPS $1.87. Free cash flow $495M, down 80.8% year over year and 74.2% on the quarter. Adjusted EPS missed consensus by 1%. Rule of 40 score +1.

What we learned

1. Apple 's iPhone launch share is falling well below the 20% Qualcomm previously modeled. CFO Akash Palkhiwala forecast roughly a 50% revenue decline from the September to the December quarter as the exit accelerates faster than the last guide assumed.
2. Weak Android handset revenue alone cost the quarter more than $1.50 of EPS. CFO Akash Palkhiwala called the 20% Android revenue decline a potential tailwind once markets normalize, on top of the QSI gain this piece already isolates.
3. China handset revenue bottomed this quarter, and management expects a double-digit sequential rise in September. CFO Akash Palkhiwala said channel inventory has thinned to the point OEMs can no longer draw it down instead of ordering, the confidence behind the call.
4. The $40 billion fiscal-2029 non-handset target is $24 billion of automotive and IoT plus $15 billion of data center. CEO Cristiano Amon said it replaces a prior target of $22 billion — the target nearly doubled, not just the headline number this piece already quotes.

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