Qualcomm 3Q Profit Declines, Dented by Higher Costs

By Kelly Cloonan

Qualcomm's third-quarter profit fell, as lower sales and higher memory costs weighed on its bottom line.

The semiconductor company also gave a soft outlook for the current quarter, and said it would raise the prices of its products to offset the increase in input costs.

Third-quarter profit came in at $2 billion, or $1.87 a share, compared with $2.67 billion, or $2.43 a share, a year earlier.

Adjusted earnings per share were $2.21, compared with estimates of $2.23 a share according to analysts polled by FactSet.

Revenue declined 4% to $9.95 billion, compared with analyst estimates of $9.69 billion.

Sales slid 20% in the company's handset segment, offsetting increases in its automotive and Internet of Things divisions.

Qualcomm said it is contending with a challenging memory and supply environment, with a broad-based increase in input costs across wafer fabrication, assembly, test, advanced packaging, memory and other materials. The company said it is taking actions to reflect the higher costs in its product pricing, a move it expects to boost its gross margins over time.

For the current fourth quarter, the company expects adjusted earnings per share of $2.05 to $2.25 and revenue of $9.7 billion to $10.5 billion. Analysts forecast adjusted earnings of $2.38 per share on revenue of $10.07 billion.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

July 29, 2026 16:42 ET (20:42 GMT)