Qualcomm Inc. shares slid about 5.0% in pre-open trading to $147.86 after the wireless chipmaker published a fiscal Q3 2026 report that matched parts of the market's expectations but fell short on forward guidance.
On the top line, third-quarter revenue declined 4% to $9.95 billion, a figure that nonetheless topped analysts' estimates of $9.67 billion. Adjusted earnings per share for the quarter were $2.21, just under the consensus of $2.23. The company signaled a softer near-term outlook, forecasting adjusted earnings per share for Q4 between $2.05 and $2.25, shy of the $2.36 analysts were expecting.
Management pointed to an ongoing shortage of computer components - most notably memory - as a principal reason for the weaker guidance. That supply shortfall has pressured handset demand and reduced gross margins in Qualcomm's QCT business, pushing them below the firm's typical historical range of 48-50%.
Investors also reacted to comments from CEO Cristiano Amon confirming that Apple-related revenue will decline more rapidly than previously projected. Amon said supply limitations will shrink the proportion of Qualcomm chips in the next-generation iPhone to below the company's prior target of 20%. Later, attempting to recast the trajectory of the business, Amon said "we kind of replaced Apple with the data center," though the company acknowledged those data center revenues have yet to ramp to scale.
Analysts and market participants seized on several areas of concern. Seaport analyst Jay Goldberg criticized the results, asserting that "these results show that as Qualcomm is diversifying, it has lost focus on its core mobile market." The combination of a guidance miss, accelerating decline in Apple modem revenue, and margin pressure stemming from the memory supply crunch outweighed the upbeat items in the report.
There were, however, clear positives within the quarter. Automotive revenue reached a record $1.6 billion, up 61% year-over-year, prompting Qualcomm to raise its annualized automotive run-rate target. Additionally, the company noted that two hyperscale custom silicon wins are slated to start generating revenue in the December quarter. Qualcomm also announced the completion of its acquisition of AI software firm Modular Inc. and disclosed a new lead-chip partnership with BMW Group.
Despite those upside items, the market response was largely company-specific; the S&P 500 and Nasdaq were both modestly positive during the same pre-market period, meaning Qualcomm's weakness was not driven by a broad market sell-off. The stock is trading well below its 52-week high of $259.92 as investors price in near-term headwinds.
What happened
- Pre-market decline of 5.0% to $147.86 following the fiscal Q3 2026 report and soft Q4 guidance.
- Q3 revenue fell 4% to $9.95 billion, beating the $9.67 billion estimate.
- Q3 adjusted EPS of $2.21 missed the $2.23 estimate; Q4 EPS guidance of $2.05 to $2.25 missed the $2.36 consensus.
Context
Qualcomm faces a mix of offsetting forces: record automotive growth and impending data center revenue streams on one side, and a faster-than-expected decline in Apple-related business plus margin compression from a memory supply crunch on the other. Management emphasized the shift in revenue mix but acknowledged that new revenue sources are not yet fully realized at scale.