Qualcomm 3Q Profit Declines, Dented by Higher Costs -- Update

By Kelly Cloonan

Qualcomm's third-quarter profit fell, as lower sales and higher input 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.

The stock slid 7.6%, to $143.84, in after-hours trading. At market close, shares were down about 9% year to date.

Chief Executive Cristiano Amon said the entire industry is contending with a run up in memory prices, higher manufacturing and input costs, as well as supply chain shortages due to data center demand.

Qualcomm plans to raise prices to offset the increased input costs, a move it expects to boost its gross margins over time as the pricing changes gradually take effect.

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.

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 18:12 ET (22:12 GMT)