Q3 2026 Qualcomm Inc Earnings Call Transcript
Key Points
- Record automotive revenues with 61% year-over-year growth, driven by accelerating demand and increased compute content per vehicle.
- Raised automotive annualized revenue run-rate outlook to approximately $7 billion exiting fiscal 2026, up from $6 billion.
- Data center revenue from two custom silicon engagements is set to begin in the December quarter, with wafers already in production.
- Completed tape-out of HBC Gen 1, a key milestone for the disruptive high-bandwidth compute solution targeting mid-2027 launch.
- Industrial design win pipeline exceeds $7 billion, with over $3.5 billion secured this fiscal year, reflecting strong customer demand.
- QCT gross margins are under short-term pressure due to unprecedented memory prices, higher manufacturing costs, and supply chain shortages.
- Apple product revenues are expected to decline materially, with share in upcoming iPhone launches dropping below the prior estimate of 20%.
- Handset revenues are impacted by industry-wide memory dynamics, with QCT Android revenue down 20% year-over-year and EPS impact exceeding $1.50.
- Supply constraints are limiting production capacity, with all leading nodes at 100% utilization, leading to price increases across the supply chain.
- Data center revenue from custom chip engagements is expected to be dilutive to QCT gross margins by 1.5% to 2%.
Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm third-quarter fiscal 2026 earnings conference call.
(Operator Instructions)
As a reminder, this conference is being recorded, July 29, 2026. The playback number for today's call is (877) 660-6853. International callers, please dial (201) 612-7415. The playback reservation number is 13761080. I would now like to turn the call over to Brett Simpson, Senior Vice President of Investor Relations.
Mr. Simpson, please go ahead.
Thank you, and good afternoon, everyone. Today's call will include prepared remarks by Cristiano Amon and Akash Palkhiwala. In addition, Alex Rogers will join the question-and-answer session. You can access our earnings release and a slide presentation that accompany this call on our Investor Relations website. In addition, this call is being webcast on qualcomm.com, and a replay will be available on our website later today.
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