Qualcomm's Q3 Profit Falls 25% as Costs Rise

Qualcomm reported its financial results for the third quarter of fiscal year 2026. The company's net profit fell 25% year-over-year to $1.8 billion, driven by higher operating expenses and increased research and development costs. Total revenue rose 3% quarter-over-quarter to $9.9 billion. However, rising cost of sales and operating expenses weighed on profitability. Operating margin declined to 22% from 28% in the same period last year. Qualcomm's chip division maintained revenue despite a slowdown in the smartphone market. However, licensing revenue fell short of expectations amid the renewal of agreements with key customers. The company stated it will focus on cost control in the final quarter of the year while continuing to invest in next-generation chipsets. Analysts expect cost pressures to persist in the near term but believe 5G and AI-focused products will support long-term growth. The company's shares fell 2% in pre-market trading following the profit decline. This is not investment advice.