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Qualcomm Incorporated reported third-quarter fiscal 2026 earnings and projected a faster decline in Apple modem revenue.

Qualcomm Incorporated reported third-quarter fiscal 2026 non-GAAP earnings of $2.21 per share, missing the Zacks Consensus Estimate by 0.5%. While revenues reached $9.95 billion, higher input costs and handset weakness pressured profitability. The company noted that revenue from its Apple modem business will decline faster than previously expected as Apple accelerates its adoption of in-house modem technology. To offset these losses, Qualcomm Incorporated expects growth in non-handset businesses, such as artificial intelligence data centers and automotive chips. The company raised its fiscal 2026 exit-rate outlook for annualized automotive sales to approximately $7 billion. Additionally, Qualcomm Incorporated plans to increase prices starting September 1 to address higher supply chain costs. Despite the handset decline, the company reported record automotive sales and IoT growth. Management expects double-digit sequential growth in the fourth quarter as channel inventory drawdowns ease.

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