QCOM · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

QUALCOMM INC/DE · 2026-07-29 · Importance 19 · Surprise 6

Consolidated gross margin percentage decreased in both the third quarter and first nine months of fiscal 2026 compared with the corresponding 2025 periods. The decline was primarily attributable to lower QCT gross margin percentage. QCT margin was pressured by higher product costs, partially offset by higher average selling prices. Management also reported increased supplier product costs from wafer fabrication, assembly, test, advanced packaging, memory and other materials.

Key facts

• QCT EBT as a percentage of revenues decreased by 4 points in the three months and by 3 points in the nine months comparisons (third quarter and first nine months 2026 vs. 2025). source
• The decrease in QCT gross margin percentage was primarily driven by higher product cost, partially offset by higher average selling prices. source
• QCT EBT as a percentage of revenues decreased in the first nine months of fiscal 2026 primarily due to higher operating expenses, lower gross margin driven by higher product cost, and lower revenues. source