QCOM · 10-Q · 2026Q2 · Full report

Operating Expense Trends

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

Third-quarter R&D expense increased $381 million, including $244 million of higher wireless and integrated-circuit development costs and $101 million of higher share-based compensation. First-nine-month R&D expense increased $851 million, driven by $541 million of development and employee-related costs and $269 million of share-based compensation. First-nine-month SG&A expense increased $538 million, including $184 million of higher share-based compensation, $91 million of acquisition-related expenses and $64 million of higher sales and marketing costs. The higher spending reflects investments in wireless, integrated-circuit, growth and diversification initiatives, as well as replacement of annual cash incentives with a two-year equity award for broader non-executive leadership.

Key facts

• Research and development expense for the three months ended June 28, 2026 was $2,607 million compared to $2,226 million in the year ago quarter. source
• We expect to continue investing in key growth and diversification initiatives and replaced our annual cash incentive awards for fiscal 2026 and 2027 with a two-year equity award for our broader non-executive leadership team. source
• The third quarter fiscal 2026 increase in research and development expense included a $244 million increase driven by higher costs related to development of wireless and integrated circuit technologies and a $101 million increase in share-based compensation expense. source
• Selling, general and administrative expenses increased in the third quarter of fiscal 2026 due to a $62 million increase in share-based compensation expense, a $27 million increase in sales and marketing expenses, and a $24 million increase in expenses driven by the revaluation of our deferred compensation obligation. source
• Other expenses in the third quarter and first nine months of fiscal 2026 consisted of restructuring and restructuring-related charges, substantially all of which related to severance costs. source

Impact estimates