QCOM · Earnings call · 2026Q3T · Full report
Pricing and Input Costs
QUALCOMM INC/DE · 2026-11-04 · Importance 44 · Surprise 24 · In source text
Management said higher semiconductor input costs across the industry led Qualcomm to implement price increases across its products. The increases begin benefiting the business in fiscal Q2 2027, with their full benefit expected in the second half of fiscal 2027. Management said the price actions should return baseline gross margin to the low end of its historical 40% to 50% range, while data center mix is expected to dilute gross margins.
Key facts
- QUALCOMM INC/DE said it was implementing semiconductor price increases and would begin realizing the benefit in fiscal Q2 2027, with the full benefit in the second half of fiscal 2027.
- QUALCOMM INC/DE is implementing price increases across its products to reflect higher semiconductor input costs.
- QUALCOMM INC/DE said its price increases apply to newer platforms and new phones, which are less subject to pre-buying, and become more effective in reported results in the second half.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | committed | — | QUALCOMM INC/DE said it was implementing semiconductor price increases and would begin realizing the benefit in fiscal Q2 2027, with the… |
| revenue | positive | probable | — | QUALCOMM INC/DE is implementing price increases across its products to reflect higher semiconductor input costs. |
| operating_income | negative | probable | — | QUALCOMM INC/DE is implementing price increases across its products to reflect higher semiconductor input costs. |