Qualcomm, Inc.

Strong fiscal Q3 results; guidance positioned at high end (but margin pressure expected short-term) - Revenues: $9.9B (high end of guidance); non-GAAP EPS: $2.21. - QCT revenues: $8.5B (high end); EBT margin 26% in line with guidance. - QTL (licensing): $1.3B; EBT margin 69% in line. - Returned $2.3B to stockholders in the quarter ($1.4B buybacks + $937M dividends).

Key near-term forecasts: Q4 topline modestly down-to-up; margin constrained by input costs + Apple share step-down - Q4 guidance: revenues $9.7B–$10.5B, non-GAAP EPS $2.05–$2.25. - QCT guidance: revenues $8.4B–$9.0B, EBT margin 23%–25%. - Handsets: QCT handset revenues guided at ~$5.2B, with sequential Android growth offset by lower Apple product revenues. - Apple constraint/supply step-down: management now expects faster decline in Apple product revenues starting Q4 because its share for the upcoming iPhone launch is materially lower than the prior ~20% estimate. - Q1 directionality comment (important): due to Apple weakness in the model, they expect revenues to grow from December to March, changing the classic seasonality pattern.

Gross margin “recovery plan” tied to pricing actions; timing = over the next few quarters - Headwind: industry experiencing broad-based input cost inflation (wafer fab, assembly/test, advanced packaging, memory/materials). - Management is taking broad pricing actions to pass through higher input costs; magnitude described as “double-digit” (consistent with peers). - When it shows up: pricing impacts will layer in gradually as contracts roll and product cycles update; they expect gross margins to realign to historical range over the next couple of quarters. - Data center gross margin dilution: even though QCT baseline gross margin is targeted around 48%–50%, data center revenue from custom engagements is expected to be 1.5%–2% drag on weighted-average QCT gross margin.