Qualcomm (NASDAQ: QCOM) shares have gained approximately 8.7% in the month since the company’s last earnings report, outpacing the broader S&P 500 over the same period.

The stock’s recent strength follows a mixed third-quarter fiscal 2026 report, where earnings narrowly missed expectations but revenues came in ahead of consensus estimates.

Qualcomm posted non-GAAP earnings of $2.21 per share for the third quarter, falling short of the Zacks Consensus Estimate of $2.22 by 0.5% and declining 20% compared to the same period a year earlier.

Revenue for the quarter reached $9.95 billion, down 4% year over year but beating the consensus mark of $9.71 billion by 2.4%, with automotive strength and IoT growth helping to support the top line.

QCT automotive revenues surged 61% to $1.59 billion, marking the 23rd consecutive quarter of double-digit year-over-year growth and representing the clearest bright spot in an otherwise uneven quarter.

Automotive revenue growth was driven by a $381 million increase in revenue per unit from favorable product mix and higher average selling prices, alongside $223 million from stronger shipments tied to new vehicle launches using Snapdragon digital cockpit, ADAS, and automated-driving products.

QCT revenues overall declined 5% to $8.50 billion, weighed down by a sharp 20% drop in handset revenues to $5.09 billion as major OEMs reduced chipset purchases and worked through inventory amid memory supply constraints and higher memory prices.

Management indicated that China OEM handset revenues reached a bottom in the third quarter and expects double-digit sequential growth in the fourth quarter as channel inventory drawdowns ease.

IoT revenues climbed 9% to $1.83 billion, led by favorable product mix and growth in industrial networking and robotics, with combined QCT automotive and IoT revenues advancing 28% on the year.

Qualcomm raised its fiscal 2026 exit-rate outlook for annualized automotive sales to approximately $7 billion, up from a prior estimate of $6 billion, signaling growing confidence in its non-handset diversification strategy.

QCT earnings before taxes declined 18% to $2.19 billion, with the EBT margin contracting four percentage points to 26% as higher product costs across wafers, assembly, testing, advanced packaging, and memory outweighed pricing gains.

GAAP research and development spending rose $381 million to $2.61 billion, supporting a phased data center roadmap spanning connectivity, custom silicon, AI accelerators, and server CPUs.

Qualcomm completed the $3.1 billion Modular acquisition during the quarter, adding an open, hardware-agnostic AI software platform, with two custom-silicon wins expected to begin generating revenues in the December quarter.

The company returned $2.3 billion to stockholders during the quarter, including $1.4 billion in share repurchases and $973 million in dividends, with $20.6 billion remaining under its buyback authorization at quarter-end.

For the fourth quarter of fiscal 2026, Qualcomm forecasts revenues of $9.7 billion to $10.5 billion and non-GAAP earnings of $2.05 to $2.25 per share, with QCT automotive revenues projected to rise approximately 60% year over year.

Qualcomm expects its modem share in the upcoming iPhone launch to be materially below its prior 20% estimate, with Android growth expected to partially offset the impact of lower Apple product sales on QCT handset revenues.

Analyst estimates have moved in a decidedly negative direction since the earnings release, with the consensus estimate shifting by -12.97% over the past month.

Qualcomm currently holds a Zacks Rank of 3 (Hold), with a VGM Score of F and a subpar Growth Score of D, suggesting analysts expect only an in-line return from the stock over the coming months.

Within the same Zacks Electronics-Semiconductors industry, Navitas Semiconductor Corporation (NVTS) has gained 13.6% over the past month and carries a Zacks Rank of 2 (Buy), offering a contrasting picture of near-term investor sentiment across the sector.