❯ Qualcomm revenue falls 8% as handset weakness offsets 89% automotive growth

Handsets weigh on the totalQualcomm reported fiscal 2026 fourth-quarter results on November 4 for the period ended September 27. Its official release showed $10.322 billion in revenue, down 8%, and $5.137 billion in handset-chip revenue, down 26%. Bloomberg reported that total sales slightly exceeded expectations of about $10.1 billion, while handsets missed estimates; shares fell more than 5% after hours following the report.

Automotive fills part of the gapAutomotive revenue rose 89% to $1.990 billion, and IoT revenue grew 4% to $1.888 billion. Qualcomm is extending its processors, connectivity and low-power computing into vehicles, industrial devices and data centers. Handsets remain its largest chip revenue stream, and growth elsewhere has yet to offset the decline fully.

Data centers enter the rampCEO Cristiano Amon forecast more than 60% growth in non-handset revenue for fiscal 2027 and reiterated a $5 billion data-center revenue target for that year. Qualcomm also announced a multigenerational AI data-center product collaboration with Amazon, bringing new markets closer to customer deliveries and revenue.

Pricing takes timeQualcomm guided next-quarter revenue to $10.4 billion–$11.2 billion and adjusted earnings per share to $2.15–$2.35. It cited higher wafer, packaging, testing and memory costs, and is adjusting prices to reflect them. The full benefit to chip-business gross margins is expected in fiscal 2027’s second half.

▮ SIGNALQualcomm’s diversification is reaching revenue scale; automotive and data-center ramps will determine how quickly dependence on the handset cycle declines.