Qualcomm’s fiscal fourth-quarter revenue fell 8% to $10.3 billion as handset chip sales dropped 26%, while automotive revenue rose 89% to a record $1.99 billion. Earnings matched forecasts, but a weaker-than-expected profit outlook sent the shares about 7% lower after hours.
Global Economy Charts Research Desk | November 5, 2026
Key indicators
| Indicator | Reading | Context |
|---|---|---|
| Revenue (GAAP) | $10.32bn | -8% y/y; non-GAAP $10.44bn |
| Non-GAAP diluted EPS | $2.17 | -28% y/y; LSEG consensus $2.16 |
| Automotive revenue | $1.99bn | +89% y/y; a quarterly record |
| Handset revenue | $5.14bn | -26% y/y; Visible Alpha estimate $5.25bn |
| Q1 FY27 guidance | $10.4-11.2bn | Non-GAAP EPS $2.15-2.35; LSEG $10.48bn and $2.27 |
The quarter ended on 27 September 2026. GAAP diluted earnings were $1.17 per share, compared with a loss a year earlier that reflected a $6.1 billion tax charge. The non-GAAP figures exclude a $120 million revenue reduction linked to a legal settlement. The results show Qualcomm’s revenue mix shifting away from smartphones, but not quickly enough to offset the handset decline.
1. Handsets shrink as memory costs bite
Handset revenue fell 26% to $5.14 billion, below the $5.25 billion Visible Alpha estimate cited by Reuters. Reuters reported that lower Apple revenue weighed on the quarter and cited Counterpoint data showing a 20% fall in global smartphone shipments in the September quarter. Qualcomm said rising input costs, including memory, are being offset through pricing actions, with the full benefit to chip margins expected in the second half of fiscal 2027.
2. Cars and devices grow
Automotive revenue rose 89% to $1.99 billion, the fourth consecutive quarter of accelerating growth, and IoT revenue rose 4% to $1.89 billion. Licensing revenue at QTL fell 7% to $1.30 billion. Qualcomm also announced renewed long-term licence agreements with Apple, Huawei and Transsion. Chief executive Cristiano Amon said fiscal 2027 marks the start of the company’s non-handset revenue inflection and projected non-handset growth of more than 60%.
3. Guidance disappoints on profit
First-quarter fiscal 2027 revenue guidance of $10.4 billion to $11.2 billion has a midpoint above the $10.48 billion LSEG consensus, but the non-GAAP EPS range of $2.15 to $2.35 has a midpoint below the expected $2.27. Reuters reported that the outlook assumes no further sales of chips to Apple. CNBC said the shares fell about 7% in extended trading after closing higher in the regular session.
4. Data centre ambitions and full-year totals
Qualcomm reiterated its target of $5 billion of data-centre revenue in fiscal 2027 and announced a multi-generational AI data-centre collaboration with Amazon. For fiscal 2026 as a whole, revenue fell 3% to $43.1 billion and non-GAAP EPS fell 12% to $10.54. The company returned $11.7 billion to shareholders through $7.8 billion of buybacks and $3.9 billion of dividends.
Scenarios to watch
If data-centre and automotive revenue ramp as management expects, non-handset sales could offset more of the smartphone decline during fiscal 2027. If memory prices keep rising and handset makers raise prices further, smartphone demand could weaken again. The pace at which pricing actions restore chip margins will be a key indicator. These are scenarios for monitoring, not forecasts or investment advice.
Sources and methodology
Qualcomm, Q4 and fiscal 2026 results, 4 November 2026; Qualcomm, Q3 fiscal 2026 results (Form 8-K, Ex. 99.1), 29 July 2026; Qualcomm, Q2 fiscal 2026 results, 29 April 2026; Qualcomm, Q1 fiscal 2026 results, 4 February 2026; CNBC, 4 November 2026; Reuters, 4 November 2026. Reported figures are distinguished from forecasts and GEC calculations. Charts use the values and units shown; scales start at zero except where negative values or index thresholds require otherwise. Interpretive sections are GEC analysis, not company or central-bank forecasts.
Thumbnail: AI-generated editorial illustration. Figures are rounded for readability; some releases may be preliminary or subject to revision.
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