Qualcomm reported $10.32 billion in revenue for its fiscal fourth quarter Wednesday, down 8% from a year earlier, as weakness in smartphone chips offset rapid growth in automotive and other businesses.
The San Diego chipmaker said handset revenue fell 26% to $5.14 billion. Reuters reported that global smartphone shipments declined about 20% and that Qualcomm shares dropped more than 6% in extended trading as investors focused on the pressure in the company’s largest business.
Qualcomm’s automotive revenue reached a quarterly record of $2 billion, up 89% from a year earlier. Combined automotive and internet-of-things revenue grew 36%, according to the company’s earnings release.
For the full fiscal year, Qualcomm reported $43.1 billion in generally accepted accounting principles revenue and diluted earnings of $12.70 a share. Fourth-quarter GAAP net income was $1.25 billion, or $1.17 a diluted share.
The company forecast fiscal first-quarter revenue of $10.4 billion to $11.2 billion. It also said non-handset revenue should grow more than 60% in fiscal 2027 and reiterated a $5 billion data-center revenue target for the year.
Qualcomm is trying to reduce its dependence on smartphones as Apple shifts more devices to in-house modem technology. The company highlighted new or renewed licensing arrangements with Apple, Huawei and Transsion, as well as an Amazon collaboration for artificial-intelligence data centers.
Reuters reported that Qualcomm expects about $650 million in data-center sales in the current quarter and is targeting $15 billion in annual data-center revenue by fiscal 2029. Those forward-looking targets depend on execution, customer demand and competitive conditions.
The results cover the quarter ended Sept. 27 and were released after U.S. markets closed Wednesday. Qualcomm scheduled an earnings call for 1:45 p.m. Pacific to discuss the report.
Sources: - Qualcomm fiscal fourth-quarter earnings release: https://investor.qualcomm.com/files/content_files/FY2026-4th-Quarter-Earnings-Release.pdf - Reuters: https://www.reuters.com/business/media-telecom/qualcomm-forecasts-upbeat-sales-strength-non-smartphone-segments-2026-11-04/