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# Qualcomm Handset Chip Revenue Falls 26% In Fourth Quarter As Automotive Sales Jump 89%
- URL: https://www.bullished.co/qualcomm-handset-chip-revenue-falls-26-in-fourth-quarter-as-automotive-sales-jump-89-5ff9c371/
- Published: 2026-11-04T23:27:59.000Z
- Updated: 2026-11-04T23:27:59.000Z
- Description: Fiscal 2026 revenue slipped 3% to $43.12 billion, and the CEO reiterated a $5 billion data center target for fiscal 2027.
- Author: Matteo Parrino
- Tags: Earnings, QCOM, Industry: Technology

[Qualcomm](https://www.bullished.co/tag/qcom/), which designs the chips and software behind smartphones, cars and data center gear, said its handset chip revenue [fell 26% to $5.137 billion](https://www.sec.gov/Archives/edgar/data/0000804328/000080432826000127/qcom092726erex991.htm?ref=bullished.co) in the fiscal fourth quarter, while automotive revenue rose 89% to $1.99 billion. CEO Cristiano Amon said fiscal 2027 starts a "non-handset revenue inflection" that includes the ramp of its data center business.

## Cars grow as phones shrink

Total revenue for the quarter ended September 27 fell 8% to $10.322 billion on a standard-accounting basis, from $11.270 billion a year earlier. Adjusted earnings were [$2.17 per share](https://qz.com/qualcomm-earnings-sales-forecast-new-markets-110426?ref=bullished.co), down 28% from $3.00\. Reported earnings were $1.17 per share, against a loss of $2.89 a year earlier.

The company called its automotive result a record, its first $2 billion quarter. Internet-of-things chip revenue rose 4% to $1.888 billion. Over the full fiscal year, handset revenue fell 13% to $24.072 billion and automotive rose 52% to $6.004 billion.

Qualcomm's licensing unit, QTL, brought in $1.304 billion in the quarter, down 7%. The company said it renewed long-term license agreements with Apple, Huawei and Transsion, and announced a multi-generational product collaboration with Amazon for AI data centers.

## A year helped by a tax benefit

Fiscal 2026 revenue was $43.12 billion, down 3%. Adjusted earnings per share [fell 12% to $10.54](https://qz.com/qualcomm-earnings-sales-forecast-new-markets-110426?ref=bullished.co). Reported earnings per share rose to $12.70 from $5.01, helped by a $5.7 billion income tax benefit, or $5.32 per share, from releasing a valuation allowance.

Qualcomm spent $7.817 billion on stock repurchases in the year, plus $3.854 billion in dividends.

## Costs and a $5 billion target

Amon said non-handset revenue is projected to grow by more than 60% year over year in fiscal 2027, and he reiterated the $5 billion data center revenue target for that year.

For the first quarter of fiscal 2027, Qualcomm guided to revenue of $10.4 billion to $11.2 billion and adjusted earnings of $2.15 to $2.35 per share. The company said chip input costs are rising across fabrication, packaging, memory and other materials. It is raising prices in response and expects the full benefit in chip-unit gross margins in the second half of fiscal 2027.

Qualcomm's first-quarter outlook includes data center revenue in its chip-unit guidance of $9.0 billion to $9.6 billion.

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### Sources

- [8-K Filing — QUALCOMM INC/DE (QCOM)](https://www.sec.gov/Archives/edgar/data/0000804328/000080432826000127/qcom-20261104.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit qcom092726erex991.htm — QUALCOMM INC/DE 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000804328/000080432826000127/qcom092726erex991.htm?ref=bullished.co) — SEC EDGAR
- [Qualcomm is betting big on data centers as smartphone sales sink | The Verge](https://www.theverge.com/ai-artificial-intelligence/1026867/qualcomm-earnings-data-centers?ref=bullished.co) — The Verge
- [Qualcomm Q4 earnings: new markets lift sales forecast above estimates](https://qz.com/qualcomm-earnings-sales-forecast-new-markets-110426?ref=bullished.co) — qz.com

### More on Qualcomm

- [Qualcomm Says Supply, Not Demand, Will Cap Data Center Sales Beyond $5 Billion Target](https://www.bullished.co/qualcomm-says-supply-not-demand-will-cap-data-center-sales-beyond-5-billion-target-1edb45f8/)
- [Qualcomm's Inventory Jumps To $8.64 Billion As Handset Sales Fall And Cash Drops](https://www.bullished.co/qualcomms-inventory-jumps-to-8-64-billion-as-handset-sales-fall-and-cash-drops-d75c9601/)

[All Qualcomm (QCOM) coverage →](https://www.bullished.co/tag/qcom/)