Qualcomm's handset chip revenue fell 26% in its fiscal fourth quarter, adding pressure to its largest chip business as the company looks to data centers and other markets for growth.
Qualcomm announced results Nov. 4 for the quarter ended Sept. 27, 2026. GAAP revenue was $10.322 billion, down 8% from a year earlier. Non-GAAP revenue was $10.442 billion, down 7%, while non-GAAP diluted earnings per share fell 28% to $2.17 from $3.00.
Handset revenue in Qualcomm CDMA Technologies (QCT), its chip business, was $5.137 billion. Automotive revenue rose 89% to $1.990 billion, and internet of things revenue increased 4% to $1.888 billion.
For fiscal first-quarter 2027, Qualcomm forecast revenue of $10.4 billion to $11.2 billion and non-GAAP diluted earnings per share of $2.15 to $2.35. Its QCT revenue outlook includes data-center sales. The company expects non-handset revenue to grow more than 60% in fiscal 2027 and reiterated a $5 billion data-center revenue target. President and CEO Cristiano Amon said fiscal 2027 marks “the start of our non-handset revenue inflection.”
Qualcomm's fiscal 2026 filing identifies Apple's move to its own modem designs as a significant risk to QCT sales, operating results and cash flow. Apple already uses its modems in some phones, and Qualcomm expects the company to rely primarily on in-house modems going forward. The filing also links memory availability and higher prices to some major handset customers cutting planned production and trimming inventory.
The company said rising demand for advanced technology, AI and data-center applications has added to supplier cost and capacity pressures. Qualcomm expects its pricing actions to flow fully through to QCT gross margins during the second half of fiscal 2027.
Qualcomm also announced that SpaceX selected its Dragonwing Cellular Infrastructure platforms for Starlink Mobile's planned U.S. terrestrial 5G network. SpaceX plans to begin deployment in 2027, with tens of thousands of sites covered by a multiyear agreement. Qualcomm's fiscal first-quarter outlook is the next comparison point for its effort to broaden revenue beyond handsets.
