Qualcomm Q4 Revenue Falls 8% to $10.32 Billion as Handsets Slide; Auto Hits First $2 Billion Quarter
Qualcomm closed fiscal 2026 with a weaker handset quarter and a louder pitch that non-handset chips—especially automotive and a nascent data-center push—will drive the next growth phase.
The San Diego chipmaker reported GAAP revenue of $10.32 billion for the fiscal fourth quarter ended Sept. 27, 2026, down 8% from $11.27 billion a year earlier, according to its earnings release filed with an 8-K Wednesday. Non-GAAP revenue was $10.44 billion, down 7%. GAAP diluted earnings per share were $1.17, versus a loss of $2.89 a year ago. Non-GAAP EPS was $2.17, down from $3.00.
GAAP net income was $1.25 billion, compared with a net loss of $3.12 billion in the year-earlier quarter. Fiscal 2026 GAAP results included a $5.7 billion income tax benefit, or $5.32 per share, from releasing a valuation allowance set up in the fourth quarter of fiscal 2025, the company said—so full-year GAAP EPS of $12.70 versus $5.01 is not a clean operating comparison. Full-year GAAP revenue was $43.12 billion, down 3% from $44.28 billion. Non-GAAP full-year EPS was $10.54, down 12% from $12.03.
Auto and IoT offset phone weakness
QCT, the chip segment, took in $9.02 billion in the quarter, down 8%. Handset revenue inside QCT fell 26% to $5.14 billion from $6.96 billion. Automotive QCT revenue jumped 89% to $1.99 billion, the first quarter above $2 billion on a rounded basis in the company’s framing, and IoT rose 4% to $1.89 billion. Combined automotive and IoT QCT revenue grew 36% year over year, CEO Cristiano Amon said.
QTL licensing revenue was $1.30 billion, down 7%. Qualcomm said it renewed long-term QTL license agreements with Apple, Huawei and Transsion and announced a multi-generational product collaboration with Amazon for AI data centers.
Amon said fiscal 2027 marks the start of a non-handset revenue inflection, including the data-center ramp. Non-handset revenues are projected to grow by more than 60% year over year, and the company reiterated a fiscal 2027 data-center revenue target of $5 billion.
Capital returns and outlook
In the fourth quarter Qualcomm repurchased $1.01 billion of stock and paid $987 million in dividends. For fiscal 2026, buybacks and dividends totaled $11.67 billion.
For the fiscal first quarter of 2027, Qualcomm guided revenue to $10.4 billion to $11.2 billion, with QCT at $9.0 billion to $9.6 billion and QTL at $1.3 billion to $1.5 billion. GAAP diluted EPS guidance is $1.03 to $1.23; non-GAAP diluted EPS is $2.15 to $2.35. The company said the semiconductor industry faces higher input costs and that the full benefit of product-price actions should show up in QCT gross margins in the second half of fiscal 2027.
By the numbers
- Q4 GAAP revenue: $10.32 billion, down 8%
- Q4 GAAP EPS: $1.17; non-GAAP EPS: $2.17
- QCT automotive revenue: $1.99 billion, up 89%
- QCT handset revenue: $5.14 billion, down 26%
- Fiscal 2026 GAAP revenue: $43.12 billion, down 3%
- Q1 FY27 revenue guide: $10.4 billion to $11.2 billion
- FY27 data-center revenue target: $5 billion
Sources
- Qualcomm Form 8-K with fiscal fourth-quarter and fiscal 2026 earnings release, filed Nov. 4, 2026 (accession 0000804328-26-000127)
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