Companies
Qualcomm Reports Strong Q4 Earnings Amid Challenges in Handset Business
Qualcomm has announced its fiscal fourth-quarter results, surpassing Wall Street expectations for both earnings per share (EPS) and revenue. Analysts had anticipated a non-GAAP EPS of approximately $2.16, reflecting a year-over-year decline from $3.00 in the same quarter last year. Revenue forecasts were set around $10.15 billion, compared to $11.27 billion a year prior, marking a 10% decrease.
The report, originally scheduled for November 4, 2026, highlighted a significant concern in Qualcomm's handset business. Projected handset revenue for the quarter was about $5.2 billion, indicating a substantial decline for this segment, which has historically been a key revenue driver for the company. Factors contributing to this downturn include the loss of modem orders from Apple, subdued demand for Android devices, and rising memory costs that have pressured phone manufacturers.
In the previous fiscal Q3 2026, Qualcomm reported revenue of $9.95 billion, exceeding the expected $9.67 billion, although this still represented a 4% decline year-over-year. The non-GAAP EPS for Q3 was $2.21, slightly below the consensus estimate of $2.23. A bright spot in that quarter was the automotive sector, which saw record revenue of $1.59 billion, a 61% increase compared to the previous year.
Qualcomm's strategy involves diversifying its revenue streams beyond smartphones, focusing on data centers, automotive, and the Internet of Things (IoT). Management anticipates non-handset revenue growth exceeding 60% in fiscal 2027.
FAQ
What were Qualcomm's earnings per share (EPS) for Q4 2026?
Qualcomm reported a non-GAAP EPS of approximately $2.16 for Q4 2026.
How did Qualcomm's Q4 2026 revenue compare to the previous year?
Qualcomm's revenue for Q4 2026 was around $10.15 billion, which represents a 10% decrease from $11.27 billion in the same quarter last year.
What challenges is Qualcomm facing in its handset business?
Qualcomm's handset business is facing challenges due to the loss of modem orders from Apple, subdued demand for Android devices, and rising memory costs affecting phone manufacturers.
Which sector showed growth for Qualcomm in Q3 2026?
The automotive sector showed significant growth for Qualcomm in Q3 2026, reporting record revenue of $1.59 billion, a 61% increase compared to the previous year.
What is Qualcomm's strategy for future revenue growth?
Qualcomm's strategy involves diversifying its revenue streams beyond smartphones, focusing on sectors such as data centers, automotive, and the Internet of Things (IoT), with management anticipating non-handset revenue growth exceeding 60% in fiscal 2027.