Qualcomm reports declining smartphone chip revenue amid automotive growth

Qualcomm reported mixed financial results for its fiscal fourth quarter of 2026, with total revenue falling 8% year-over-year to $10.32 billion. While adjusted earnings per share of $2.17 slightly exceeded market expectations, the company issued a weaker-than-expected earnings forecast for the upcoming quarter, causing shares to drop in after-hours trading.

The company experienced a significant 26% decline in smartphone chip revenue, which fell to $5.14 billion. This downturn is attributed to rising memory costs and adjusted production plans by handset manufacturers.

In contrast, Qualcomm saw substantial growth in other sectors. Automotive chip revenue surged by 89% to $1.99 billion, and Internet of Things (IoT) revenue increased by 4%. CEO Cristiano Amon emphasized a strategic shift toward non-handset businesses, including data centers, noting a goal to reach $5 billion in data center revenue by fiscal year 2027. The company also announced a multi-year partnership with Amazon to develop AI-focused data center products.