Qualcomm reports fiscal 2026 fourth-quarter revenue decline

Qualcomm reported fourth-quarter fiscal 2026 adjusted revenue of $10.44 billion, representing a 7.3% year-over-year decrease. While the figure exceeded Wall Street consensus, the company faced significant headwinds in its handset business, which saw revenue fall 26% to $5.14 billion.

Despite the decline in smartphone-related income, Qualcomm experienced substantial growth in other sectors. Automotive revenue rose 89% year-over-year to $1.99 billion, and Internet of Things (IoT) revenue increased by 4% to $1.89 billion. CEO Cristiano Amon stated that fiscal 2027 marks the beginning of a non-handset revenue inflection point, with the company reiterating a fiscal 2027 data center revenue target of $5 billion.

Overall, adjusted net income and diluted earnings per share both fell 28% compared to the previous year. The company is currently navigating a transition toward automotive and artificial intelligence data center chips to offset the impact of a declining global smartphone market.