Qualcomm stock faces handset drag as data-center ramp begins

Published on 11/10/2026 at 14:43 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Qualcomm stock is entering fiscal 2027 with a sharp handset setback and a larger automotive contribution. Management is counting on data centers to reshape growth.

Qualcomm enters a new growth phase

Fiscal fourth-quarter revenue fell as handset demand weakened, while automotive revenue reached a record quarterly level.
Management reaffirmed its fiscal 2027 data-center revenue target and expects non-handset revenue to grow strongly.
First-quarter fiscal 2027 guidance points to continued pressure on the handset business during the transition.

Qualcomm, US7475251036, Illustration mit AI erstellt.

Qualcomm reported its fiscal fourth-quarter and full-year results on Wednesday, November 4, after the fiscal year ended September 27, 2026. The release, published by Qualcomm through MarketScreener, shows a business in transition: smartphone-related chip sales weakened sharply while automotive and other non-handset activities expanded.

Qualcomm stock traded at 149.84 euros on Lang & Schwarz at 14:35 CET on Tuesday, November 10, 2026.

Handset weakness meets diversification

Fourth-quarter GAAP revenue fell 8 percent year over year to USD 10.322 billion. Non-GAAP revenue declined 7 percent to USD 10.442 billion, while adjusted diluted earnings per share fell 28 percent to USD 2.17. The adjusted result was supported by the company's licensing business and came alongside substantial pressure in the chip division.

QCT revenue fell 8 percent to USD 9.015 billion. Handset revenue dropped 26 percent to USD 5.137 billion, reflecting weaker smartphone demand and higher industry input costs. Qualcomm said the semiconductor industry is facing broad-based cost increases across wafer fabrication, assembly, testing, advanced packaging, memory and other materials.

Automotive was the clearest counterweight. Revenue rose 89 percent to USD 1.990 billion, marking the first quarterly result of roughly USD 2 billion for the business. IoT revenue increased 4 percent to USD 1.888 billion. Together, automotive and IoT revenue grew 36 percent year over year, according to CEO Cristiano Amon.

Data center becomes the next test

Management presented fiscal 2027 as the start of a non-handset growth phase. Qualcomm expects non-handset revenue to grow by more than 60 percent year over year and reaffirmed its fiscal 2027 data-center revenue target of USD 5 billion. The company also announced a multigenerational product collaboration with Amazon for AI data centers.

The outlook carries execution risk. Qualcomm expects its new data-center activity to require investment before revenue scales, while custom-silicon programs can pressure margins during the ramp. At the same time, management said higher input costs should be increasingly reflected in QCT gross margins during the second half of fiscal 2027.

Near-term outlook remains demanding

For the first fiscal quarter of 2027, Qualcomm guided to revenue of USD 10.4 billion to USD 11.2 billion. QCT revenue is expected at USD 9.0 billion to USD 9.6 billion, QTL revenue at USD 1.3 billion to USD 1.5 billion, and non-GAAP diluted earnings per share at USD 2.15 to USD 2.35.

The guidance includes the data-center business, but handset revenue is still expected to decline sequentially as Android growth is offset by lower Apple-related sales. For investors, the central question is whether automotive, IoT and data-center expansion can outpace the continuing contraction in smartphones. The next quarterly report will provide the first major test of that transition.

US equities remain the relevant market backdrop for Qualcomm stock; investors can follow the S&P 500.

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