Qualcomm reported an 8% decline in fiscal fourth-quarter revenue Nov. 4, as a steep fall in handset chip sales outweighed growth in automotive technology. The results show the uneven performance of its businesses as it expands beyond smartphones.
Revenue under generally accepted accounting principles was $10.322 billion for the quarter ended Sept. 27, down from $11.270 billion a year earlier.
Automotive growth, weaker handset sales
The QCT chip business recorded automotive revenue of $1.99 billion, up 89% from a year earlier. Handset revenue fell 26% to $5.137 billion, while internet-of-things revenue increased 4% to $1.888 billion.
Total QCT revenue declined 8% to $9.015 billion. Yahoo Finance reported that Qualcomm is expanding its data-center, automotive, edge-computing and PC businesses as it seeks to reduce its dependence on smartphones.
Its QTL licensing business reported revenue of $1.304 billion, down 7% from a year earlier.
Pricing actions and the next quarter
Qualcomm forecast revenue of $10.4 billion to $11.2 billion for the first quarter of fiscal 2027. The range is a company projection, not a reported result.
The company said it is adjusting product pricing to reflect higher input costs across areas including wafer fabrication, packaging and memory. It expects the full benefit of those actions in QCT gross margins during the second half of fiscal 2027; that remains a forecast.
This report advances NextNow’s pre-earnings preview with the actual results.
Sources: Qualcomm’s fiscal fourth-quarter results; Yahoo Finance reporting.