According to Zhitong Finance APP, Qualcomm (QCOM.US) released its fourth-quarter fiscal year 2026 earnings report after market close on November 4 (ended September 27): GAAP revenue was $10.322 billion, a year-over-year decrease of
8%, above the market expectation of $10.1 billion; non-GAAP diluted EPS of $2.17, a 28% year-over-year decline, slightly exceeding the expected $2.16.
Qualcomm noted that component and manufacturing costs have "generally increased." Like many chip manufacturers, the company is facing higher expenses due to shortages in its own supply chain and insufficient supply of memory chips—both driven by a surge in demand for data center equipment.
On a positive note, demand from automotive and data center equipment manufacturers is offsetting the impact of slowing growth in the smartphone market. Smartphone suppliers remain Qualcomm’s largest customers, but they have reduced production due to soaring prices of memory chips and other components.
By business segment, QCT chip revenue was $9.015 billion, down 8%; automotive revenue was $1.99 billion, up 89% year-over-year, setting a new quarterly record and surpassing $2 billion for the first time.
US$1 billion. IoT revenue reached US$1.888 billion, up 4%. Combined growth for automotive and IoT was 36%, both exceeding expectations and partially offsetting smartphone contraction.
Currently, the mobile market remains a drag on Qualcomm's performance. Revenue for this business segment plunged 26% quarter-over-quarter to $5.14 billion, below analysts' expectations of $5.25 billion. Additionally, revenue from the technology licensing business, QTL,
$1.304 billion, down 7%.
Qualcomm, the world's largest smartphone processor manufacturer, delivered a lackluster profit forecast for the quarter, indicating that the company continues to struggle with rising component prices.
Profit guidance is the key takeaway of this quarter’s news. The company expects non-GAAP diluted EPS of $2.15–$2.35 for the first quarter of fiscal 2027, with a midpoint of $2.25 below analysts’ expectations.
$2.32; revenue guidance of $10.4 billion to $11.2 billion, midpoint above the expected $10.55 billion
Billion. Qualcomm explicitly stated that costs for wafer manufacturing, testing and packaging, advanced packaging, and memory have all increased, and these costs are being passed on through product pricing, with relief not expected until the second half of fiscal year 2027 for QCT.
The gross profit margin clearly reflects—memory chips are in short supply due to surging demand from data centers, forcing smartphone manufacturers to cut production.
GAAP net profit of $1.251 billion and earnings per share of $1.17 appear to show a year-over-year turnaround from loss to profit—actually due to a tax base effect: a charge of $6.088 billion was recorded in the same period last year.
$1.2 billion in income tax expenses and a net loss of $3.117 billion. Full-year GAAP earnings per share were $12.70, up 153% year-over-year, including the release of a $5.7 billion deferred tax valuation allowance in the second quarter (per share
$5.32); adjusted口径 non-GAAP full-year earnings per share of $10.54, a 12% year-over-year decline.
CEO Ammon stated that fiscal year 2027 is the "inflection point for non-phone revenue": non-phone revenue is expected to grow by more than 60% year-over-year, with reaffirmed target of $50 billion in data center revenue for fiscal year 2027.
Billion-dollar target; the company has renewed long-term QTL licensing agreements with Apple, Huawei, and Transsion, and announced a partnership with Amazon in AI
Multi-generational product collaboration at the data center. Earlier Wednesday, Qualcomm's efforts to diversify its customer base were bolstered by SpaceX, which
Plan to use Qualcomm's components in a nationwide terrestrial wireless network.
Ammon has consistently focused on expanding its business into areas such as personal computers, automobiles, networks, and most recently, data centers. Qualcomm announced that it has secured a major customer for its AI computing technology and emphasized that its expertise in manufacturing energy-efficient devices gives it a unique advantage.
However, investors remain cautious, causing Qualcomm's stock to decline steadily over the past few months. Qualcomm has been weighed down by concerns that new revenue growth is insufficient to offset the decline in its core business.
After the earnings report was released after hours, the stock dropped as much as 7.24% to $160.65 as of reporting. Year-to-date, it has risen 1.3% (as of the close on November 4).