Qualcomm handset sales slump as automotive revenue jumps 89%

Qualcomm's handset chip revenue fell 26% in its latest quarter compared with a year earlier, outweighing strong automotive growth as total sales declined 8%.

The US technology company released its fiscal fourth-quarter results on Wednesday, 4 November. The reporting period ended on 27 September.

Revenue was $10.32 billion. Adjusted earnings per share fell 28% to $2.17.

Car technology offsets part of the handset decline

Handset revenue dropped to $5.14 billion, while automotive revenue rose 89% to $1.99 billion. Internet-of-things revenue increased 4% to $1.89 billion.

Data centres feature in the next quarter's outlook

Qualcomm forecast revenue of $10.4 billion to $11.2 billion for its first quarter of fiscal 2027. That outlook includes its data-centre business.

Chief executive Cristiano Amon reiterated a $5 billion data-centre revenue target for fiscal 2027. The company expects revenue outside handsets to grow by more than 60% during that year.

Qualcomm also said it was reflecting higher semiconductor input costs in product prices. It expects the full benefit for chip-business gross margins in the second half of fiscal 2027.

Those figures are company forecasts, not completed sales. The release does not establish a change in South African retail device prices.