Qualcomm reports Q4 earnings as automotive sales rise amid handset decline

Qualcomm (QCOM) reported fourth quarter financial results on Wednesday, November 4, 2026, exceeding analyst expectations for both earnings per share (EPS) and revenue. However, the company's earnings per share forecast for the first quarter resulted in a lower-than-expected midpoint, which impacted the stock price following the report.

Fourth Quarter Financial Results

For the fourth quarter, Qualcomm reported adjusted earnings per share of $2.17 on revenue of $10.32 billion. These figures surpassed analyst projections, which had estimated EPS of $2.16 and revenue of $10.12 billion. In the same quarter of the previous year, the company reported EPS of $3 and revenue of $11.27 billion.

Segment performance for the quarter showed a mix of growth and decline:

• QCT Segment: This segment, which includes automotive and handset sales, reported revenue of $9 billion, exceeding the $8.8 billion analysts had expected. However, this represents an 8% decline year over year.
• Handset Business: Within the QCT segment, handset revenue saw a significant decrease, plunging 26% year over year to $5.1 billion, compared to analyst expectations of $5.3 billion.
• Automotive Segment: Sales in the automotive segment increased 89% to $2 billion, helping to offset losses in other areas.
• QTL Business: The QTL business line reported revenue of $1.3 billion for the quarter.

Q1 Outlook and Market Challenges

Qualcomm provided revenue guidance for the first quarter of $10.4 billion to $11.2 billion, with the midpoint exceeding the $10.6 billion outlook from Wall Street. However, the company's EPS guidance for Q1 is set to fall between $2.15 and $2.35, with a midpoint of $2.25. This midpoint was lower than the $2.32 analysts were looking for.

The company is currently navigating several industry-wide challenges. According to reports, the semiconductor industry is contending with a memory and storage shortage, which has led to price increases for products ranging from smartphones to laptops and has impacted consumer demand. Additionally, Intel and AMD have both indicated they expect PC sales to decline in the coming quarter.

Strategic Diversification

Qualcomm is currently engaged in efforts to reduce its dependence on smartphone chip sales by bolstering its businesses in data centers, automotive, edge computing, and PCs. Recent strategic moves include:

• SpaceX: Qualcomm announced a deal to provide technology to SpaceX's Starlink.
• Amazon: In September, the company signed an agreement with Amazon for custom chips designed for its AWS AI infrastructure.
• Anduril: Qualcomm is working with Anduril on a product line called BlueChip, which focuses on reshoring computer manufacturing, starting with a laptop using Snapdragon X series chips.

Why it matters

Qualcomm's ability to grow its automotive and infrastructure businesses is critical as the company seeks to offset volatility in the handset market. While the company has seen significant growth in automotive sales, the decline in handset revenue and the impact of rising component costs remain significant factors in its overall financial trajectory.

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Sources

• investor.qualcomm.com: Qualcomm - Qualcomm Earnings Release Available on Company's Investor Relations Website
• finance.yahoo.com: Qualcomm tops Q4 estimates, but Q1 earnings outlook falls short
• barchart.com: Dear Qualcomm Stock Fans, Mark Your Calendars for November 4

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.