Qualcomm (QCOM) Earnings Report Says Sales Beyond Phones Will Grow Over 60% in Fiscal 2027
Qualcomm earnings showed phone chip sales down 26% in the quarter to September 27, 2026, and the stock was down 6.9% after hours at 5:53 p.m. ET. Qualcomm expects Apple to mostly use its own modem chips from now on, and it says its sales outside phones will grow more than 60% in fiscal 2027.
The short answer. Qualcomm is losing Apple's modem orders and turning to cars and AI data centers, with chips for Amazon among them. Phones made up about 65% of its chip sales in fiscal 2026, down from 72% a year earlier. If the 60% growth applies to its car and IoT chip sales, they would top $21 billion in fiscal 2027. Reuters tied the stock's fall to phone chip sales below estimates and lower Apple-related revenue.
Qualcomm fourth quarter of fiscal 2026 at a glance
Show the data
| Category | Phones | Cars | Connected devices (IoT) |
|---|---|---|---|
| Dec 2024 | $7.6B | $1.0B | $1.5B |
| Mar 2025 | $6.9B | $1.0B | $1.6B |
| Jun 2025 | $6.3B | $1.0B | $1.7B |
| Sep 2025 | $7.0B | $1.1B | $1.8B |
| Dec 2025 | $7.8B | $1.1B | $1.7B |
| Mar 2026 | $6.0B | $1.3B | $1.7B |
| Jun 2026 | $5.1B | $1.6B | $1.8B |
| Sep 2026 | $5.1B | $2.0B | $1.9B |
Every company reporting the same week, with its date and time, is in StockTitan's Earnings Calendar for the Week of November 2, 2026.
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Why Qualcomm stock fell after the earnings report
The stock fell within minutes of the report. Reuters tied the drop to phone chip sales that missed analysts' estimates and to declining Apple-related revenue.
Qualcomm shares closed the regular session at $173.19 on Wednesday, November 4, 2026, according to StockTitan real-time Nasdaq data. The results came out at 4 p.m. ET, and within five minutes the stock traded near $164.
At 5:53 p.m. ET, in after-hours trading, it was at $161.30, down 6.9% from the close. Its low after the bell was $158.22.
Reuters reported that phone chip sales fell short of Wall Street estimates on "sluggish demand and declining Apple-related revenue." Analysts had expected $5.25 billion from phone chips, according to the consensus compiled by Visible Alpha. Qualcomm reported $5.14 billion.
Reuters also reported that chief executive Cristiano Amon said the forecast for the current quarter "includes no further sales from Apple." Apple is moving to modem chips it designs itself.
For the quarter to December, Qualcomm forecasts revenue of $10.4 billion to $11.2 billion. Analysts expected $10.48 billion, according to the consensus compiled by LSEG. Qualcomm expects adjusted earnings, which leave out some costs, of $2.15 to $2.35 a share.
The company also warned about costs. It says making chips is getting more expensive across the industry, from factories and packaging to memory. Qualcomm is raising its own prices to cover this, and it expects the full benefit only in the second half of fiscal 2027. Live prices are on StockTitan's Qualcomm stock page.
Qualcomm's quarter against its own July forecast
Adjusted sales landed near the top of the range Qualcomm gave in July. Adjusted earnings a share met its forecast, and earnings on the standard accounting basis fell below it.
Qualcomm reported its results after the market closed, in a release filed with the SEC. In July, it had forecast revenue of $9.7 billion to $10.5 billion for the quarter, in its third quarter release.
Qualcomm also gives an adjusted revenue figure, which it calls non-GAAP. It was $10.44 billion. Amon said that figure came in "at the high end of our guidance," meaning the company's own forecast range.
Show the data
| Item | Low | High | Value |
|---|---|---|---|
| Adjusted revenue | $9.70B | $10.50B | $10.44B |
| Chip sales (QCT) | $8.40B | $9.00B | $9.02B |
Revenue on the standard accounting basis (GAAP) was $10.32 billion, down from $11.27 billion a year earlier. The adjusted figure leaves out $120 million of items, among them a payment to a customer after a legal settlement.
Profit looks very different depending on the measure. On the GAAP basis, Qualcomm earned $1.17 a share, below the range it gave in July. That figure carries $235 million of restructuring charges, which the adjusted figure leaves out.
On Qualcomm's adjusted basis, which also leaves out share-based pay and acquisition costs, earnings fell 28% to $2.17 a share. That sits inside the July range.
| Quarter to September | July forecast | 2026 | 2025 | Change |
|---|---|---|---|---|
| Revenue (GAAP) | $9.7 billion to $10.5 billion | $10,322 million | $11,270 million | Down 8% |
| Revenue (non-GAAP) | $9.7 billion to $10.5 billion | $10,442 million | $11,270 million | Down 7% |
| QCT revenue (chips) | $8.4 billion to $9.0 billion | $9,015 million | $9,821 million | Down 8% |
| QTL revenue (licensing) | $1.2 billion to $1.4 billion | $1,304 million | $1,409 million | Down 7% |
| Net income (GAAP) | $1,251 million | Loss of $3,117 million | Swung to a profit | |
| Diluted EPS (GAAP) | $1.22 to $1.42 | $1.17 | Loss of $2.89 | Swung to a profit |
| Net income (non-GAAP) | $2,332 million | $3,257 million | Down 28% | |
| Diluted EPS (non-GAAP) | $2.05 to $2.25 | $2.17 | $3.00 | Down 28% |
Source: Qualcomm fourth quarter and fiscal 2026 results and third quarter fiscal 2026 results (Business Outlook), Form 8-K exhibits 99.1, quarters ended September 27, 2026 and September 28, 2025. A year earlier, Qualcomm reported a GAAP loss after income tax expense of $6.09 billion in that quarter.
Qualcomm's phone chip sales and what Apple's move means
Phones still bring in most of Qualcomm's chip sales, but a smaller share than a year earlier. In fiscal 2026, phone chips brought in $24.07 billion of the $37.21 billion its chip business sold.
Qualcomm has two main businesses. QCT sells chips, such as its Snapdragon chips for phones. QTL licenses Qualcomm's patents, and it earns mostly from phones; it brought in $5.56 billion in fiscal 2026.
Phone chips were about 65% of chip sales in fiscal 2026, down from 72% a year earlier.
In the fourth quarter, phone chip sales fell 26%, to $5.14 billion from $6.96 billion.
Memory is part of the reason. Qualcomm's annual report says phone makers cut their build plans because memory became scarce and more expensive. It expects this to keep hurting demand from several phone makers.
Chips for cars went the other way. They rose 89% to $1.99 billion, which Qualcomm calls its first $2 billion quarter for cars.
Chips for connected devices, which Qualcomm calls IoT (the internet of things), rose 4% to $1.89 billion. Together, cars and IoT grew 36%, Amon said.
| Chip sales by market, quarter to September | 2026 | 2025 | Change |
|---|---|---|---|
| Handsets | $5,137 million | $6,961 million | Down 26% |
| Automotive | $1,990 million | $1,053 million | Up 89% |
| IoT | $1,888 million | $1,807 million | Up 4% |
| Total QCT | $9,015 million | $9,821 million | Down 8% |
| QTL (licensing) | $1,304 million | $1,409 million | Down 7% |
Source: Qualcomm fourth quarter and fiscal 2026 results, Form 8-K exhibit 99.1, QCT revenue streams and segment results
Apple is the biggest change ahead. In its annual report filed on November 4, 2026, Qualcomm says it expects that Apple "will primarily use its own modem products, rather than our products, in its devices going forward." It says this will have "a significant negative impact" on its chip sales.
Apple still pays for Qualcomm's patents. Qualcomm renewed its long-term license deals with Apple, Huawei and Transsion in the quarter. Its deals with key phone makers now run until fiscal 2030 to 2033, the annual report says.
The annual report says Apple and Samsung each brought in at least 10% of Qualcomm's revenue in fiscal 2026. It says customers based in China, Hong Kong included, brought in 42% of revenue, down from 46% a year earlier. Qualcomm counts this by where each customer has its head office.
StockTitan's article on Arm's results the same day sets Qualcomm's quarter beside other chip makers.
Qualcomm's plan to grow outside phones in fiscal 2027
Qualcomm says its sales outside phones will grow more than 60% in its new fiscal year. If that growth applies to its car and IoT chip sales, they would top $21 billion.
"Fiscal 2027 marks the start of our non-handset revenue inflection, including the ramp of our Data Center business," Amon said. He added that Qualcomm is "reiterating our fiscal 2027 Data Center revenue target of $5B."
In fiscal 2026, Qualcomm sold $6.00 billion of car chips and $7.13 billion of IoT chips.
Most of the 60% jump rests on data centers. If data center chips bring in the $5 billion Qualcomm targets, car and IoT chips need to grow only about 22% for the total to top $21 billion. They grew 24% in fiscal 2026.
Qualcomm gives no separate data center revenue for fiscal 2026. Its chip sales are split only into phones, cars and IoT. Its chip forecast for the current quarter, $9.0 billion to $9.6 billion, is the first to include data center sales.
The annual report says Qualcomm expects data center revenue to grow from this quarter, as shipments start under custom chip deals with "certain large hyperscale customers." Those are the biggest cloud computing companies.
Qualcomm also announced a deal with Amazon covering several generations of chips for AI data centers. The release gives no sales figures for it. The annual report says Qualcomm gave an Amazon affiliate a warrant to buy up to 25 million Qualcomm shares at $161.26 each. The right to buy them unlocks as Amazon signs deals, places orders and makes purchases, up to $60 billion of payments.
The longer goal is bigger. In its July results release, Qualcomm said it aims for $40 billion of sales outside phones by fiscal 2029.
| Qualcomm forecast, first quarter of fiscal 2027 | Range |
|---|---|
| Revenue | $10.4 billion to $11.2 billion |
| QCT revenue, data center included | $9.0 billion to $9.6 billion |
| QTL revenue | $1.3 billion to $1.5 billion |
| Diluted EPS (GAAP) | $1.03 to $1.23 |
| Diluted EPS (non-GAAP) | $2.15 to $2.35 |
Source: Qualcomm fourth quarter and fiscal 2026 results, Form 8-K exhibit 99.1, Business Outlook
Qualcomm's full fiscal 2026 and the cash it paid out
For the whole year, revenue slipped 3% to $43.12 billion. A large tax gain lifted Qualcomm's reported profit, while its adjusted profit fell.
Phone chip sales fell 13% over the year, to $24.07 billion. Car chip sales rose 52% to $6.00 billion.
Reported earnings were $12.70 a share, up from $5.01. That figure includes a $5.7 billion tax benefit. It came from undoing a tax write-down Qualcomm made a year earlier.
On the adjusted basis, earnings fell 12% to $10.54 a share.
Qualcomm paid shareholders $11.67 billion over the year. It spent $7.82 billion buying back 48 million of its shares. It paid $3.85 billion in dividends, or $3.62 a share, including $0.92 a share in the fourth quarter.
Its share count barely moved, to 1,072 million at the end of September from 1,074 million a year earlier. Debt rose to $15.11 billion from $14.81 billion.
| Fiscal year to September | 2026 | 2025 | Change |
|---|---|---|---|
| Revenue (GAAP) | $43,120 million | $44,284 million | Down 3% |
| Diluted EPS (GAAP) | $12.70 | $5.01 | Up 153% |
| Diluted EPS (non-GAAP) | $10.54 | $12.03 | Down 12% |
| Handsets | $24,072 million | $27,793 million | Down 13% |
| Automotive | $6,004 million | $3,957 million | Up 52% |
| IoT | $7,132 million | $6,617 million | Up 8% |
| Share buybacks | $7,817 million | ||
| Dividends paid | $3,854 million | ||
| Shares outstanding at year end | 1,072 million | 1,074 million | |
| Short-term debt | $2,492 million | None | |
| Long-term debt | $12,620 million | $14,811 million |
Source: Qualcomm fourth quarter and fiscal 2026 results, Form 8-K exhibit 99.1, fiscal years ended September 27, 2026 and September 28, 2025, and its balance sheet
What to watch
- Whether Qualcomm reports data center sales on their own line: its next quarterly report, for the quarter to late December 2026.
- Sales figures for the Amazon deal: Qualcomm's quarterly filings, as the warrant shares vest with Amazon's orders and purchases.
- The effect of Qualcomm's price increases: its quarterly reports in the second half of fiscal 2027, when it expects their full benefit.
Our numbers
These figures are our calculations from the sources linked in this article.
- Down 6.9% after hours: the last trade of $161.30 at 5:53 p.m. ET against the November 4 close of $173.19.
- Phones at about 65% of chip sales in fiscal 2026: $24,072 million of $37,208 million of QCT revenue.
- Phones at about 72% of chip sales in fiscal 2025: $27,793 million of $38,367 million.
- Car and IoT chip sales up 24% in fiscal 2026: $13,136 million, against $10,574 million in fiscal 2025.
- Over $21 billion outside phones in fiscal 2027: the $13,136 million base grown by 60%, which gives $21,018 million.
- About 22% growth needed from car and IoT chips: $21,018 million less the $5 billion data center target, against the $13,136 million base.
- Debt of $15.11 billion: $2,492 million of short-term debt plus $12,620 million of long-term debt.
Qualcomm does not say which sales its 60% forecast starts from. These figures start from car and IoT chip sales, which grew 24% in fiscal 2026, matching the growth outside phones Qualcomm gave in July.
Frequently asked questions
Why did Qualcomm stock fall after earnings?
Reuters reported that phone chip sales fell short of estimates on "sluggish demand and declining Apple-related revenue." The stock was down 6.9% in after-hours trading at 5:53 p.m. ET on November 4, 2026, according to StockTitan real-time Nasdaq data.
Did Qualcomm beat its own forecast?
Qualcomm said its adjusted revenue of $10.44 billion came in at the high end of the $9.7 billion to $10.5 billion range it gave in July. Adjusted earnings of $2.17 a share were inside its range, while GAAP earnings of $1.17 a share were below it.
How much of Qualcomm's business still comes from phones?
Phone chips brought in $24.07 billion of the $37.21 billion Qualcomm's chip business sold in fiscal 2026. Its licensing business, which earns mostly from phones, brought in $5.56 billion more.
Is Apple still a Qualcomm customer?
Apple still licenses Qualcomm's patents and renewed that deal. In its annual report filed on November 4, 2026, Qualcomm says it expects that Apple "will primarily use its own modem products, rather than our products, in its devices going forward." Reuters reported that Amon said the forecast for the current quarter "includes no further sales from Apple."
What does Qualcomm expect for the next quarter?
For the first quarter of fiscal 2027, Qualcomm forecasts revenue of $10.4 billion to $11.2 billion and adjusted earnings of $2.15 to $2.35 a share.
When did Qualcomm report earnings?
Qualcomm reported its results on Wednesday, November 4, 2026, after the market closed. It held its conference call at 1:45 p.m. Pacific Time the same day.
Sources
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