Qualcomm Reports 26% Decline in Handset Chip Revenue Amid Shifting Market Focus
Qualcomm (QCOM) reported a significant decline in its fiscal fourth quarter, driven by a 26% year-over-year drop in handset chip revenue. Total revenue fell 8% to approximately $10.3 billion, leading to an after-hours share price decline of about 4%. While the company's automotive segment showed strong growth with revenue nearly doubling to $2.0 billion, it has not yet been sufficient to offset the losses in its core mobile business. Profitability was also impacted, as chip segment pre-tax margins fell to 24% from 29%, largely due to rising R&D and engineering costs despite shrinking sales. Although management anticipates non-handset revenue growth exceeding 60% in fiscal 2027 through data center and automotive expansion, first-quarter guidance suggests this transition will be back-weighted toward the latter half of next year.
Tickers: $QCOM
Topics: automotive chips earnings report handset chips profit margins revenue decline
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Part of the story Qualcomm Shares Drop Despite Beating Earnings Estimates Due to Weak Guidance and Mobile Slump (8 articles)