Qualcomm Reports Q4 2026 Results with Strong Automotive Growth Amid Handset Decline

Qualcomm (QCOM) reported fourth-quarter non-GAAP revenue of $10.4 billion, hitting the high end of management's guidance despite a significant drop in earnings per share to $2.17 from $3.00 in the prior year. The results highlight a major strategic shift as the company diversifies away from its traditional handset core; while QCT Handset revenue fell 26% due to industry-wide memory dynamics and Apple transitions, the Automotive segment saw an explosive 89% increase to $2 billion. Looking ahead, Qualcomm is aggressively pivoting toward data center and AI infrastructure. Management provided optimistic guidance for fiscal 2027, projecting non-handset QCT revenue growth of over 60%. The company also highlighted a massive potential $60 billion opportunity with Amazon regarding custom silicon for AI inference. While custom silicon engagements may temporarily dilute gross margins, the long-term focus remains on scaling automotive and data center run rates.

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