Qualcomm 3Q Revenue Falls as Handset Slowdown Offsets Automotive Gains

What happened

Qualcomm reported fiscal fourth-quarter revenue of $10.32 billion, down 8% year over year, while profit was $1.25 billion. Handset revenue fell 26% to $5.14 billion, offsetting automotive revenue growth of 89% to $1.99 billion. It also said two custom-chip programs are set to ramp up in fiscal 2027.

Confirmed

Global impact / market context

The results show Qualcomm’s current revenue remains exposed to handset demand: weaker phone-chip sales outweighed strong automotive growth. That matters because continued handset declines could pressure total sales, while automotive and data-center programs could become larger sources of revenue if their growth plans deliver.

Analyst inference

Revenue fell short of its prior-year level but exceeded analysts’ expectations; adjusted earnings per share, meaning profit per share excluding certain one-time items, also slightly beat expectations. Shares nevertheless fell 4.9% after hours, suggesting investors focused on the handset decline or future growth execution.

Analyst inference

What to watch

1. Track handset revenue in coming results: another decline would indicate whether the 26% fall reflects sustained weakness and could keep pressure on Qualcomm’s overall sales. Analyst inference
2. Watch automotive revenue for evidence that its 89% increase continues; sustained growth could help offset handset weakness, while a slowdown would reduce that potential support. Analyst inference
3. Check whether the two custom-silicon programs ramp up in fiscal 2027 and whether Qualcomm maintains its stated $5 billion data-center revenue target for that fiscal year. Confirmed

Evidence

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