Big drop: Qualcomm's handset chip revenue falls 26%

Qualcomm reported a 26% decline in handset chip revenue in the fourth quarter of 2026 to $5.14 billion, while automotive revenue grew 89% to $1.99 billion. Total revenue fell 8% to $10.32 billion. The stock fell more than 6% after the announcement.

Qualcomm, the American semiconductor company, announced on Wednesday a 26% decline in smartphone chip revenue during the fourth fiscal quarter of 2026, while its automotive business grew 89%. The financial results showed handset chip revenue fell to $5.14 billion, compared to a rise in automotive segment revenue to about $1.99 billion. Total revenue dropped 8% to $10.32 billion for the quarter ended September 27. For the full fiscal year 2026, Qualcomm's revenue was about $43.12 billion, down 3% from the previous year. According to Reuters, the company's stock fell more than 6% in extended trading after the results were announced. The agency quoted CEO Cristiano Amon as saying that sales of Android-based phones had hit their lowest levels and were beginning to show gradual improvement. Qualcomm confirmed it aims to achieve $5 billion in revenue from data center activity in fiscal 2027, exceeding $15 billion by 2029.