Qualcomm stock weighs handset slump against auto and data-center growth
Published on 11/12/2026 at 14:12 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSQualcomm's diversification faces handset pressure
- Fiscal fourth-quarter handset revenue fell 26 percent year over year, while automotive revenue rose 89 percent.
- Management targets more than 60 percent growth in non-handset revenue during fiscal 2027.
- The company expects data-center revenue above 650 million US dollars in the December quarter and targets 5 billion US dollars for fiscal 2027.
Qualcomm's fiscal fourth-quarter results put the company's diversification strategy at the center of the investment case. In its November 5 report, the chipmaker posted adjusted earnings of 2.17 US dollars per share and revenue of 10.32 billion US dollars, according to FinanceFeeds. Analysts had expected approximately 2.16 US dollars per share and 10.12 billion US dollars in revenue.
The headline beat was accompanied by a sharp split between Qualcomm's business lines. QCT handset revenue fell 26 percent year over year to 5.14 billion US dollars, reflecting weaker smartphone demand and pressure from industry-wide memory constraints. Total QCT revenue declined 8 percent to 9.02 billion US dollars, while the segment's earnings-before-tax margin narrowed from 30 percent to 27 percent for the full fiscal year.
Automotive growth offsets part of handset decline
Automotive was the strongest operating counterweight. Revenue reached a record 1.99 billion US dollars, up 89 percent from a year earlier. Internet of Things revenue increased 4 percent to 1.89 billion US dollars. Together, automotive and IoT revenue grew 36 percent year over year in the quarter.
That growth is becoming material for Qualcomm's earnings mix, but it does not yet fully replace the volume lost in handsets. Full-year handset revenue fell 13 percent to 24.07 billion US dollars, while total QCT revenue declined 3 percent to 37.21 billion US dollars. The figures leave investors focused on whether newer businesses can expand faster than the smartphone business contracts.
Data center ramp sets fiscal 2027 test
Management described fiscal 2027 as the start of a non-handset revenue inflection. Qualcomm expects non-handset businesses to grow by more than 60 percent year over year and reiterated a 5 billion US dollar data-center revenue target for the fiscal year. Data-center revenue is expected to exceed 650 million US dollars in the December quarter as custom silicon shipments begin to ramp.
For the first fiscal quarter, Qualcomm guided to revenue of 10.4 billion to 11.2 billion US dollars and adjusted earnings of 2.15 to 2.35 US dollars per share. The revenue range was above the midpoint of the cited analyst outlook, while the earnings midpoint was below expectations. Rising semiconductor input costs, including memory and advanced packaging, are adding pressure to profitability before the diversification program reaches its planned scale.
Qualcomm stock traded at 156.70 euros on Lang & Schwarz at 14:06 CET on Thursday, November 12, 2026.
Qualcomm stock facts
- Company: Qualcomm Incorporated
- ISIN: US7475251036
- Ticker: QCOM
- Home exchange: Nasdaq
- Lang & Schwarz price: 156.70 euros at 14:06 CET on November 12, 2026
Investors will next weigh the December-quarter delivery against the handset downturn, cost inflation and the pace of custom data-center shipments. The balance between near-term margin pressure and longer-term revenue diversification remains central to the stock's outlook.
US technology shares trade in the broader context of the S&P 500 market.
