Qualcomm Beats Estimates, Shares Slip on Apple Concerns
The chipmaker's fiscal fourth-quarter results topped expectations even as investors weighed its shrinking handset business with Apple.
Updated on Nov. 4, 2026 in Corporate Finance
Qualcomm reported fiscal fourth-quarter revenue of $11.27 billion, up 10% from a year earlier and above analyst expectations of $10.79 billion. Adjusted earnings of $3.00 a share beat a consensus of $2.88, yet the company's shares fell about 4.2% to $166.75.
Why it matters
The results highlight Qualcomm's dependence on a handset chip business that is contracting as Apple shifts toward its own in-house modems. Investors are weighing whether growth in automotive, IoT and custom data center chips can offset that loss.
Automotive revenue reached $1.05 billion, up 17% from a year earlier, while IoT revenue rose 7% to $1.81 billion. Handset chip revenue fell 20% year over year to $5.1 billion in the third fiscal quarter, underscoring the shift away from phones.
The players
Qualcomm
Qualcomm is a San Diego-based semiconductor company best known for its mobile processors and wireless modem technology.
Apple
Apple is the Cupertino-based consumer electronics maker that has been developing its own in-house modems to reduce reliance on Qualcomm.
JPMorgan
JPMorgan is a major U.S. investment bank whose analysts have argued that the Apple falloff will limit Qualcomm's revenue growth.
The details
Qualcomm's tenth consecutive earnings beat was also its ninth straight revenue beat. Apple's expanding use of in-house modems means Qualcomm's share of the current iPhone modem business will come in well below the roughly 20% it once expected, while its custom chip deals with hyperscale customers are beginning to ship.
Timeline
September 1: Qualcomm double-digit chip price increases take effect.
November 3: Qualcomm reports fiscal fourth-quarter results.
Fiscal 2026: Apple modem share decline accelerates.
Fiscal 2027: Data center revenue expected to reach $5 billion.
Market Dynamics
Apple's gradual move to its own modems has reshaped Qualcomm's largest handset relationship, pushing the company to seek growth in automotive, IoT and custom data center chips. Analysts at JPMorgan argue this shift will hold Qualcomm's total revenue growth to single digits across fiscal 2026 and 2027.
Investors holding Qualcomm shares face a near-term decline in the stock despite a revenue beat, so portfolio weightings should reflect the company's reliance on handset chips. Those tracking semiconductor exposure should watch whether automotive and IoT growth continues at the reported pace.
The takeaway
Strong quarterly results do not guarantee share gains when a company's largest product line is shrinking. Watching the pace of non-handset growth will be the clearest signal of whether Qualcomm can offset its Apple exposure.
What happens next
Qualcomm's fiscal fourth-quarter results were reported on November 3, and the company's chip price increases take effect September 1.
Further reading
Explore more Corporate Finance coverage to see how earnings reports like this one shape investor expectations.
