Qualcomm Beats Estimates, Handset Chips Slide

Qualcomm's fiscal fourth-quarter revenue topped expectations even as memory chip shortages pressured its handset business.

Updated on Nov. 5, 2026 in Semiconductors

Qualcomm Beats Estimates, Handset Chips Slide

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Qualcomm reported fiscal fourth-quarter 2026 revenue of $10.32 billion and adjusted earnings of $2.17 per share, both above market expectations. Overall revenue declined 8% year-over-year as handset chip revenue fell 26%.

Why it matters

Memory chip shortages and rising parts and manufacturing costs caused handset producers to cut production, weighing on one of Qualcomm's core businesses. The company's growth now depends more heavily on automotive and data center chips.

Qualcomm's automotive electronics revenue grew 89% year-over-year to approximately $2 billion, while handset chip revenue fell to $5.14 billion. The filing does not specify how much of the handset decline is attributable to memory shortages versus other factors.

The players

Qualcomm

Qualcomm is a San Diego-based semiconductor company known for its mobile processors and wireless technology licensing.

The details

Qualcomm guided next-quarter revenue of $10.4 billion to $11.2 billion and adjusted EPS of $2.15 to $2.35, with the EPS midpoint falling below the $2.32 market expectation. Shares fell more than 5% in after-hours trading following the report.

Fiscal fourth quarter 2026: Qualcomm reported revenue and adjusted EPS.
Next quarter: Qualcomm's guidance period for revenue and EPS.
FY2027: Qualcomm expects data center revenue to reach $5 billion.

The Tech Race

The handset slump comes as Qualcomm pushes into automotive and data center chips, where it is trying to offset weakness in its legacy smartphone franchise. Its competitive position now hinges on how quickly those newer segments scale against rivals in the AI and auto chip markets.

Smartphone buyers may see tighter supply and higher component costs as handset makers cut production, which can affect device availability and pricing. The memory shortage is the main pressure point cited in the earnings report.

The takeaway

Watch whether Qualcomm's automotive and data center growth can offset handset weakness over the coming quarters. Investors and readers should track guidance revisions as memory supply conditions evolve.