Qualcomm yesterday reported fiscal fourth-quarter 2026 results that beat expectations: revenue of about $10.4 billion versus roughly $10.1 billion expected, and adjusted EPS of $2.17. Year over year, though, revenue fell 8% and adjusted EPS fell 28%.
The guidance moved the stock lower after hours. For the current quarter Qualcomm expects revenue of $10.4–11.2 billion, above consensus, but adjusted EPS of $2.15–2.35, below analyst estimates. Capital spending also ran well ahead of expectations.
Qualcomm said production costs are rising across the chip industry, including because of the memory shortage, and that it is raising its product prices. The full benefit to margins is expected only in the second half of fiscal 2027. In other words, phone makers, and eventually consumers, will pay more.
The strong spots were the newer businesses: automotive revenue grew nearly 90%, and Qualcomm reiterated a $5 billion data center revenue target for fiscal 2027, with more than $650 million expected this quarter. Separately, Qualcomm begins global layoffs this month that, according to an internal memo from CEO Cristiano Amon, are based on annual performance reviews.
