$QCOM · QUALCOMM INC/DE
Qualcomm reported Q4 FY2026 (ended Sept 27, 2026) results: GAAP revenue $10.32B, down 8% YoY; GAAP diluted EPS $1.17 vs a year-ago loss of $2.89. Full-year FY2026 revenue was $43.12B (-3%) with GAAP EPS $12.70, boosted by a $5.7B tax benefit from a valuation-allowance release. QCT handset revenue fell 26% YoY to $5.14B, while automotive grew 89% to $1.99B and IoT rose 4% to $1.89B. Q1 FY27 guidance: revenue $10.4B-$11.2B and non-GAAP diluted EPS $2.15-$2.35.
- Q4 FY2026 GAAP revenue $10.32B, down 8% YoY; non-GAAP revenue $10.44B, down 7%.
- QCT handset revenue fell 26% YoY to $5.14B; automotive rose 89% to a record $1.99B.
- Full-year FY2026 GAAP EPS $12.70 included a $5.7B tax benefit from a valuation-allowance release.
- Q1 FY27 guidance: revenue $10.4B-$11.2B, non-GAAP diluted EPS $2.15-$2.35.
- Returned $11.67B to stockholders in FY2026 via $7.82B buybacks and $3.85B dividends.
Extended-hours last trade $159.48, down 7.92% vs the $173.19 regular close, despite the regular session closing up 5.33% — the after-hours move signals disappointment with the 8% revenue decline and handset weakness.
Qualcomm's core handset business is shrinking sharply while its automotive/data-center diversification accelerates, making FY2027 a pivotal transition year.
Qualcomm's handset decline contrasts with its diversification push into automotive, IoT, and data center, mirroring the broader semiconductor shift toward AI infrastructure.
Broad-based semiconductor input-cost inflation (wafer fab, assembly, test, packaging, memory) is pressuring QCT gross margins, with full pricing benefit not expected until H2 FY2027. Heavy China concentration and dependence on a small number of handset customers/licensees remain key risks.