Qualcomm reported fiscal fourth-quarter results that surpassed Wall Street expectations for both revenue and earnings per share. Analysts had anticipated non-GAAP EPS of approximately $2.16 and revenue of about $10.15 billion.
The company faces challenges in its handset division, which has historically served as its primary earnings engine. This segment is impacted by the loss of modem orders from Apple, subdued demand for Android devices, and rising memory costs.
Supply chain constraints within the smartphone and PC markets continue to create operational friction. In the previous fiscal third quarter of 2026, the company reported revenue of $9.95 billion and non-GAAP EPS of $2.21.
To mitigate reliance on the smartphone market, Qualcomm is expanding into data centers, the Internet of Things, and the automotive sector. The company reported record automotive revenue of $1.59 billion in fiscal Q3 2026.
Management has outlined a growth strategy targeting a more than 60% increase in non-handset revenue for fiscal 2027. This shift aims to diversify the company's income streams beyond its traditional mobile hardware business.
