Qualcomm stock faces earnings test as handset demand weakens
Published on 11/04/2026 at 14:53 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSWhat Qualcomm investors are watching
- Analysts expect fiscal fourth-quarter revenue of 10.15 billion US dollars and adjusted earnings of 2.16 US dollars per share.
- Handset revenue is expected to decline as Apple shifts toward internal modem development, while automotive and Internet of Things sales expand.
- Fiscal 2027 data-center targets and December-quarter guidance will test whether new businesses can offset smartphone weakness.
Qualcomm will publish its fiscal fourth-quarter and full-year 2026 results after the US market close on Wednesday, November 4. The report will be followed by a conference call at 4:45 p.m. Eastern Time, according to EBC Financial Group's earnings preview.
Analysts expect revenue of 10.15 billion US dollars and adjusted earnings of 2.16 US dollars per share. Against the year-earlier quarter, those estimates imply declines of about 10% and 28%, respectively. Qualcomm's own fiscal fourth-quarter outlook calls for revenue of 9.7 billion to 10.5 billion US dollars and non-GAAP diluted earnings of 2.05 to 2.25 US dollars per share.
Handset weakness meets new growth
The central issue is whether growth beyond smartphones can close the gap left by the handset business. Qualcomm expects handset revenue of about 5.2 billion US dollars in the quarter, roughly 25% below the prior-year period. Apple is gradually replacing Qualcomm components with internally developed cellular modems, and management expects Apple-related product revenue to fall by about 50% between the September and December quarters.
Automotive and Internet of Things operations are moving in the opposite direction. In the fiscal third quarter, automotive revenue reached 1.588 billion US dollars, up 61% year over year, while Internet of Things revenue rose 9% to 1.830 billion US dollars. EBC's comparison shows that the two businesses replaced 60.6% of the handset revenue decline, leaving total QCT revenue down 489 million US dollars year over year.
Margins add another test. Qualcomm's QCT pretax margin fell to 26% in the fiscal third quarter from 30% a year earlier. The company expects a fiscal fourth-quarter QCT pretax margin of about 23% to 25%, while higher wafer, assembly, testing and advanced-packaging costs weigh on profitability.
Data-center plans face a margin test
Qualcomm is targeting 5 billion US dollars of data-center revenue in fiscal 2027 and more than 15 billion US dollars annually by fiscal 2029. Custom-chip revenue is expected to begin ramping in the December quarter, with AI accelerators following later in fiscal 2027. Management expects the early custom-chip mix to reduce QCT's weighted gross margin by 1.5 to 2 percentage points.
Investors will therefore focus on December-quarter revenue and adjusted EPS guidance, as well as the pace of the Apple-related decline and the durability of automotive growth. EBC cites a current consensus of 2.29 US dollars for fiscal first-quarter 2027 adjusted EPS, down from 2.70 US dollars 90 days earlier.
Qualcomm stock traded at 150.73 euros on Lang & Schwarz at 14:39 CET on Wednesday, November 4, 2026. The real-time quote of Qualcomm stock is available separately.
Broader investor sentiment can be followed through current S&P 500 market coverage.
More news and analyses on Qualcomm stock will track the earnings release and the company's fiscal 2027 outlook.
Qualcomm company profile
- Company: QUALCOMM Incorporated
- ISIN: US7475251036
- Ticker: QCOM
- Home exchange: Nasdaq
- Lang & Schwarz quote: 150.73 euros on November 4, 2026, at 14:39 CET
