Qualcomm Inc.: Q4 FY2026 earnings call

What management said about Q4 FY2026, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 7 new, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Non-GAAP revenue fell 7%: Non-GAAP revenue was $10,442 million, down 7% from $11,270 million; GAAP revenue was $10,322 million, down 8%. Non-GAAP excludes QSI, share-based compensation and other items. Source
• Non-GAAP EPS fell 28%: Diluted EPS was $1.17 on a GAAP basis, against a $2.89 loss a year earlier. Non-GAAP diluted EPS was $2.17, against $3.00, down 28%. Source
• Full-year non-GAAP revenue down 2%: GAAP revenue for fiscal 2026 was $43,120 million, down 3%; non-GAAP revenue was $43,240 million, down 2%. Non-GAAP earnings before taxes were $12,976 million, down 16%. Source
• QCT quarterly margin fell to 24%: QCT fourth-quarter revenue was $9,015 million, down 8%, with EBT of $2,142 million, down 26%, a 24% margin against 29%. Source
• Automotive passed $2 billion in a quarter: The company reported that QCT Automotive revenue reached $2 billion in a single quarter for the first time, growing 89% year over year. Source
• Tax benefit lifted GAAP full-year income: Fiscal 2026 GAAP results included a $5.7 billion income tax benefit, or $5.32 per share, from releasing a valuation allowance set up in the fourth quarter of fiscal 2025. Source

“We are pleased to deliver fourth quarter non-GAAP revenues at the high end of our guidance, along with 36% year-over-year growth in combined QCT Automotive and IoT revenues,”

Cristiano Amon, President and CEO of Qualcomm Incorporated

Guidance

What changed from last quarter

• New guidance: Guidance for the first quarter of fiscal 2027 is given in this release; the prior release gave guidance for the fourth quarter of fiscal 2026. Source
• New: Long-term QTL license agreements were renewed with Apple, Huawei and Transsion, as stated in the release headline. Source
• New: A multi-generational product collaboration with Amazon for AI data centers was announced. Source
• Guidance kept: The fiscal 2027 Data Center revenue target of $5B was reiterated, with no change stated. Source
• Guidance kept: Non-handset revenue growth projection for fiscal 2027 is stated as more than 60%, the same threshold as in the prior release. Source

Fourth quarter results

• Non-GAAP revenue fell 7%: Non-GAAP revenue was $10,442 million, down 7% from $11,270 million; GAAP revenue was $10,322 million, down 8%. Non-GAAP excludes QSI, share-based compensation and other items. Source
• Non-GAAP EPS fell 28%: Diluted EPS was $1.17 on a GAAP basis, against a $2.89 loss a year earlier. Non-GAAP diluted EPS was $2.17, against $3.00, down 28%. Source
• Non-GAAP pre-tax margin narrowed: Non-GAAP earnings before taxes were $2,666 million, down 30%, with a 26% margin on revenue against 34% a year earlier. GAAP earnings before taxes were $1,173 million. Source
• Net income turned to profit: GAAP net income was $1,251 million, against a $3,117 million loss a year earlier. Non-GAAP net income was $2,332 million, down 28% from $3,257 million. Source

Fiscal 2026 full-year results

• Full-year non-GAAP revenue down 2%: GAAP revenue for fiscal 2026 was $43,120 million, down 3%; non-GAAP revenue was $43,240 million, down 2%. Non-GAAP earnings before taxes were $12,976 million, down 16%. Source
• Full-year non-GAAP EPS down 12%: GAAP diluted EPS was $12.70, against $5.01, and non-GAAP EPS was $10.54, against $12.03. GAAP net income was $13,628 million, against $5,541 million. Source
• Full-year margin: 22% GAAP, 30%: EBT as a share of revenue was 22% on a GAAP basis and 30% non-GAAP, against 29% and 35% in fiscal 2025. Source

“Fiscal 2027 marks the start of our non-handset revenue inflection, including the ramp of our Data Center business.”

Cristiano Amon, President and CEO of Qualcomm Incorporated

Segments: QCT and QTL

• QCT quarterly margin fell to 24%: QCT fourth-quarter revenue was $9,015 million, down 8%, with EBT of $2,142 million, down 26%, a 24% margin against 29%. Source
• QTL quarterly EBT down 10%: QTL fourth-quarter revenue was $1,304 million, down 7%; EBT was $918 million, down 10%, a 70% margin against 72%. Source
• Full-year QCT revenue down 3%: QCT revenue for fiscal 2026 was $37,208 million, down 3%, with EBT down 13% to $10,101 million. QTL revenue was flat at $5,556 million; QTL EBT was $4,022 million, down 1%. Source

Products and revenue streams

• Handset revenue down 26% in quarter: Handset revenue was $5,137 million in the fourth quarter, down 26%, and $24,072 million for the year, down 13%. Source
• Automotive and IoT revenue growth: Automotive revenue was $1,990 million, up 89%, and $6,004 million for the year, up 52%. IoT revenue was $1,888 million, up 4%, and $7,132 million for the year, up 8%. Source
• Automotive passed $2 billion in a quarter: The company reported that QCT Automotive revenue reached $2 billion in a single quarter for the first time, growing 89% year over year. Source
• Equipment, services and licensing revenue: Equipment and services revenue was $8,893 million in the fourth quarter, against $9,674 million; licensing revenue was $1,429 million, against $1,596 million. Source

Costs, tax and charges

• Research and development costs rose: Cost of revenues was $5,084 million in the fourth quarter, against $5,033 million. R&D was $10,207 million for the year, against $9,042 million; SG&A was $3,701 million, against $3,110 million. Source
• Restructuring and acquisition charges excluded: Non-GAAP results excluded $235 million of restructuring charges and $141 million of acquisition-related charges in the fourth quarter. Source
• Tax benefit lifted GAAP full-year income: Fiscal 2026 GAAP results included a $5.7 billion income tax benefit, or $5.32 per share, from releasing a valuation allowance set up in the fourth quarter of fiscal 2025. Source
• Non-GAAP tax rate set at 12.5%: The non-GAAP tax provision used a fixed estimated rate of 12.5% for the fourth quarter. The blended rate for fiscal 2026 was approximately 13%. Source
• Share-based compensation rose: Share-based compensation expense was $3,452 million for fiscal 2026, against $2,783 million a year earlier. Source

Cash, capital returns and balance sheet

• Fourth-quarter capital returns reached $1,998 million: In the fourth quarter the company repurchased 6 million shares for $1,011 million and paid $987 million of dividends, $0.92 per share. For fiscal 2026 it returned $11,671 million in total. Source
• Operating cash flow fell, capex rose: Net cash provided by operating activities was $11,145 million for fiscal 2026, against $14,012 million. Capital expenditures were $2,494 million, against $1,192 million. Source
• Short-term debt added at year end: Short-term debt was $2,492 million at year end, against none a year earlier. Long-term debt was $12,620 million, against $14,811 million, and cash and cash equivalents were $4,636 million. Source
• Acquisition spending increased: Acquisitions and other investments, net of cash acquired, were $1,577 million for fiscal 2026, against $743 million. Goodwill rose to $16,374 million from $11,358 million. Source

Growth, licensing and collaborations

• Amazon collaboration for AI data centers: Qualcomm announced a multi-generational product collaboration with Amazon aimed at AI data centers. The release gives no terms of the arrangement. Source
• QTL license renewals with three licensees: Long-term QTL license agreements were renewed with Apple, Huawei and Transsion, listed in the release headline. Source
• Non-handset revenue inflection in fiscal 2027: Management described fiscal 2027 as the start of a non-handset revenue inflection, including the ramp of its Data Center business. Source

Coming up, as management said on 4 November 2026

• Pricing benefit expected second half: Management expects the full benefit of its pricing actions, taken to reflect higher input costs, to appear in QCT gross margins during the second half of fiscal 2027. Source

Risks management discussed

• Regulatory: A payment to a customer, tied to a recent legal settlement, reduced GAAP revenue by $120 million; non-GAAP revenue excludes it. Source

Earlier plans management reported on

• Not stated: Management refers back to earlier disclosure of pricing actions taken against higher input costs in its product pricing. Source
• Met: Non-GAAP revenue for the fourth quarter was at the high end of the guidance range given in the prior release. Source
• Not stated: The $5B fiscal 2027 Data Center target is restated in this release as a reiteration of an earlier target. Source

Other quarters

• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.