Business · Companies · 3 hrs ago
Qualcomm targets data center growth as phone chip sales fall
Qualcomm reported $1.25 billion in quarterly profit as it looks to reduce its reliance on phones.
Its revenue was $10.32 billion, down 8% from a year earlier.
Phone-chip revenue fell 26% in the quarter, while automotive revenue rose 89% and internet-of-things revenue grew 4%.
The company is expanding into AI data centers, including through a multi-year partnership with Amazon.
Qualcomm reiterated its target of $5 billion in data center revenue in fiscal 2027.
It expects data centers to eventually make up about 30% of its business, and says fiscal 2027 will begin a shift toward growth in businesses beyond phones.
Qualcomm reported a 8% year-over-year drop in quarterly revenue as it set out plans to expand in data centers.
The company forecast $5 billion in data center revenue for fiscal 2027 and said the business could eventually make up about 30% of its business.
Qualcomm reported net income of $1.25 billion for its fourth fiscal quarter and revenue of $10.32 billion.
Revenue from handset sales fell 26% to $5.14 billion, while automotive revenue rose 89% to $1.99 billion.
Qualcomm also announced a multiyear partnership with Amazon to develop products for AI data centers.
- Who
- Qualcomm, led by President and CEO Cristiano Amon.
- What
- The company reported quarterly results and outlined plans to grow its data center business as handset revenue fell.
- When
- It reported results on Wednesday, November 4, 2026.
- Where
- Not stated.
- Why
- Qualcomm is expanding into data centers as it seeks growth in non-handset businesses.
This story does not have two clearly opposing sides.
Qualcomm reported its fourth-quarter fiscal results and announced a multiyear partnership with Amazon for AI data center products.
Qualcomm forecast revenue of $10.4 billion to $11.2 billion and adjusted earnings of $2.15 to $2.35 per share.
Qualcomm expects data center revenue to reach $5 billion.
Qualcomm expects data center revenue to reach $15 billion.
- Fourth-quarter net income
- $1.25 billion
- Fourth-quarter revenue
- $10.32 billion, down 8% year over year
- Handset revenue
- $5.14 billion, down 26%
- Automotive revenue
- $1.99 billion, up 89%
- Fiscal 2027 data center revenue target
- $5 billion
- Data center share of business
- About 30% eventually
2 sources
What people are saying
Revenue from non-handset businesses are expected to grow more than 60% year over year, and we reiterate our fiscal 2027 data center revenue target of US$5 billion