Qualcomm revenue has fallen to 2% and reached $43.24 billion

Qualcomm has reported revenue of $43.24 billion for the current fiscal year. Compared with the previous year, it has declined by 2%. IoT, automotive, and AI drove higher growth, while smartphone chip sales declined significantly.

The company has chosen a strategy that is mainly oriented toward AI infrastructure, robotics, automotive technology, and other spheres rather than entirely relying on smartphones. There are plans to expand future relations with Google, Amazon, HP, and other leading players.

​A Noticeable Revenue Reduction

In Q4 of the current year, Qualcomm's revenue has dropped almost 7 percent. The comparison is done with the same quarter in 2025, when the revenue reached almost $11.27 billion.  

According to the analytical expectations in Q1 of 2027, the revenue can reach approximately $11.2 billion. This can be achieved due to the growth of the data center business and general expansion of the portfolio.

The revenue from the smartphone sector has dropped approximately 26% in Q4 of the current year. Fiscal 2026 is characterized by a 13% decline in the sector. Despite this huge decline, smartphones are still the main revenue source for the company. Qualcomm is going to focus mainly on premium smartphones while at the same time searching for other sources of income beyond them.

Such a decline in the smartphone chip market is noticeable not only in Qualcomm, but in other businesses as well. The entire smartphone market has significantly dropped to almost 22% in the third quarter of the current year. This is considered to be the biggest decline which has ever been noticed.

Automotive and IoT Revenue Shows Strong Growth

Probably the biggest growth was noticeable in the Automotive sector during the current fiscal year. The increase is huge, from $3.96 billion in 2025 to almost $6.00 billion in the current year. Such a 52% increase visually reflects the expansion in vehicles, vehicle platforms, auto computing, and digital cockpits.

The company is considering the automotive sector as the major contributor to the potential revenue growth. However, there are also noticeable positive IoT revenue changes as well. The general increase in this sector has reached almost 8% when compared with the previous year. The IoT strategy covers enterprise connectivity, industrial computing, robotics, AI devices, and way more.

Additional Strategies to Increase Revenue

One more huge Qualcomm strategy is connected with expanding revenue in the AI data centre segment. This new opportunity can reach almost $650 million in revenue in the first quarter of 2027. In the long-term perspective, this segment can bring billions in annual revenue.

Partnership with Amazon can directly impact Qualcomm's AI infrastructure expansion.  The companies’ ten-year agreements include warrants with almost $60 billion.

The company is also planning to strengthen cooperation with Transsion, Apple, and Huawei. Here, the strategy is connected with the patent licensing agreements, which can also impact revenue.   

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