Qualcomm's Quiet Rise: Automotive and Data Center Businesses Drive Growth

Qualcomm's fortunes may be changing, but it has little to do with Amazon and Meta. The company's automotive and data center businesses are taking center stage, quietly rewriting its story while everyone debates the Apple modem loss.

Automotive revenue reached $1.59 billion in the quarter, up 61% year over year, marking 23 consecutive quarters of double-digit growth. Non-handset revenue is expected to reach $40 billion by fiscal 2029, nearly double the target shared in November 2024.

CEO Cristiano Amon told investors that non-handset revenue should accelerate from 24% in fiscal 2026 to greater than 60% in fiscal 2027. Two hyperscaler custom-silicon engagements have purchase orders in hand, wafer production underway, and revenue starting in the December quarter.

Qualcomm's capital return is also impressive, with full fiscal 2025 free cash flow reaching $12.82 billion, up 14.86% YoY. The company sent $12.60 billion back to shareholders through dividends and buybacks, with a current yield of 1.98% and a free cash flow yield of 6.66%.