Qualcomm details SpaceX deal, sees revenue contribution from 2027

Qualcomm expects the deal to begin contributing to revenue as it exits fiscal 2027, with fiscal 2028 expected to be the more significant period

In sum – what to know

SpaceX selects Qualcomm – A multi-year agreement will bring Qualcomm’s radio silicon, massive MIMO technology, digital-unit accelerators and Layer 1 software to Starlink Mobile’s U.S. terrestrial 5G network.

Deployment begins in 2027 – Qualcomm expects the agreement to start contributing to revenue as it exits fiscal 2027, with fiscal 2028 being the more significant period.

Automotive and IoT expand – QCT automotive revenue reached nearly $2 billion in the quarter, up 89% year-on-year, while combined automotive and IoT revenue grew 36%.

Qualcomm’s chief executive officer Cristiano Amon described the company’s recently announced agreement with SpaceX as “probably one of the largest build-outs of a network,” highlighting the scale of the opportunity during the company’s Q4 FY2026 earnings call.

Under the multi-year agreement, Qualcomm will provide technology for Starlink Mobile’s U.S. terrestrial 5G network, including radio silicon supporting massive MIMO, accelerators for the digital unit and commercial-grade Layer 1 software. The technology is part of Qualcomm’s Dragonwing Cellular Infrastructure platforms.

During the call, Qualcomm executives also provided a timeline for the agreement’s financial contribution. The company expects it to begin contributing to revenue as it exits fiscal 2027, with fiscal 2028 expected to be the more significant period.

Amon clarified that the agreement concerns terrestrial infrastructure. “It’s terrestrial network. We provide silicon content for radio, including massive MIMO, as well as the accelerator for the digital unit, and we provide software on the Layer 1,” Amon said.

Qualcomm’s Dragonwing infrastructure platforms will bring together advanced massive MIMO, purpose-built radio access network (RAN) processing and commercial-grade Layer 1 software. Amon said the multi-year agreement also covers the companies’ thinking about the next generation of wireless technology.

The executive described the partnership as an opportunity to advance U.S. wireless leadership, starting with 5G and the convergence of satellite and terrestrial connectivity. He also said the agreement represents a significant win for Qualcomm’s infrastructure business and the beginning of a strategic relationship with SpaceX.

The deal comes as Qualcomm sees opportunities to apply its technology to changes in wireless infrastructure. Amon cited developments ranging from Open RAN to AI-native technology as opportunities to innovate in a sector that has historically relied on dedicated equipment.

Automotive growth offsets weaker handset performance

The SpaceX agreement was announced alongside Qualcomm’s fourth-quarter and full-year fiscal 2026 results. For the quarter ended September 27, Qualcomm reported GAAP revenue of $10.32 billion, down 8% year-on-year, and non-GAAP revenue of $10.44 billion.

Qualcomm’s QCT semiconductor business generated $9.02 billion in revenue, down 8% year-on-year, while its QTL licensing business recorded $1.30 billion, down 7%.

Performance varied significantly across QCT’s end markets. Handset revenue fell 26% year-on-year to $5.14 billion, reflecting the impact of industry-wide memory dynamics on the global smartphone market. By contrast, automotive revenue increased 89% to $1.99 billion, marking the first time the business had reached $2 billion in quarterly revenue, while IoT revenue grew 4% to $1.89 billion.

Within IoT, Qualcomm’s industrial, networking, and robotics product category grew 20% year-on-year, offset by the impact of memory constraints on consumer products. Combined QCT automotive and IoT revenue increased 36% from the year-earlier period.

The company also reported that it had renewed long-term technology licensing agreements with Apple, Huawei and Transsion. Qualcomm’s chief financial officer Akash Palkhiwala said the agreements left QTL’s revenue run rate and long-term revenue forecast unchanged.

Handset market remains a challenge

Qualcomm expects the handset market to remain challenging. Amon said the company’s planning assumes global handset unit volumes will be flat to down in calendar 2027. Palkhiwala separately said the company was projecting a low-teens to mid-teens decline in the overall handset market across 2025 and 2026, followed by a flat-to-slightly-down market in 2027.

Qualcomm said its China Android handset business had reached a low point in the June quarter and had recorded sequential revenue growth in the September and December quarters. However, the company expects QCT handset revenue to decline by a mid-single-digit percentage sequentially in its first fiscal quarter, as Android growth is offset by the continued ramp-down of Apple product revenue.

For fiscal 2027, Qualcomm expects non-handset revenue across QCT’s automotive, IoT and data-center businesses to grow by more than 60% year-on-year. The company also expects handset revenue to account for less than half of its total revenue during the fiscal year, which Amon described as an important milestone in its diversification plan.