- Qualcomm revenue rose 5.5% q/q and fell 8.1% y/y to $10.3B in the Sep qtr, with semi revenue down 8% y/y as Apple declined.
- Qualcomm guided QCT revenue to $9.0B-9.6B in the Dec qtr at 20-22% EBT; data center dilutes QCT gross margin by 3 pp but is accretive at the operating margin level.
- Data center revenue is guided at $650M for the Dec qtr as custom chips start shipping to two hyperscalers.
- Data center run-rate is $7B annualised exiting FY27, with data center revenue expected to grow q/q through FY27; most FY27 revenue comes from custom AI accelerators for two hyperscalers, including AWS.
- Pipeline includes a second optical connectivity customer, a third accelerator customer, advanced talks on another custom chip for FY28-29, and two major AI250/HBC prospects; the Dragonfly C1000 CPU is on schedule for Meta.