Qualcomm stock drops 6% on weak earnings forecast as memory shortage weighs on smartphone sales — SkimNews
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- Qualcomm posted adjusted EPS of $2.17 versus $2.16 expected and adjusted revenue of $10.44 billion, but its current-quarter forecast of $2.15–$2.35 EPS on $10.4–$11.2 billion in revenue came in lighter than the Street’s $2.27 EPS and $10.48 billion assumptions; shares fell 6% after hours.
- Qualcomm saw handset-chip sales drop 26% to $5.14 billion, below StreetAccount’s $5.21 billion estimate, despite raising prices in September; rising memory costs forced handset makers to raise prices and hurt demand, while adjusted company revenue fell 7% year over year.
- Qualcomm said handset-chip sales were beginning to grow sequentially and Android shipments in China had bottomed, even as it projected the overall handset market would remain flat in 2027.
- Qualcomm generated $650 million in data-center revenue during the quarter, mostly from customization and connectivity work, signed a customer for optical connectivity, engaged a global hyperscaler and expects $5 billion in fiscal 2027; Amon said supply, not demand, was the constraint.
- Qualcomm automotive revenue soared 89% year over year to $1.99 billion, beating StreetAccount’s $1.66 billion estimate.
- Qualcomm announced a Wednesday deal to provide technology for SpaceX’s cellular buildout; its IoT revenue rose 4% year over year to $1.88 billion, slightly above estimates.
- Qualcomm renewed licensing agreements with Apple, Huawei and Transsion; QTL revenue fell 7% to $1.3 billion, in line with estimates, and Amon said the division would maintain its scale.
Why it matters: Smartphone makers face a squeeze between rising memory costs and weaker demand, while Qualcomm absorbed a 26% drop in handset-chip revenue to $5.14 billion even after raising prices in September. Qualcomm’s automotive revenue jumped 89% to $1.99 billion, but the 6% after-hours share decline shows investors still prioritized the handset outlook over its diversification.
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