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Qualcomm's smartphone chip sales miss estimates, shares fall
Qualcomm said rising memory costs and weaker smartphone demand hurt results, while its handset chip sales dropped 26% and the stock fell in extended trading.
- On Wednesday, Qualcomm reported adjusted earnings of $2.17 per share on $10.32 billion in revenue, beating LSEG estimates. The stock slid in extended trading after the company guided to $2.15–$2.35 EPS on $10.4–$11.2 billion revenue for the current quarter.
- Handset chip sales plunged 26% to $5.14 billion, trailing StreetAccount estimates of $5.21 billion. Rising memory costs forced smartphone makers to raise prices, pressuring consumer demand in the market.
- CEO Cristiano Amon attributed the decline to supply constraints rather than weak demand, stating, "We don't have a demand issue; it's a supply issue." The company had raised prices in September to manage costs.
- Automotive revenue soared 89% to $1.99 billion, while IoT revenue increased 4% to $1.88 billion. Qualcomm targets $5 billion in data center revenue for fiscal 2027, diversifying beyond handsets.
- The QTL division renewed licensing agreements with Apple, Huawei, and Transsion, maintaining stability. Separately, Qualcomm announced a deal on Wednesday to supply technology for SpaceX's Starlink Mobile cellular network starting in 2027.
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Watch Qualcomm to Shift Away From Handsets, CFRA's Zino Says
CFRA Research Senior VP and Equity Analyst Angelo Zino discusses Qualcomm’s latest quarterly results and outlook. Speaking on "Bloomberg The Close," Zino expects a lower gross margin profile as Qualcomm shifts away from handsets.
·New York, United States
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Qualcomm's smartphone chip sales miss estimates, shares fall
·London, United Kingdom
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Coverage Details
Total News Sources12
Leaning Left1Leaning Right1Center7Last UpdatedBias Distribution78% Center
Bias Distribution
- 78% of the sources are Center
78% Center
11%
C 78%
11%
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