Qualcomm's smartphone chip sales miss estimates, shares fall
Handset chip revenue fell 26% to $5.14 billion, overshadowing stronger data-center and automotive growth and sending the stock lower, analysts said.
- On Wednesday, November 4, 2026, Qualcomm reported fiscal fourth-quarter revenue of $10.32 billion and adjusted earnings of $2.17 per share, but issued soft first-quarter guidance of $10.4–$11.2 billion in revenue.
- Handset chip revenue fell 26% to $5.14 billion as rising memory costs and supply constraints squeezed the smartphone market; CEO Cristiano Amon also cited Apple's shift toward its own modems.
- Automotive revenue surged 89% to $1.99 billion, while Internet-of-things revenue rose 4% to $1.88 billion, offsetting handset weakness as Qualcomm diversified its revenue streams.
- Management targets $15 billion in annual data-center revenue by fiscal 2029, bolstered by a multi-year agreement with Amazon for custom silicon and AI chips valued at up to $60 billion.
- Qualcomm also signed a multi-year deal to supply radio equipment, baseband units, and software for SpaceX's planned Starlink Mobile network starting in 2027, expanding its cellular infrastructure business beyond smartphones.
64 Articles
64 Articles
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Qualcomm shares 9% slump as weak smartphone chip sales overshadow data-center momentum
Qualcomm's shares dropped significantly in early trading following disappointing smartphone chip sales. The company's largest business segment faced a 26% revenue decline, leading to lower overall chip sales. While Qualcomm's investments in data-center and automotive chips strengthen its growth potential, analysts remain skeptical about immediate earnings. Brokerages have reduced their price targets on Qualcomm's stock after recent results were …
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