Qualcomm stock sinks 7 % after weak guidance and revenue miss

Qualcomm misses targets, stock tumbles 7 %

Qualcomm posted fourth-quarter earnings of $2.17 per share on revenue of $10.44 billion, up 8 % from a year earlier. Wall Street had expected $10.48 billion.

Shares slid 7 % in extended trading after the company forecast current-quarter revenue of $10.4 billion to $11.2 billion—below the $10.48 billion analysts predicted. Earnings guidance of $2.15 to $2.35 per share also trailed estimates.

Smartphone chip sales plunge 26 %, missing estimates

Smartphone chips remain Qualcomm’s biggest business, but sales fell 26 % to $5.14 billion in the quarter. Analysts had looked for $5.21 billion.

The drop was driven by weaker demand, rising memory-chip prices, and declining revenue from Apple. Sales of Android handsets did tick up sequentially, especially in China.

Qualcomm now expects the smartphone market to stay flat through 2027.

Automotive and IoT revenues rise, cushioning the drop

Qualcomm’s automotive division surged 89 % year-over-year to $1.99 billion, beating Wall Street’s $1.66 billion forecast.

The Internet of Things segment climbed 4 % to $1.88 billion.

Both gains helped cushion the blow from weaker smartphone sales, but investors remained focused on the company’s softer outlook.

Qualcomm chases AI data-center growth amid supply limits

Qualcomm is betting on AI data-center infrastructure, targeting $5 billion in revenue by the end of fiscal 2027 and $15 billion by 2029.

It booked $650 million in data-center revenue this quarter, driven by customization and connectivity deals. CEO Cristiano Amon said supply—not demand—is the current bottleneck.

Recent wins include a September agreement that lets Amazon buy up to $60 billion of Qualcomm’s AI chips. The company also signed a deal to supply optical-connectivity chips to an unnamed global hyperscaler.

Licensing revenue slips despite fresh deals with Apple, Huawei

Qualcomm renewed licensing deals with Apple, Huawei, and Transsion, yet revenue from its QTL segment fell 7 % to $1.3 billion.

The company also inked a multi-year 5G deal with SpaceX, supplying radio equipment, baseband units, and software for the Starlink Mobile network starting in 2027.

Arm tops estimates but stock dips on cautious outlook

Arm Holdings reported adjusted earnings of 52 cents per share on revenue of $1.44 billion. Both numbers beat Wall Street’s targets of 48 cents and $1.38 billion.

Royalties in Arm’s data-center business doubled year-over-year, driving growth.

Still, the stock dropped 2 % after hours when Arm guided current-quarter earnings to 56 cents per share on $1.54 billion in revenue—slightly below what some investors hoped.

GlobalFoundries beats forecasts, stock stays flat

GlobalFoundries earned 53 cents per share on revenue of $1.9 billion, up 12 % from a year earlier. Analysts had expected 51 cents and $1.89 billion.

The results narrowly beat forecasts, yet the stock finished flat after hours—mirroring broader investor unease about semiconductor growth.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Qualcomm’s weak guidance exposes the gap between its AI ambitions and today’s sluggish smartphone market—leaving investors to weigh long-term promises against near-term disappointments.

Key takeaways

• Qualcomm’s stock plunged 7 % after missing revenue estimates and issuing softer-than-expected guidance, overshadowing gains in automotive and IoT.
• Smartphone chip sales tumbled 26 % year-over-year, dragged down by softer demand and lower Apple-related revenue.
• Qualcomm is targeting $5 billion in AI data-center revenue by fiscal 2027, but supply constraints still limit near-term growth.
• Arm and GlobalFoundries beat quarterly expectations, yet their stocks barely budged—signaling persistent investor caution on semiconductor stocks.

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