Qualcomm phone chip sales drop 26%, and shares slide after hours
Qualcomm's smartphone chip revenue fell 26% to $5.14 billion last quarter as pricier memory chips pushed up phone prices and cut demand, and its profit forecast came in below Wall Street's estimate. Shares fell 4% to 6% in after-hours trading Wednesday.
AI-assisted · US Brief desk · Sources listed below
What happened
Qualcomm said Wednesday that revenue from its smartphone chips fell 26% from a year earlier to $5.14 billion in its fiscal fourth quarter, short of the roughly $5.2 billion analysts expected, Reuters and CNBC reported. Total adjusted revenue fell 7% to $10.44 billion, which still beat the $10.11 billion analysts expected, and adjusted profit was $2.17 a share, a cent above estimates.
Why it matters
Qualcomm makes the main chips in most Android phones, so its numbers are an early read on phone demand heading into the holidays. The same memory squeeze that hit its sales is pushing up what shoppers pay for new phones.
More context
The forecast: For the current quarter, Qualcomm expects adjusted profit of $2.15 to $2.35 a share. The $2.25 midpoint is below the $2.27 analysts expected, though its revenue range of $10.4 billion to $11.2 billion is above the $10.48 billion estimate, Reuters reported. Shares fell more than 4% in extended trading by Reuters' count and about 6% by CNBC's, after rising about 5% in the regular session.
Why phone chips fell: AI servers are soaking up memory chips, which has raised memory prices and the cost of phones and other electronics, Reuters reported. CNBC reported that handset makers are raising prices, which is hurting demand. Global smartphone shipments fell 20% in the September quarter to a 14-year low, according to Counterpoint Research figures cited by Reuters. Qualcomm raised its own chip prices in September, CNBC reported.
Apple is leaving: Apple is switching to its own modem chips. CEO Cristiano Amon told Reuters the new forecast assumes no further sales to Apple, and said Qualcomm expects business outside phones to replace Apple entirely, with about 60% growth in non-phone revenue in fiscal 2027.
The bright spots: Car chip revenue rose 89% to $1.99 billion, beating the $1.66 billion StreetAccount estimate, CNBC reported. Qualcomm repeated its target of $5 billion in data center revenue in fiscal 2027. "We don't have a demand issue; it's a supply issue," Amon said of that business, according to CNBC. Earlier Wednesday, Qualcomm signed a multiyear deal to supply 5G radio equipment and software for SpaceX's planned Starlink Mobile network starting in 2027, Reuters reported.
How outlets framed it: CNBC led with the weak profit forecast and the memory shortage. Reuters led with the phone chip miss and Apple's exit. The Verge led with Qualcomm's bet on AI data centers as phone sales sink.
What's still unknown: How long memory prices stay high, whether Android sales keep recovering as Amon says they are, and whether Qualcomm's data center business can make up for lost Apple sales on the timeline it has promised.
4 listed sources
- Reuters via The Globe and Mail, Qualcomm's smartphone chip sales miss estimates, shares fall, Nov. 4, 2026
- CNBC, Qualcomm stock drops 6% on weak earnings forecast as memory shortage weighs on smartphone sales, Nov. 4, 2026
- CNBC, Stocks making the biggest moves after hours, Nov. 4, 2026
- The Verge, Qualcomm is betting big on data centers as smartphone sales sink, Nov. 4, 2026
References listed by US Brief; a source count is not a verification score.
Editorial sourcing notes
Results are Qualcomm's adjusted (non-GAAP) figures for its fiscal fourth quarter, which ended in late September, as reported by Reuters and CNBC on Wednesday, Nov. 4. After-hours share moves were reported at more than 4% (Reuters) and about 6% (CNBC) and can change before Thursday's open. Analyst estimates are from LSEG unless noted. Photos are file images.
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