Handset Chip Sales Drop 26%, Sending Qualcomm Shares Down 7% After Hours
QCOM sits 31% above its 52-week low of $121.99 on elevated volume (1.9× avg).
Summary
Qualcomm's fiscal Q4 handset revenue fell 26% to $5.14 billion, missing the $5.25 billion analysts expected, and the stock dropped more than 6% after hours. Total adjusted revenue of $10.44 billion actually beat the $10.11 billion estimate and adjusted EPS of $2.17 edged out $2.16, but the core smartphone business is what investors traded on. The Apple wind-down is now explicit: CEO Cristiano Amon said the fiscal Q1 2027 forecast includes no further Apple sales, and management expects non-handset revenue to fully replace Apple with roughly 60% growth in that business in fiscal 2027. Guidance was mixed — revenue midpoint of $10.8 billion tops the $10.48 billion consensus and chip segment guidance of $9.0-9.6 billion beats $8.88 billion, but the $2.25 EPS midpoint lands below $2.27. The data-center story is the offset: $650 million in expected Q1 data-center sales versus $539.1 million expected, backed by the Amazon deal worth up to $60 billion in chip purchases and the SpaceX Starlink supply agreement signed Wednesday. CFO Akash Palkhiwala said gross margin should return to the 48-50% range by Q2 as chip price increases take hold, with full benefit in the second half of fiscal 2027 — Bernstein's Stacy Rasgon called the margin outlook "lousy" and the flat-2027-smartphone assumption aggressive.
At the time of this announcement, QCOM was trading at $160.25 on NASDAQ in the Technology sector, with a market capitalization of approximately $184.9B. The 52-week trading range was $121.99 to $259.92. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: CNBC TV18.