Qualcomm Guides Q4 Profit Below Estimates, Warns Apple Revenue Drop Accelerating
QCOM sits 28% above its 52-week low of $121.99.
Summary
Qualcomm reported a decline in Q3 profit, dented by higher costs, and issued Q4 adjusted EPS guidance of $2.05-$2.25, well below the $2.36 consensus. The company warned that Apple revenue will decline faster than expected as supply constraints slash its iPhone component share below 20%. CEO Amon cited broad cost inflation and plans price hikes from September 1 to restore margins, but the near-term margin hit is real. Q3 revenue of $9.95B beat estimates, but the weak outlook overshadows it. This follows positive diversification headlines including data center wins with Meta and Microsoft and a $20B buyback, though the core handset business is deteriorating faster than anticipated. The pivot to non-smartphone chips is accelerating, with the majority of chip sales expected from other categories by fiscal 2027, but Apple exposure remains a key risk.
At the time of this announcement, QCOM was trading at $156.30 on NASDAQ in the Technology sector, with a market capitalization of approximately $164.7B. 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 9 out of 10. Source: Reuters.