Qualcomm's revenue hits a record high, but the earnings outlook is lukewarm, indicating unstable demand for mobile chips, with after-hours stock price dropping nearly 10% | Earnings Report Insights
Qualcomm's revenue reached USD 12.252 billion in the first quarter of fiscal year 2026, a year-on-year increase of 5%, setting a quarterly record. Despite strong performance in the chip business (QCT) and growth in automotive and IoT revenues, the company has a cautious outlook for the next quarter, expecting revenue to be between USD 10.2 billion and USD 11 billion. Due to tight supply of memory chips, demand for mobile chips has been unstable, causing the stock price to plummet nearly 10% in after-hours trading
On February 4th, after the US stock market closed, Qualcomm announced its revenue for the first quarter of fiscal year 2026, recording USD 12.252 billion, a year-on-year increase of 5%, setting a quarterly record. The non-GAAP earnings per share were USD 3.50, up 3% year-on-year, also at the upper end of the company's previous guidance range.
The core growth still comes from the chip business QCT. QCT's quarterly revenue was USD 10.613 billion, a year-on-year increase of 5%, setting a new record. Among them, mobile revenue was USD 7.824 billion, a year-on-year increase of 3%, continuing moderate growth.
Even more impressive are the two curves of "de-mobileization." Automotive revenue was USD 1.101 billion, a year-on-year increase of 15%, standing above the USD 1 billion mark for the second consecutive quarter. IoT revenue was USD 1.688 billion, a year-on-year increase of 9%, maintaining stability.
Looking ahead to the next quarter, the guidance provided by the company is noticeably conservative. Revenue for the second quarter of fiscal year 2026 is expected to be between USD 10.2 billion and USD 11 billion, with non-GAAP earnings per share expected to be between USD 2.45 and USD 2.65.
Management pointed to the main variables being tight memory supply and rising prices. AI data centers are raising demand for storage, squeezing supply and cost space for mobile OEMs, leading some customers to reduce inventory and channel stock, thereby dragging down short-term chip orders.
After the earnings announcement, Qualcomm's stock price fell nearly 10% in after-hours trading.
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