Overview
- Qualcomm slightly beat fourth-quarter estimates but on Thursday gave first-quarter guidance with an EPS midpoint of $2.25 that fell short of analyst forecasts and sent its stock down about 8%–9% in after‑hours and premarket trading.
- The company lowered its chip-design (QCT) operating‑margin forecast to 20%–22% from 24% and said higher wafer fabrication, assembly and memory costs are the primary drivers of the cut.
- Handset chip revenue plunged about 26% year‑over‑year to roughly $5.14 billion while automotive sales surged about 89% to $2 billion, showing diversification gains that have not yet offset handset weakness.
- Qualcomm is raising product prices and pursuing data‑center and custom‑chip deals to rebuild growth but warned that custom chips carry lower margins and that price relief will materially show only in the second half of fiscal 2027.
- Analysts have trimmed ratings and price targets after the report and a Nov. 6 filing that showed Alphabet held about 3 million Qualcomm shares provided a modest premarket lift but did not change near‑term investor concern over earnings and input‑cost pressure.