Qualcomm falls after earnings as handset sales slump despite a small profit beat
Earnings results
- EPS
Adjusted $2.17 vs $2.16 expected · Beat by $0.01 per share
- Revenue
$10.322B vs $10.12B expected · Beat by 2.0%
- Guidance
Q1 sales $10.4–11.2B · Adjusted EPS $2.15–2.35
Earnings and the stock move
Qualcomm released fiscal fourth-quarter and full-year 2026 results after the November 4 close. Adjusted profit and total revenue exceeded the dated analyst benchmarks, and next-quarter revenue guidance was above the cited forecast at its midpoint. Nevertheless, handset-chip sales fell 26%, chip-division pretax margin narrowed to 24% from 29%, and the company expects full pricing-related margin relief only in the second half of fiscal 2027. Those verified pressures frame the after-close decline; treating the results as a revenue-guidance miss would be inaccurate. Automotive growth and a reiterated data-center target offer a counterweight, with execution still to be demonstrated.
Q4 fiscal 2026 ended September 27 earnings recap
Qualcomm fell after earnings as smartphone-chip sales shrank, despite a small profit beat. The price used for this comparison was down about 4.6% in after-hours trading on November 4 versus that day’s regular close.
- Fourth-quarter adjusted EPS, or profit per share, was $2.17 versus $2.16 expected. EPS under standard accounting rules was $1.17; total revenue of $10.32 billion beat the $10.12 billion forecast by about 2%.
- Handset-chip sales fell 26% from a year earlier to $5.14 billion. That matters because phones still supply most of the chip division’s sales, leaving Qualcomm exposed to weak device demand and customers building their own chips.
- Automotive-chip revenue rose 89% to $1.99 billion, while connected-device sales grew 4% to $1.89 billion. These businesses help diversify sales, but have not fully offset the handset decline.
- For the first quarter of fiscal 2027, Qualcomm expects $10.4–11.2 billion in revenue and $2.15–2.35 in adjusted EPS. The revenue midpoint is above the $10.6 billion forecast, so this was not a revenue-outlook miss.
- Rising chip-production and material costs remain a margin risk. Qualcomm expects the full benefit of its price increases to reach chip gross margins in the second half of fiscal 2027, leaving investors waiting for clearer profit relief.
- Management reaffirmed a $5 billion data-center revenue target for fiscal 2027. Turning AI-chip collaborations into shipments and cash flow is the next test; the target is not revenue already earned.
Watch handset demand, chip margins and the data-center ramp. The November 4 regular close was below the 20-day and 50-day moving averages, and the later earnings decline adds risk to the recovery.
Financials and technicals
Charts through Nov 4, 2026. The session move above may reflect later news.
Technical setup and risks
November 4 regular close: $173.19, up 5.3% versus the prior close, before the earnings release. The 20-day simple moving average was about $174.93 and the 50-day about $178.23. RSI, a momentum measure, was 47.8; ATR, a typical daily range measure, was $7.72. Support near $160.4–162.8 reflects the October 30 and November 2–4 lows. Resistance near $174.9–178.2 overlaps the moving averages and earlier October trading. A recovery above that band would strengthen the chart; losing support would weaken it. These are approximate areas, not promised turning points. After-close prices are separate from the completed candles.
After-hours move is measured versus the same-day regular close AI-assisted research with source and calculation checks. Prices may be delayed. Technical charts use the stated completed session, which can precede the quoted intraday move. Educational information; investing involves risk.