Qualcomm’s smartphone chip sales miss estimates, shares fall

Qualcomm reported lower-than-expected sales of its smartphone chips for Q4, missing Wall Street estimates. The company's revenue from handset unit, which makes chips for smartphones, declined 26% to US$5.14 billion, dragging the chip segment's revenue down 8% to US$9.02 billion. Adjusted sales in Q4 fell 7% to US$10.44 billion, surpassing estimates of US$10.11 billion.

CEO Cristiano Amon mentioned that Android handset sales had bottomed out but were now showing signs of growth. He also highlighted that the company had prepared for the memory issue early on and was witnessing sequential growth. Qualcomm expects strong growth in its non-handset business, anticipating a 70% year-over-year increase by fiscal 2027, as it gains deals with other customers.

The company's forecast for first-quarter revenue is between US$10.4 billion and US$11.2 billion, exceeding analysts' average estimate of US$10.48 billion. Qualcomm also signed a multi-year 5G deal with SpaceX for its Starlink Mobile network, expecting US$650 million in data-centre sales for the fiscal first quarter.