Qualcomm's record revenue fails to impress investors
Qualcomm just posted its highest-ever quarterly revenue—$12.3 billion for fiscal Q1 2026 (quarter ended Dec. 28, 2025) and earnings per share beat expectations.
But investors weren't impressed: the stock slid 9% after hours and is down 11% this year.
The company's outlook for next quarter fell short
Even with strong sales, Qualcomm's outlook for next quarter fell short of what analysts hoped for.
The company expects lower revenue and profits ahead, mainly because memory shortages—thanks to booming demand from AI data centers—are slowing down phone production.
Analyst Bob O'Donnell said the company will be impacted "for the next several quarters."
Qualcomm's growth came from its chip business
Most of Qualcomm's growth came from its chip business (QCT), with big gains in smartphones, cars, and smart devices.
To tackle future challenges, Qualcomm has made moves into data-center technology.
Still, ongoing supply chain headaches are making investors nervous about what's next.