Qualcomm forecasts revenue and profit below Wall Street estimates

Qualcomm forecast second-quarter revenue and profit below Wall Street estimates, saying a global memory chip shortage is reducing smartphone sales. The company also reported its most recent fiscal quarter's revenue and adjusted profit slightly above analyst estimates.

Qualcomm announced second-quarter revenue and profit guidance that fell short of Wall Street estimates and attributed the shortfall to a global memory chip shortage affecting smartphone customers. The company said original equipment manufacturers, particularly in China, are lowering inventory as they adjust to limited memory supply. Qualcomm reported its fiscal first-quarter revenue and adjusted profit modestly above analyst forecasts. Shares were reported down about 6.7% in after-hours trading following the announcement. Key details: - Qualcomm forecast second-quarter revenue of US$10.2 billion to US$11.0 billion, versus analysts' average estimate of US$11.12 billion. - The company projected adjusted quarterly earnings of US$2.45 to US$2.65 per share, compared with analysts' estimate of US$2.89. - CEO Cristiano Amon said the forecast miss was due to a memory chip shortage hitting the company's smartphone customers and noted OEMs are reducing inventories to adjust. - For the fiscal quarter ended Dec. 28, 2025, Qualcomm reported revenue of US$12.25 billion and adjusted profit of US$3.50 per share, both slightly above consensus estimates. - Within chip sales, smartphone chip revenue was US$7.82 billion, automotive was US$1.10 billion, and licensing revenue was US$1.59 billion. Summary: Qualcomm tied its revenue and profit guidance shortfall to a global memory shortage that it said is constraining smartphone sales and prompting OEM inventory reductions, and the company reported recent-quarter results modestly above estimates. Undetermined at this time.