TLDR
- Qualcomm stock closed at $173.19, up 5.33%, then dropped about 8% after hours.
- Q4 EPS of $2.17 and revenue of $10.32 billion topped estimates.
- Q1 EPS guidance midpoint of $2.25 fell short of the $2.32 analysts wanted.
- Chip-design margin is set to slip to 20% to 22% from 24%.
- Automotive revenue jumped 89% to $2 billion.
Qualcomm (QCOM) stock ended Wednesday’s regular session at $173.19, up $8.76 or 5.33%. That gain vanished after the bell. The stock fell about 8% in after-hours trading, with one quote showing $157.91.
The drop came right after the company posted fiscal fourth-quarter results. The numbers beat expectations, but the outlook did not.
Adjusted earnings came in at $2.17 a share. Wall Street had expected $2.16.
QUALCOMM $QCOM Q4’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $10.44B (Est. $10.11B) 🟢; -7% YoY
🔹 Adj. EPS: $2.17 (Est. $2.16) 🟢; -28% YoY
🔹 GAAP EPS: $1.17Q1 Guide:
🔹 Revenue: $10.4B-$11.2B (Est. $10.48B) 🟡
🔹 Non-GAAP EPS: $2.15-$2.35 (Est. $2.27) 🟡
🔹 GAAP EPS: $1.03-$1.23… pic.twitter.com/LaQN96S0ab— Wall St Engine (@wallstengine) November 4, 2026
Revenue landed at $10.32 billion against a forecast of $10.12 billion. A year ago, the company reported EPS of $3 and revenue of $11.27 billion.
The day had started on a high note. Qualcomm announced a deal to supply SpaceX with its Dragonwing cellular infrastructure platform. The technology will support Starlink as it builds a terrestrial network.
Where the Quarter Beat and Where It Missed
Qualcomm’s QCT segment, which covers handsets and autos, fell 8% from a year ago. It still beat estimates with $9 billion in revenue versus $8.8 billion expected.
Handset revenue dropped 26% to $5.1 billion. Analysts had looked for $5.3 billion.
Autos helped fill the gap. Sales rose 89% to $2 billion, topping the $1.7 billion analysts projected.
Internet-of-things revenue gained 4% to $1.9 billion. The licensing unit, QTL, brought in $1.3 billion.
For the first quarter of fiscal 2027, Qualcomm expects revenue of $10.4 billion to $11.2 billion. The midpoint sits above the $10.6 billion Wall Street was after.
Earnings guidance is where things went sideways. The company sees EPS between $2.15 and $2.35, with a midpoint of $2.25.
The company also guided to a 20% to 22% operating margin in its chip-design segment. That compares with 24% in the fourth quarter.
Qualcomm pointed to higher input costs. It cited wafer fabrication, assembly, test, advanced packaging and memory as pressure points.
The company is raising prices on its own products to offset those costs. The full benefit won’t reach the bottom line until the second half of fiscal 2027.
Smartphone demand is also soft. Counterpoint Research says global smartphone shipments fell 19% in the third quarter.
Apple is another factor. Fewer than 20% of its new phones now carry a Qualcomm modem chip.
Qualcomm reiterated its goal of $5 billion in data center revenue in fiscal 2027. It has also warned that its custom chips will carry a lower gross margin than the rest of the business.
Arm Holdings had its own wild Wednesday. It fell 5.3% in regular trading, then held a 0.6% gain after earnings of 52 cents a share on $1.44 billion in revenue, both above estimates.
Qualcomm also has other recent deals in place. It is working with Anduril on a laptop line called BlueChip and signed a custom chip deal with Amazon in September.
The latest quote showed Qualcomm at $157.91 in overnight trading, down 8.82%.
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