Qualcomm revenue hits record high, but earnings outlook remains flat, signs indicate unstable demand for mobile phone chips, stock price drops nearly 10% after hours | Earnings Report Insights

SnapshotLaborer · 2026-02-04T23:45:49+00:00

Qualcomm Q1 FY2026 revenue reached $12.252 billion, up 5% year-over-year, setting a quarterly record, primarily driven by chip business. Mobile phone revenue grew steadily, with strong performance in automotive and IoT revenue. Looking ahead to Q2, the company's guidance is conservative; affected by tight memory supply, the stock price dropped nearly 10% after hours.

SnapshotLaborer

2026-02-04 23:45:49

Abstract generation in progress

On February 4th, after the US stock market closed, Qualcomm announced its revenue for the first quarter of fiscal year 2026, reaching $12.252 billion, a year-over-year increase of 5%, setting a quarterly record. Non-GAAP earnings per share were $3.50, up 3% year-over-year, also at the high end of the company’s previous guidance range.

The core of the growth still comes from the chip business QCT. QCT’s quarterly revenue was $10.613 billion, a 5% increase year-over-year, setting a new record. Mobile phone revenue was $7.824 billion, up 3% year-over-year, continuing moderate growth.

More impressive are the two “de-phonemization” curves. Automotive revenue was $1.101 billion, a 15% increase year-over-year, marking the second consecutive quarter to surpass $1 billion. IoT revenue was $1.688 billion, up 9% year-over-year, maintaining steady growth.

Looking ahead to the next quarter, the company’s guidance is notably conservative. For the second quarter of fiscal year 2026, revenue is expected to be between $10.2 billion and $11.0 billion, with non-GAAP earnings per share of $2.45 to $2.65.

Management mainly attributes variables to tighter memory supply and rising prices. AI data centers are increasing storage demand, squeezing supply and costs for mobile OEMs, with some customers reducing inventory buildup and channel stock, thereby dragging down short-term chip orders.

After the earnings release, Qualcomm’s stock price dropped nearly 10% in after-hours trading.

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