Qualcomm's stock fell more than 6% after hours following its results and guidance. Handset chip sales dropped 26% to $5.14 billion, while automotive and other revenue jumped 89%. Arm beat expectations on revenue and adjusted earnings, but its shares fell after its guidance failed to impress investors.
Qualcomm's stock was down more than 6% after-hours following its results and guidance. Its adjusted earnings per share were $2.17, roughly in line with the $2.16 estimate.
Handset slump tied to memory supply
Qualcomm's handset chip sales dropped 26% from a year earlier to $5.14 billion, short of StreetAccount's $5.21 billion estimate. The article attributes the smartphone slump to a memory supply crunch, as memory suppliers shifted production toward high-bandwidth memory for AI data centers. That shift made mobile memory scarce and raised component and smartphone prices.
Automotive and data center revenue
Qualcomm's automotive and other chip revenue jumped 89% from a year earlier to $1.99 billion, beating the $1.66 billion market estimate. Its custom chip solutions and networking generated $650 million in data center revenue in the fourth quarter.
Arm beats estimates but shares fall
Arm's revenue for the second quarter of fiscal 2027 rose 27% from a year earlier to $1.44 billion, with adjusted EPS of 52 cents. Both figures beat expectations of $1.38 billion and 47 cents. Licensing revenue rose 50% to $773 million, and royalty revenue gained 8% to $670 million. Arm shares nonetheless fell after the chip designer issued revenue guidance that was slightly above consensus. The guidance failed to impress investors who had priced in a higher range amid the AI boom.
