Qualcomm Beats Expectations and Forecasts Stronger Sales as Phones Slow

Qualcomm beat Wall Street expectations in its fiscal fourth quarter of 2026, and it forecast stronger sales for the next quarter, even though its phone chip sales fell sharply.

What happened

Qualcomm reported adjusted profit of $2.17 per share for the quarter ended in September 2026, compared with an expected $2.16 per share, according to Reuters and Zacks. Adjusted sales fell 7 percent from a year earlier to $10.44 billion, but that was still above the expected $10.11 billion.

The weak spot was phones. Revenue from Qualcomm’s handset unit, which makes chips for smartphones, fell 26 percent to $5.14 billion. That pulled total chip segment revenue down 8 percent to $9.02 billion. Reuters reported that global smartphone shipments fell 20 percent in the September quarter to a 14 year low, and that higher memory chip prices raised costs for consumer electronics.

The stronger part of the story was the forecast. For the first quarter of fiscal 2027, Qualcomm expects revenue between $10.4 billion and $11.2 billion. The middle of that range is above the average analyst estimate of $10.48 billion, according to data compiled by LSEG and reported by Reuters. It also expects chip segment sales between $9 billion and $9.6 billion, above estimates of $8.88 billion. Expected adjusted profit of $2.15 to $2.35 per share was slightly below the $2.27 estimate, so the sales forecast was the clearer positive.

Chief Executive Cristiano Amon told Reuters that Android handset sales are ticking upward again, and that growth outside phones is helping. He said Qualcomm expects its non-handset business to replace Apple entirely, with 60 percent year over year growth in that business in fiscal 2027, after Apple moved to its own modem chips. The forecast includes no further sales from Apple.

Reuters also reported two other steps that point beyond phones. In September, Amazon agreed to buy up to $60 billion of Qualcomm AI chips and related data centre products. Earlier on November 4, Qualcomm signed a multi year 5G deal to supply equipment and software for SpaceX’s planned Starlink Mobile network starting in 2027. Qualcomm is targeting $15 billion in annual data centre revenue by fiscal 2029.

Why it matters for beginners

A single company result can look confusing when one part falls and another part grows. Qualcomm shows why it helps to split a business into parts. Phones are still its largest chip market, so a weak phone market hurts. But cars, connected devices, and data centre chips are now large enough to change the outlook, at least in the company’s forecast.

It also shows why a forecast can matter as much as the past quarter. The past quarter beat estimates by a small margin. The next quarter sales forecast, above estimates, is what signalled that management expects the non-phone parts to keep growing.

For beginners, this is also a reminder about concentration risk. A company that depends heavily on one product, one customer, or one market can be hit hard when that market slows. Spreading risk is one reason many beginners start by learning about baskets of investments, as explained in our guide to what an ETF is and how it differs from a stock.

What to watch next

First, watch whether the non-phone growth actually arrives in the next quarter, and whether phone sales stabilise as Android sales tick up. Second, watch memory chip prices, because higher memory costs squeezed phone chip makers in the September quarter. Third, watch the data centre plan, including when revenue from the new custom chip programmes starts and how fast it ramps up next year. A forecast is a plan, not a result, so the next report will test it.

FAQ

What does Qualcomm make?

Qualcomm mainly makes chips and related technology for phones, cars, connected devices, and increasingly for data centres. Its handset unit makes chips for smartphones.

Why did phone chip sales fall?

Reuters linked the fall to a weak smartphone market, with global shipments down 20 percent in the September quarter, and to higher memory chip prices that raised costs for consumer electronics makers.

Did Qualcomm beat expectations?

Yes, on both headline measures. Adjusted profit was $2.17 per share against an expected $2.16, and adjusted sales were $10.44 billion against an expected $10.11 billion, according to Reuters and Zacks.

What is the next quarter forecast?

Qualcomm expects first quarter fiscal 2027 revenue of $10.4 billion to $11.2 billion, with a midpoint above the $10.48 billion average estimate. Expected adjusted profit is $2.15 to $2.35 per share, compared with an estimate of $2.27.

Does this mean Qualcomm stock will rise?

Not necessarily. A beat and a strong sales forecast are positive signals, but the share price also depends on the profit forecast, market conditions, and how investors judge the risks. This article does not recommend buying or selling any stock.

Sources

• Reuters, via SRN News, Qualcomm forecasts upbeat sales on strength in non-smartphone segments, November 4, 2026: https://srnnews.com/qualcomm-forecasts-upbeat-sales-on-strength-in-non-smartphone-segments/
• Zacks, Qualcomm tops Q4 earnings and revenue estimates, November 4, 2026: https://www.zacks.com/stock/news/3023448/qualcomm-qcom-tops-q4-earnings-and-revenue-estimates

This article is for general information and education only. It is not legal or financial advice.