Qualcomm Shares Drop Despite Beating Earnings Estimates Due to Weak Guidance and Mobile Slump
Qualcomm (QCOM) shares experienced significant volatility, falling nearly 10% following its fiscal fourth-quarter earnings report. While the company beat analyst estimates for both revenue ($10.4 billion vs. $10.1 billion expected) and earnings per share ($2.17 vs. $2.16 expected), investor sentiment was soured by disappointing future guidance and a sharp decline in its core mobile business. The handset segment saw revenue plummet 26% to $5.1 billion, reflecting waning smartphone demand and a shrinking relationship with Apple. Although CEO Cristiano Amon highlighted an upcoming pivot toward non-handset revenue—specifically targeting $5 billion in data center revenue for fiscal 2027—the company's near-term outlook remains pressured by rising costs and lower projected revenue guidance.
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Topics: earnings report guidance revenue decline stock price volatility telecom technology
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Part of the story Qualcomm Shares Drop Despite Beating Earnings Estimates Due to Weak Guidance and Mobile Slump (8 articles)