Qualcomm Earnings Hit by Memory Shortage
Qualcomm earnings showed a Q1 beat but it cut Q2 guidance, blaming a global memory-chip shortage that pressured smartphone demand and hit the stock.
KEY TAKEAWAYS
- Qualcomm reported fiscal Q1 EPS of $3.50, beating the $3.39 consensus.
- It issued Q2 revenue and profit guidance below Wall Street consensus, citing a global memory-chip shortage.
- That outlook signals near-term pressure on smartphone-related revenue and helped explain prior equity weakness.
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Qualcomm earnings beat first-quarter estimates, but on Feb. 4, 2026, the company warned that second-quarter revenue and profit would fall short of Wall Street forecasts. The company attributed the weaker outlook to a global memory-chip shortage that is constraining smartphone customers and pressured the stock.
Quarter Results and Filing
Qualcomm reported fiscal first-quarter 2026 earnings of $3.50 a share, above the $3.39 consensus, with revenue of $12.25 billion. Prior-year first-quarter earnings per share were $3.41. The company posted its earnings release on its investor-relations site and filed an SEC Form 8-K on Feb. 4, 2026, via a Business Wire press release. The filings did not disclose any material regulatory approvals or sanctions.
Guidance Cut Citing Memory Shortage
Qualcomm issued second-quarter revenue and profit guidance below Wall Street consensus, linking the weaker outlook to a global memory chip shortage. The shortage is limiting demand from smartphone customers and prompting tighter inventory management. Smartphone manufacturers buy memory chips separately and pair them with Qualcomm processors and modems. These procurement constraints have reduced their purchases of Qualcomm components.
Multiple sources cited the below-consensus guidance as the main driver of the intraday equity decline. Qualcomm’s stock had fallen more than 10% year-to-date before the earnings report. The company’s weaker near-term outlook tied to the memory shortage signals pressure on its smartphone-related revenue and helps explain the earlier stock weakness. No material regulatory actions or government approvals were reported.
