Qualcomm Earnings Outlook Weakens on Apple, Memory
Qualcomm earnings outlook weakens after July 29 results as Apple revenue falls and a memory supply crunch leaves guidance light, prompting analyst review.
KEY TAKEAWAYS
- Qualcomm flagged a below-estimate profit outlook after Apple-related revenue declined faster than expected.
- Management cited rising costs and a memory supply squeeze that left current-quarter guidance light.
- Automotive revenue growth provided a partial offset to handset weakness but did not eliminate pressure.
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Qualcomm Inc. (QCOM) reported fiscal third-quarter results on July 29, 2026, and flagged a below-estimate profit outlook for the current quarter as Apple-related revenue declined faster than expected and a memory supply squeeze left guidance light.
Soft Near-Term Guidance and Market Reaction
The company posted its earnings release on its investor-relations website at 4:00 p.m. ET and said it would file the report with the Securities and Exchange Commission on Form 8-K. A post-close summary described the quarter’s revenue and earnings per share (EPS) results as mixed relative to expectations.
Qualcomm forecasted fourth-quarter profit below Wall Street estimates, citing a faster-than-anticipated decline in Apple-related revenue. Management pointed to rising costs and an ongoing supply crunch for computer parts, especially memory, as key headwinds. The company warned that price increases were likely as part of its response to these challenges.
Despite revenue for the reported quarter coming roughly in line with analyst expectations, the current-quarter guidance was characterized as light. The company’s outlook reflected caution amid supply constraints and cost pressures.
Estimates, Drivers, and Offsets
Before the earnings release, consensus estimates for the quarter ending June 30, 2026, centered on revenue between $9.67 billion and $9.71 billion and EPS around $2.22 to $2.24. Qualcomm’s prior guidance ranged from $9.2 billion to $10.0 billion in revenue and $2.10 to $2.30 in non-GAAP EPS.
Market commentary attributed the softer outlook mainly to weakness in handset demand, with Apple-related revenue declines as a significant factor. However, automotive revenue growth remained a relative strength, partially offsetting pressure from phones and related products.
Taken together, the company’s guidance and market analysis highlighted handset exposure as the central near-term risk for Qualcomm, while strength in automotive provided some buffer against earnings pressure.
