European Investor
30 Jul 2026, 09:30
Qualcomm Stock Falls 4.8% Premarket as Smartphone Weakness Overshadows Automotive Growth
Qualcomm (NASDAQ: QCOM) shares fell 4.8% in premarket trading on Thursday after the chipmaker reported lower fiscal third-quarter earnings and revenue, as continued weakness in its smartphone business outweighed strong growth in its automotive and IoT segments.
Revenue declined 4% year-over-year to $9.95 billion, landing near the high end of the company's guidance. GAAP earnings per share fell 23% to $1.87, while non-GAAP EPS decreased 20% to $2.21. CEO Cristiano Amon said the company delivered solid execution despite a challenging memory and supply environment and reaffirmed Qualcomm's long-term diversification strategy.
Handset Business Remains Under Pressure
The biggest drag on results continued to be Qualcomm's core handset business. QCT handset revenue dropped 20% year-over-year to $5.09 billion, driving a 5% decline in total QCT revenue to $8.50 billion.
The weakness was partially offset by continued momentum outside smartphones. Automotive revenue surged 61% to $1.59 billion, marking the company's 23rd consecutive quarter of double-digit growth, while IoT revenue increased 9% to $1.83 billion. Qualcomm also recently completed its acquisition of Modular Inc., expanding its software capabilities for generative and agentic AI applications.
Guidance Meets Expectations
For the fiscal fourth quarter, Qualcomm forecast revenue between $9.7 billion and $10.5 billion and non-GAAP earnings per share of $2.05 to $2.25. The company also noted that higher semiconductor input costs, including wafer fabrication, advanced packaging and memory, are expected to gradually be reflected in pricing, supporting margins over time.
What to Watch
The premarket decline suggests investors remain focused on the pace of recovery in Qualcomm's smartphone business despite continued strength in automotive, IoT and AI-related opportunities. Going forward, the market will closely monitor handset demand, automotive expansion and whether accelerating non-handset revenue growth can offset ongoing weakness in the mobile market.
Qualcomm (NASDAQ: QCOM) shares fell 4.8% in premarket trading on Thursday after the chipmaker reported lower fiscal third-quarter earnings and revenue, as continued weakness in its smartphone business outweighed strong growth in its automotive and IoT segments.
Revenue declined 4% year-over-year to $9.95 billion, landing near the high end of the company's guidance. GAAP earnings per share fell 23% to $1.87, while non-GAAP EPS decreased 20% to $2.21. CEO Cristiano Amon said the company delivered solid execution despite a challenging memory and supply environment and reaffirmed Qualcomm's long-term diversification strategy.
Handset Business Remains Under Pressure
The biggest drag on results continued to be Qualcomm's core handset business. QCT handset revenue dropped 20% year-over-year to $5.09 billion, driving a 5% decline in total QCT revenue to $8.50 billion.
The weakness was partially offset by continued momentum outside smartphones. Automotive revenue surged 61% to $1.59 billion, marking the company's 23rd consecutive quarter of double-digit growth, while IoT revenue increased 9% to $1.83 billion. Qualcomm also recently completed its acquisition of Modular Inc., expanding its software capabilities for generative and agentic AI applications.
Guidance Meets Expectations
For the fiscal fourth quarter, Qualcomm forecast revenue between $9.7 billion and $10.5 billion and non-GAAP earnings per share of $2.05 to $2.25. The company also noted that higher semiconductor input costs, including wafer fabrication, advanced packaging and memory, are expected to gradually be reflected in pricing, supporting margins over time.
What to Watch
The premarket decline suggests investors remain focused on the pace of recovery in Qualcomm's smartphone business despite continued strength in automotive, IoT and AI-related opportunities. Going forward, the market will closely monitor handset demand, automotive expansion and whether accelerating non-handset revenue growth can offset ongoing weakness in the mobile market.
