Key facts
- Qualcomm forecast first-quarter fiscal 2027 revenue of $10.4 billion to $11.2 billion, above the $10.48 billion LSEG estimate.
- Qualcomm expects chip segment sales of $9 billion to $9.6 billion, above estimates of $8.88 billion.
- Adjusted profit is forecast at $2.15 to $2.35 per share, against estimates of $2.27.
- Fourth-quarter adjusted sales fell 7% to $10.44 billion, beating the $10.11 billion estimate.
- Handset revenue fell 26% to $5.14 billion in the fourth quarter, below the $5.25 billion Visible Alpha estimate.
- CEO Cristiano Amon said the forecast includes no further Apple sales and non-handset revenue should replace Apple entirely.
Qualcomm forecast first-quarter fiscal 2027 revenue of $10.4 billion to $11.2 billion on November 4, 2026, the midpoint of which is above analysts' average estimate of $10.48 billion compiled by LSEG. The chipmaker said it expects chip segment sales of $9 billion to $9.6 billion, above estimates of $8.88 billion, and adjusted profit of $2.15 to $2.35 per share against estimates of $2.27.
CEO Cristiano Amon told Reuters the forecast includes no further sales to Apple and that Qualcomm expects its non-handset business to replace Apple entirely, with 60% year-over-year growth in that segment in fiscal 2027. He said design wins are up 70% year over year in fiscal 2027 with Apple out of the model, and that Android handset sales are rising again. Qualcomm has warned of a faster-than-expected decline in sales to the iPhone maker as Apple moves to its own modem chips.
Adjusted sales in the fourth quarter fell 7% to $10.44 billion, beating estimates of $10.11 billion, while adjusted profit was $2.17 per share against estimates of $2.16. Handset revenue fell 26% to $5.14 billion, dragging chip segment revenue down 8% to $9.02 billion; analysts polled by Visible Alpha expected handset revenue of $5.25 billion.
A September agreement lets Amazon buy up to $60 billion of Qualcomm's AI chips and related data-center products, adding to a client roster that includes Microsoft and Meta Platforms. Qualcomm has said revenue from two custom chip programs with hyperscalers would begin in the current quarter ahead of a ramp-up of its AI accelerator products next year, targeting $15 billion in annual data-center revenue by fiscal 2029. Earlier on November 4, it signed a multi-year 5G deal to supply radio equipment, baseband units and software for SpaceX's planned nationwide Starlink Mobile network starting in 2027.
Global smartphone shipments fell 20% in the September quarter to a 14-year low, according to Counterpoint Research, as demand for high-bandwidth memory for AI servers pushed up memory chip prices and raised costs for smartphone processor designers such as Qualcomm.