Chipmaker Qualcomm (QCOM.O) delivered a bullish sales and profit outlook for the current quarter, but shares fell after hours as the company warned that its share of Samsung’s next-generation smartphone chips would decline to 75% from 100%.
For the fiscal first quarter ending in December, Qualcomm forecast $12.2 billion in revenue and $3.40 per share in adjusted profit, topping Wall Street expectations. CEO Cristiano Amon said the strong performance reflects consumers shifting toward AI-ready premium smartphones, particularly in emerging markets.
While demand for flagship models lifted Qualcomm’s fourth-quarter revenue to $11.27 billion, the company faces uncertainty as Apple continues transitioning to its in-house modems. Amon confirmed Qualcomm remains in talks with a major AI hyperscaler to expand its data center chip business — part of a broader diversification effort beyond handsets.
The company also noted that its non-Apple revenue grew 18% year-over-year, with handset chip sales rising 14% to $6.96 billion, surpassing estimates. CFO Akash Palkhiwala projected that handset revenue will grow in the “low teens” sequentially next quarter, implying around $7.7 billion in sales.
Despite the promising outlook, analysts said Qualcomm’s reduced role in Samsung’s Galaxy S26 lineup raised investor concerns about its long-term smartphone dominance.
