Why Qualcomm Stock Is Plunging in After-Hours Trading

Core Viewpoint - Qualcomm's recent financial results exceeded analyst expectations, but the company's near-term outlook has disappointed investors, leading to a significant drop in stock price [1] Financial Performance - In Q1 2026, Qualcomm reported a record revenue of $12.3 billion and an adjusted diluted EPS of $3.50, marking a 3% year-over-year increase [3] - For Q2 2026, Qualcomm forecasts revenue between $10.2 billion and $11 billion, with adjusted EPS ranging from $2.45 to $2.65, which is below analyst consensus expectations of $11.02 billion in revenue and $2.87 in adjusted EPS [2] Market Dynamics - Qualcomm highlighted challenges in the memory supply chain due to high demand from data center operators driven by artificial intelligence growth, leading to uncertainty in memory pricing for handset OEMs [2] - The company noted that several OEMs, particularly in China, are reducing their handset production plans and channel inventory in response to these market dynamics [2] Long-term Outlook - Despite the current challenges, Qualcomm's management remains optimistic about meeting its fiscal 2029 financial targets, including automotive business revenue projected to reach $8 billion (up from $2.4 billion in fiscal 2024) and Internet of Things business revenue expected to hit $14 billion (up from $5.4 billion in fiscal 2024) [4]