Qualcomm (NasdaqGS:QCOM) Q1 2026 Earnings call February 04, 2026 04:45 PM ET Company ParticipantsAkash Palkhiwala - CFOAlex Rogers - PresidentBen Reitzes - Managing Director and Head of Technology ResearchC.J. Muse - Senior Managing DirectorCristiano Amon - President and CEOMauricio Lopez-Hodoyan - VP of Investor RelationsRoss Seymore - Managing DirectorTimothy Arcuri - Managing DirectorConference Call ParticipantsJoshua Buchalter - Managing Director - Senior Analyst, Semiconductors Equity ResearchSamik Cha ...

Market Overview - The stock market closed mixed, with the Dow up 0.5% (259 points), while the NASDAQ fell 1.5% [1][2] - The S&P 500 was down about 0.5%, but the equal-weighted S&P 500 index closed up nearly 1% at a record high [2][3] - Small-cap indices showed varied performance, with the Russell 2000 down 0.7% and the S&P 600 up 0.9% [3] Sector Performance - The Dow Jones transports surged over 2% for three consecutive days, totaling an 8% increase, a trend not seen since May 2025 [4] - The materials sector led gains, with gold and silver trades up over 2%, followed by energy, which also rose by 2% [5] - The technology sector was the biggest loser, down 2.82%, with significant declines in major tech stocks like AMD (down 17%) and Palantir (down 11%) [5][6] Alphabet's Q4 Earnings - Alphabet reported Q4 operating income of $35.93 billion, slightly below the expected $36.95 billion, with total revenue of $113.83 billion, exceeding the estimate of $111.4 billion [9][10] - Google Cloud revenue was reported at $17.66 billion, surpassing the estimate of $16.2 billion, indicating strong performance in that segment [10][24] - The company projected 2026 capital expenditures between $175 billion and $185 billion, significantly higher than the consensus estimate of $120 billion, leading to a drop in stock price by about 6% in after-hours trading [11][12] Qualcomm's Q1 Results - Qualcomm reported Q1 EPS of $3.50, exceeding estimates of $3.41, with revenue of $12.3 billion, also better than the expected $12.2 billion [34][35] - The outlook for Q2 revenue is projected between $10.2 billion and $11 billion, below the previous estimate of $11.18 billion, due to headwinds from memory shortages in the smartphone market [36][40] - Qualcomm is diversifying its business beyond smartphones, focusing on markets like PC chips and robotics [37][38] Investment Strategies - A neutral stance on equities is maintained, with an underweight position in U.S. stocks compared to international markets, driven by attractive valuations overseas [43][45] - The current market environment shows targeted selling primarily in technology, with a focus on quality investments outside the tech sector [47][48] - Concerns about future earnings growth and valuation in the tech sector, particularly among the Magnificent Seven, are leading to a cautious investment approach [53][56]

Financial Data and Key Metrics Changes - The company reported record revenues of $12.3 billion and non-GAAP earnings per share (EPS) of $3.50 for fiscal Q1 2026, with non-GAAP EPS at the high end of guidance [5][17] - QCT revenues reached a record $10.6 billion, with strong year-over-year growth across automotive and IoT segments [17] - Licensing business revenues were $1.6 billion, with an EBT margin of 77%, driven by higher units and favorable mix [17] Business Line Data and Key Metrics Changes - QCT handset revenues reached a record $7.8 billion, benefiting from recently launched flagship smartphones [17] - QCT IoT revenues grew 9% year-over-year to $1.7 billion, driven by demand across consumer and networking products [17] - QCT Automotive revenues grew to $1.1 billion, up 15% year-over-year, reflecting increased demand for Snapdragon Digital Chassis platforms [17] Market Data and Key Metrics Changes - Global consumer demand for handsets, particularly in the premium and high-tier segments, exceeded expectations, with healthy sell-through observed [5] - The handset industry is expected to face constraints due to memory availability and pricing, particularly DRAM, as suppliers redirect capacity to meet AI data center demand [5][6] Company Strategy and Development Direction - The company is focused on expanding its presence in the premium and high-tier smartphone segments, with a dual flagship product strategy that has seen broad OEM adoption [6][7] - The company is also investing in AI-native smartphones and intelligent wearables, positioning Snapdragon platforms as the choice for the industry [7][8] - In automotive, the company aims to reinforce its technology leadership with multiple design wins and collaborations with major automakers [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the handset business despite near-term challenges related to memory supply and pricing [19] - The company anticipates returning to prior growth trajectories for QCT handset revenues once memory supply normalizes [19] - Management remains optimistic about the long-term growth potential in automotive and IoT, with expectations for continued revenue acceleration [21] Other Important Information - The company completed the acquisition of Alphawave Semi, enhancing its high-speed wire connectivity technologies [15] - The company is actively engaging with leading hyperscalers and cloud service providers to develop data center solutions [14] Q&A Session Summary Question: What factors are driving the weakness in handset outlook beyond memory pricing? - Management indicated that the weakness is entirely related to memory availability, with strong microeconomic indicators and handset demand observed [26][27] Question: Is the automotive revenue growth driven by ADAS wins? - Management confirmed that the automotive pipeline continues to translate into revenue, with new car launches contributing to record revenues [29][30] Question: How is the company managing the memory supply situation? - Management clarified that they do not purchase memory directly but work closely with customers who do, ensuring flexibility with various memory providers [69][70] Question: What is the outlook for the data center business? - Management stated that progress is on track, with positive feedback from engagements with hyperscalers and cloud service providers [35][36] Question: How does the company view the impact of memory shortages on the overall handset market? - Management emphasized that the size of the handset market will be determined by memory availability, with expectations for premium and high-tier segments to remain resilient [40][76]

Supply shortages in the memory market have been a thorn in the side of technology companies, and Qualcomm is feeling the pain as well. The company QCOM on Wednesday pointed to memory constraints as the culprit for its lower-than-expected guidance for the current quarter. ...

Core Insights - Qualcomm reported record quarterly revenue of $12.25 billion for the first quarter, a 5% increase year-over-year, surpassing the Street consensus estimate of $12.18 billion [2] - Adjusted earnings per share were $3.50, exceeding the consensus estimate of $3.40 [2] - The automotive segment also set a record, marking the second consecutive quarter with revenue exceeding $1 billion [3] Revenue Breakdown - QCT revenue reached a record $10.61 billion, up 5% year-over-year [2] - QTL revenue was $1.59 billion, reflecting a 4% year-over-year increase [2] - Revenue by segment included handsets at $7.82 billion (up 3% year-over-year), automotive at $1.10 billion (up 15% year-over-year), and IoT at $1.69 billion (up 9% year-over-year) [6] Future Guidance - For the second quarter, Qualcomm projects revenue between $10.20 billion and $11.0 billion, compared to the Street consensus estimate of $11.11 billion [4] - The company anticipates adjusted earnings per share in the range of $2.45 to $2.65, below the consensus estimate of $2.88 [4] Strategic Moves - Qualcomm completed the acquisition of Alphawave Semi, which is expected to accelerate its expansion into Data Centers [3][4] - The company expressed optimism regarding consumer demand for premium and high-tier smartphones, despite industry-wide memory supply constraints [5]

First Quarter Fiscal 2026 Earnings February 4, 2026 Snapdragon and Qualcomm branded products are products of Qualcomm Technologies, Inc. and/or its subsidiaries. References in this presentation to "Qualcomm" may mean Qualcomm Incorporated, Qualcomm Technologies, Inc., and/or other subsidiaries or business units within the Qualcomm corporate structure, as applicable. Note Regarding Forward-Looking Statements In addition to historical information, this document and the conference call that it accompanies cont ...

Qualcomm - First quarter EPS reported at 350, exceeding expectations by 9 cents, with revenue at $12.25 billion, slightly above the expected $12.2 billion [1] - For Q2, EPS forecasted between 245 and 265, with revenue expected between $10.2 billion and $11 billion, missing the estimate of $11.1 billion due to a memory shortage [2] - Shares dropped over 4.5% following the earnings report, reflecting concerns over guidance and ongoing memory issues [3][4] Alphabet - Google search revenue reported at $63.07 billion, beating expectations of $61.37 billion, while Google services revenue was $95.86 billion, also above the expected $94.9 billion [7] - YouTube ad revenue at $11.38 billion missed the estimate of $11.7 billion, and overall Google ad revenue was $82.28 billion, surpassing expectations [8] - Capex for the quarter significantly higher at $91.45 billion compared to the expected $28 billion, raising concerns about spending discipline [11][19] ARM Holdings - EPS came in at 43 cents, better than the expected 41 cents, with revenue for the fiscal third quarter at $1.24 billion, slightly above the $1.23 billion estimate [31] - Royalty revenue grew by 27% year-over-year to a record $737 million, but licensing revenue missed expectations at $505 million [31] - Guidance for the upcoming quarter forecasts revenue of $1.47 billion, slightly below analyst projections [32] Snap - EPS reported at 3 cents, up from a loss a year earlier, with revenue increasing 10% to $1.72 billion, slightly better than expectations [41] - Daily active users at 474 million, meeting estimates but showing mixed regional performance [42] - Guidance for future revenue slightly below analyst expectations, raising concerns about monetization and competition [44][49]

The semiconductor company logged revenue of $12.25 billion, but said the memory supply shortage will put a damper on its performance in the current quarter. ...

Group 1 - Qualcomm forecasts second-quarter revenue and profit below Wall Street estimates [1] - The company expects a global memory supply shortage to impact mobile phone sales [1]

President and CEO of Qualcomm Cristiano Amon delivers a speech at the Web Summit at Parque das Nacoes in Lisbon, on November 12, 2024.Qualcomm reported fiscal first-quarter earnings on Wednesday that beat expectations, but the company's forecast came up short because of the global memory shortage. Shares sank following the release.Here's how the chipmaker did versus LSEG consensus estimates:EPS: $3.50, adjusted, versus $3.41 expectedRevenue: $12.25 billion, versus $12.21 billion expectedIn the current quart ...