Core Viewpoint - Qualcomm's Q1 FY2026 earnings report revealed record revenue but disappointing guidance for Q2 due to global memory chip shortages, leading to a significant drop in stock price [1] Group 1: Earnings Report - Qualcomm reported Q1 FY2026 revenue of $12.25 billion, a 5% year-over-year increase, and adjusted earnings per share of $3.50, both exceeding market expectations [3] - The Q2 revenue guidance was set at $10.2 billion to $11 billion (midpoint $10.6 billion), below analyst expectations of $11.11 billion, with adjusted EPS guidance of $2.45 to $2.65 also falling short of the anticipated $2.89 [3] - The management attributed the lowered guidance to global memory shortages, which have led to data center demand crowding out smartphone memory capacity, prompting clients to adjust their inventory strategies [3] Group 2: Stock Performance - Following the earnings report, Qualcomm's stock price dropped significantly, falling 8.46% to $136.30 on February 5, with trading volume surging to $4.125 billion [2] - The stock price stabilized in the following days, closing at $140.09 on February 10, but still reflecting a cumulative decline of 4.82% over the past five days [2] - The semiconductor sector experienced a slight decline of 0.78% during the same period, indicating overall industry pressure [2] Group 3: Business Segments - Revenue from the mobile segment was $7.82 billion, a 3% year-over-year increase, while the automotive segment generated $1.1 billion, up 15%, and the IoT segment brought in $1.69 billion, a 9% increase [3] - The diversified business segments helped to partially offset the pressures faced in the mobile business [3]