Qualcomm shares tumbled sharply in after-hours trading after the chipmaker posted fiscal third-quarter results that narrowly missed Wall Street earnings expectations.
Qualcomm (QCOM) fell nearly 8% after hours on Wednesday, extending a 4.42% decline during the regular session that left shares closing at $155.68.
The company reported adjusted earnings per share of $2.21, just under the analyst consensus estimate of $2.22, according to figures compiled by LSEG.
Revenue came in at $9.94 billion, ahead of the $9.67 billion analysts had expected, offering investors some relief on the top line.
However, the company’s forward guidance disappointed Wall Street, with management projecting fourth-quarter adjusted EPS between $2.05 and $2.25 against a consensus estimate of $2.36.
Expected fourth-quarter sales of $9.7 billion to $10.5 billion bracketed the $10.02 billion Wall Street consensus, reflecting stable demand but persistent cost inflation across the semiconductor supply chain.
Qualcomm cited broad-based cost increases spanning wafer fabrication, assembly, test, advanced packaging, memory, and other materials as central pressures weighing on its near-term profit margins.
Handset chip sales came in at $5.1 billion, down 20% on an annual basis, with the company saying the decline reflected a bottoming in the China market.
CEO Cristiano Amon pointed to shifting consumer behavior as a key factor, saying “Consumer preference within the premium category is changing towards a preference to the lower end of the premium, as well to last year’s phone, because of the memory price increases.”
Amon announced comprehensive price increases across Qualcomm’s chip product line set to begin September 1, framing the move as a direct response to higher supply costs across the industry.
The CEO categorized the elevated input costs as a temporary disruption, emphasizing that pricing actions and supply chain streamlining would restore margin expansion heading into the next fiscal year.
Qualcomm also disclosed that its Apple modem revenue is expected to decline faster than previously forecast, adding another layer of concern for investors already rattled by the soft guidance.
After-hours trading placed QCOM shares at $148.84, down 4.39% from the closing bell price, leaving the stock roughly 8.6% below Tuesday’s close.
The results underscore broader anxieties gripping the semiconductor sector, where memory price volatility and rising fabrication costs continue to compress margins across the industry heading into the second half of 2026.
