Qualcomm reported fiscal first-quarter earnings that beat expectations, but the forecast fell short due to the global memory shortage, causing shares to drop 10% in extended trading. In the current quarter, Qualcomm expects adjusted EPS between $2.45 and $2.65 on revenue of $10.2 billion to $11 billion. The company’s smartphone customers are monitoring memory availability closely. Qualcomm CEO Cristiano Amon said memory shortage will define the size of the mobile market.

During the quarter, Qualcomm reported $7.82 billion in handset sales, a 3% increase year-over-year, with overall revenue growing by 5%. The company’s IoT group saw a 9% increase to $1.69 billion in sales, while the automotive business rose 15% to $1.1 billion. Net income was $3 billion, or $2.78 per share. QTL revenue was $1.59 billion.

Qualcomm executives attributed the guidance gap to the memory issue, stating that smartphone demand is high, but supply may be impacted. The company anticipates potential issues with smartphone supply and expects customers to focus on higher-tier devices capable of absorbing memory price increases. Qualcomm remains competitive in premium tier handsets amidst industry-wide memory shortage affecting consumer electronics.

Read more at CNBC: Qualcomm (QCOM) Q1 2026 earnings