SAN FRANCISCO, April 29 - Qualcomm provided guidance for its fiscal third quarter that sits below consensus, saying it expects revenue of $9.2 billion to $10.0 billion and adjusted earnings per share of $2.10 to $2.30. Both ranges come in under analyst forecasts, and the announcement pushed Qualcomm shares down by about 4% in extended trading.
The chip designer cited a broader pullback in consumer electronics demand driven by a surge in memory chip prices. Those higher memory costs have translated into elevated prices for smartphones and personal computers, which in turn have caused some consumers to delay or forgo purchases.
Despite the softer near-term outlook, Qualcomm's chief executive, Cristiano Amon, told Reuters in an interview that company leadership is confident the smartphone market will begin to recover after Qualcomm's fiscal third quarter. "We can now call the bottom," Amon said, noting that the company's licensing business - which exceeded Wall Street expectations - gives it insights into the product and production plans of major handset makers for later in the year.
Analysts and market watchers have pointed to the memory shortage as a key headwind. Counterpoint Research reported that global smartphone shipments fell 6% in the first quarter of the year, and warned that memory supply constraints could persist into late next year. Qualcomm's broad exposure across consumer electronics - through chips for phones, wireless headphones and automotive computing systems - makes its results a useful gauge of demand and supply trends in the sector.
Quarterly and segment performance
For the second quarter, Qualcomm reported revenue of $10.6 billion, which was in line with analyst expectations. Within that total, the company's chip segment generated $9.08 billion in revenue, which missed the consensus figure of $9.21 billion. Management projected third-quarter chip revenue of $7.9 billion to $8.5 billion, a range below the $8.93 billion projected by analysts.
The company also provided third-quarter adjusted earnings guidance of $2.10 to $2.30 per share, versus the $2.45 per share the street was expecting. On the top line, Qualcomm's forecast of $9.2 billion to $10.0 billion compares with consensus revenue of $10.27 billion, according to LSEG data.
Market and geographic impact
The memory shortage appears to have hit some markets harder than others. Qualcomm is likely to see added pressure from the Chinese handset market, where domestic manufacturers have seen sales weaken amid the memory tightness. The company said lower- to mid-tier devices are expected to be more adversely affected than premium devices.
Investors have been weighing the effects of a constrained memory market that is partly driven by demand from AI data centers. Qualcomm's shares have declined roughly 10% year-to-date after an earlier gain of more than 11% in 2025, as market participants reassess the near-term outlook amid supply disruptions and shifting end-market demand.
Capital return and data center ambitions
In an effort to support shareholder returns during a period of softer demand, Qualcomm announced a $20 billion share buyback program last month. The move was positioned as a tool to reassure investors while the company navigates the current demand downturn.
Beyond mobile and consumer electronics, Qualcomm said it is pressing into the data center market and expects to begin shipping products for that segment before the end of the year. Amon described active engagements across three chip categories - central processing units, accelerators for inference, and custom application-specific integrated circuits. "We have engagement on a custom ASIC, which is what we wanted to do when we bought AlphaWave," Amon said, "and now we have a lot of connectivity (intellectual property) that enables us to do that. We’re executing on all three" categories of chips.
Analyst takeaways and near-term outlook
The combination of memory-driven price pressure and resulting consumer pullback has created an uncertain demand environment for devices that incorporate Qualcomm silicon. While licensing strength has offered a degree of visibility into handset OEM plans, the company’s guidance indicates the near-term recovery in device volumes and chip revenue remains tentative.
Qualcomm’s results and guidance will be watched closely as an indicator of broader consumer electronics health, and the company’s push into data center processors and custom ASICs will be monitored for signs of diversification beyond traditional handset-derived revenue.