Qualcomm projected fourth-quarter earnings below Wall Street estimates, warning that revenue from Apple products will fall more sharply than previously anticipated due to supply constraints that will reduce its component share in the next iPhone to well below 20 percent.
The chipmaker expects fiscal fourth-quarter earnings between $2.05 and $2.25 per share, trailing analyst estimates of $2.36, with revenue forecast between $9.7 billion and $10.5 billion. The outlook follows a third quarter in which adjusted profit of $2.21 per share missed expectations of $2.23, even as handset sales of $5.1 billion exceeded forecasts.
Chief Executive Cristiano Amon said the company is passing along significant cost increases through price hikes effective September 1. Qualcomm expects non-handset revenue growth to accelerate beyond 60 percent in fiscal 2027, with data center products targeted to generate $5 billion that year and $15 billion by 2029.