Qualcomm’s Strong Forecast Overshadowed by Expected Samsung Loss

Qualcomm projected stronger-than-expected quarterly sales and profit on Wednesday, buoyed by a rebound in premium smartphone demand, but its stock slipped in after-hours trading amid concerns over a potential loss of business from Samsung next year.

For the quarter ending in December, the chip designer forecast revenue and adjusted earnings at midpoints of $12.2 billion and $3.40 per share, beating analyst expectations of $11.62 billion and $3.31, according to LSEG data.

However, CEO Cristiano Amon said the company expects to supply about 75% of the modem chips for Samsung’s upcoming Galaxy S26 lineup — down from 100% for the current Galaxy S25 models. The announcement sent Qualcomm shares down 2.7% in extended trading after a 4% rise earlier in the day.

Despite the setback, Amon emphasized that Qualcomm is diversifying beyond smartphones into automotive, laptop, and data center chips, as longtime client Apple moves toward producing its own modems.

He also revealed that Qualcomm is in discussions with a “large hyperscaler” — an AI-focused computing company — following its recent deal with Humain, an AI firm backed by Saudi Arabia’s sovereign wealth fund.

The company’s fiscal fourth-quarter results also outperformed expectations, with $11.27 billion in sales and $3 per share in adjusted profit, compared to estimates of $10.79 billion and $2.88.

Amon said the forecast reflects a surge in demand for high-end smartphones capable of running AI applications, especially in markets like China and India, where consumers are “upgrading from mid-range to premium.”