Qualcomm Forecasts Strong Quarter but Expects Reduced Samsung Modem Share

Chip designer Qualcomm issued a bullish earnings projection on Wednesday, pointing to a recovery in premium smartphone demand — yet investors were cautious after the company disclosed it will lose some Samsung modem volume next year.

For the quarter ending in December, Qualcomm said it expects about $12.2 billion in revenue and $3.40 in adjusted earnings per share, topping Wall Street forecasts of $11.62 billion and $3.31 per share, according to LSEG. The outlook reflects stronger global demand for high-end phones capable of running AI-enabled features.

Chief Executive Cristiano Amon said Qualcomm anticipates supplying roughly 75% of modem chips for Samsung’s forthcoming Galaxy S26 series, down from full supply for the current Galaxy S25 models. The disclosure sent Qualcomm shares down about 2.7% in after-hours trade, offsetting an earlier intraday gain of around 4%.

Growth Beyond Smartphones

With Apple moving toward its own modem technology, Qualcomm has broadened its addressable market into laptops, automotive platforms and data-centre processors. Amon also confirmed ongoing discussions with a “large AI computing firm,” signaling potential expansion into AI infrastructure.

Over the past fiscal year, non-Apple revenue climbed 18%, and handset chip revenue increased 14% to $6.96 billion, beating analyst estimates. CFO Akash Palkhiwala said handset revenue could rise in the low teens next quarter, implying at least $7.7 billion in sales.

AI Demand Drives Premium Phone Market

Amon attributed the stronger results to consumers trading up from mid-range to premium devices to access new AI capabilities. “You don’t have anything in the middle,” he said, noting the upgrade trend across key markets such as China and India.

For the fiscal fourth quarter ending Sept. 28, Qualcomm reported $11.27 billion in revenue and $3.00 in adjusted earnings per share, both above analysts’ expectations.

While near-term indicators remain positive, uncertainty over Samsung’s future orders and Apple’s transition to proprietary modems could influence Qualcomm’s trajectory. For now, heightened demand for AI-capable phones is supporting the chipmaker’s growth.