Qualcomm Reports Mixed Earnings and Shifts Focus to Data Centers Amid Slumping Phone Sales
Qualcomm issued a weak earnings forecast and saw its stock drop following a sharp decline in smartphone sales. To counter the downturn, the company is shifting its business strategy toward data centers.
Qualcomm experienced a notable drop in its stock price, falling by five percent following the release of a weak earnings forecast. The company delivered better-than-expected results for the recent period, but future expectations were tempered by industry-wide pressures.
A primary factor behind the forecast is a significant downturn in smartphone sales, which tanked by approximately twenty percent compared to the year 2025. Additionally, ongoing memory shortages are weighing heavily on the smartphone sales market, creating further challenges for the mobile hardware sector.
In response to the dropping sales in its traditional market, Qualcomm is betting big on data centers to help boost its bottom line. During its Q4 2026 earnings call, the company outlined its strategic plans to establish a major presence in the data center space as it seeks new avenues for financial growth.
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