Qualcomm slides as weak Q3 outlook and handset constraints drive profit-taking
Qualcomm shares fell about 4.8% on May 4, 2026 to around $168 as investors refocused on softer fiscal Q3 guidance tied to handset weakness and memory-supply constraints. The stock also gave back part of last week’s post-earnings rally, after a gap-down open near $177.70 and an intraday low around $168.28.
1) What’s moving the stock
Qualcomm (QCOM) traded sharply lower Monday, May 4, 2026, with shares down roughly 4.8% to about $168. The move extends the market’s reassessment of the company’s forward outlook after last week’s earnings, with selling pressure concentrated around guidance for the next quarter and continued concern that memory-related supply constraints are reducing smartphone OEM build plans and channel inventory.
2) The catalyst: guidance and handset pressure
The key overhang is Qualcomm’s fiscal Q3 outlook, which calls for revenue of about $9.2 billion to $10.0 billion and non-GAAP EPS of about $2.10 to $2.30. Management has linked the softer setup to a challenging memory environment that is constraining handset production and driving more cautious ordering—particularly in China—leaving shipments meaningfully below end-demand in the near term. While the company continues to point to stronger mix and growth in Automotive and IoT, the handset segment remains the largest swing factor for quarterly results.
3) Tape read: giveback after a volatile post-earnings move
Monday’s drop looks like a combination of guidance digestion and profit-taking after a volatile reaction to the April 29 earnings release, when the stock reversed intraday despite a headline beat. In Monday trading, QCOM opened near $177.70, then slid toward an intraday low near $168.28, signaling investors were more focused on the next-quarter trajectory than on the quarter just reported.
4) What to watch next
Investors will be watching for evidence that handset build plans stabilize as memory supply conditions normalize, and whether Qualcomm’s automotive growth continues to accelerate enough to cushion near-term volatility in mobile. Any incremental disclosures on AI product roadmaps and customer traction—especially around data-center and on-device AI initiatives—could also influence whether the market treats Monday’s selloff as a temporary reset or the start of a longer de-risking cycle.