Qualcomm Q4 Earnings Beat Estimates Despite Tax Charge, Stock Dips
Qualcomm delivered a strong fourth quarter with revenue reaching $11.3 billion, surpassing guidance, and non-GAAP EPS of $3.00 beating consensus estimates. The chipmaker's automotive segment crossed $1 billion in revenue, signaling robust growth in IoT and connected vehicle technologies.
A $5.7 billion non-cash tax charge related to legislative changes dragged GAAP results into negative territory, creating a net loss of $3.12 billion. This accounting adjustment, while impacting short-term earnings, is expected to reduce future tax liabilities.
Despite the positive operational performance, Qualcomm shares fell nearly 3% in pre-market trading. The decline appears disconnected from fundamentals, as management reaffirmed confidence in their 2026 outlook during the earnings call.
