Qualcomm Brands Cut Shipments Amid Memory Shortage

Q1 2026 Results and Outlook

Qualcomm reports Q1 2026 revenue of $12.2 billion and projects Q2 revenue at $10.2 to $11 billion. The results come as the company identifies a global memory shortage weighing on handset production. On the Q1 earnings call, Chief Financial Officer Akash Palkhiwala notes several smartphone brands are reducing output in the coming quarter.

The near-term outlook reflects supply constraints more than demand weakness, with the Q2 guidance clearly below Q1 as memory components remain scarce. Palkhiwala emphasizes that the math behind the forecast is driven by component availability rather than consumer spending patterns.

Memory Shortage and OEM Cuts

Palkhiwala describes increasing demand for memory solutions in AI data centers as driving near-term uncertainty in memory supply and pricing for handset OEMs. He notes several OEMs, especially in China, have cut handset build plans and reduced channel inventories as a result.

Qualcomm CEO Cristiano Amon says the next quarter’s outlook is not shaped by consumer demand, which remains healthy, but by the supply crunch. He explains the global DRAM shortage is triggered by memory suppliers prioritizing high-bandwidth memory for AI data centers. Amon does not commit to how long the shortage will persist into the fiscal year or beyond.

Industry Impact and Qualcomm's Capacity Plans

Amon adds that mobile handset size for the full fiscal year will be determined by memory availability. The company will monitor this on a quarterly basis as phones get repriced and market tiers shift toward higher-end models. He hints that non-flagship mid- and budget-range smartphones could be the worst affected segments.

The Qualcomm chief notes that bigger brands may be more resilient to the constraint, but no original equipment manufacturer will be immune. Capacity build-out plans to address the DRAM shortage are in progress, yet availability will hinge on AI data-center expansions and the pace of those deployments.

Analysts and investors are watching memory supply and pricing trends as the year progresses. Qualcomm's leaders confirmed uncertainty regarding the immediate impact of memory availability and then the impact on mobile device manufacturing in various areas.

• Q1 2026 revenue: $12.2 billion
• Q2 2026 revenue guidance: $10.2 to $11 billion
• Primary Element: Global memory shortage impacting mobile device production
• Cause: Demand for data center memory due to the presence of AI in data centers impacting supply levels

Qualcomm has known that there will be continuing growth in total capacity to address current shortages of DRAM, and that total capacity will ultimately be driven by how quickly new data centers are being built and put into operation.