Qualcomm and Arm Shares Slide After Earnings Reports

Chip companies face memory supply constraints and mixed results

Feb. 4, 2026 at 8:39pm

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Shares of Qualcomm Inc. and Arm Holdings Plc both declined in late trading after reporting their latest quarterly earnings. Qualcomm's stock dropped over 9% as the company warned it would miss expectations in the current quarter due to global memory supply issues. Arm's stock fell nearly 8% despite edging past Wall Street's forecasts, as investors may have been disappointed by its mixed results.

Why it matters

The earnings reports from these two major chip companies provide insight into the challenges facing the semiconductor industry, particularly around memory supply constraints that are impacting smartphone manufacturers and other consumer electronics. The performance of Qualcomm and Arm is closely watched as indicators of broader trends in the chip market.

The details

Qualcomm reported Q1 earnings of $3.50 per share on $12.25 billion in revenue, beating estimates, but its net income declined from a year earlier. The company said it expects to miss Q2 forecasts due to memory supply issues, as smartphone makers are curtailing chip purchases to match available memory. Arm delivered Q3 earnings of 43 cents per share on $1.24 billion in sales, also topping expectations, but its licensing revenue came in lighter than anticipated.

  • Qualcomm reported Q1 2026 earnings on February 4, 2026.
  • Arm reported Q3 2025 earnings on February 4, 2026.

The players

Qualcomm Inc.

An American semiconductor and telecommunications equipment company that designs and markets wireless telecommunications products and services.

Arm Holdings Plc

A British semiconductor and software design company that licenses microprocessor designs and software to semiconductor companies, device manufacturers, and others.

Cristiano Amon

Chief Executive Officer of Qualcomm.

Rene Haas

Chief Executive Officer of Arm.

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What they’re saying

“Memory is going to define the size of the mobile market" for the foreseeable future.”

— Cristiano Amon, CEO, Qualcomm (CNBC)

“Demand for AI computing on our platform continues to accelerate. Record royalty results in the third quarter reflect the growing scale of our ecosystem, as customers design the Arm compute platform into next-generation systems across cloud, edge, and physical environments to deliver high-performance, power-efficient AI.”

— Rene Haas, CEO, Arm (Arm)

The takeaway

The earnings reports from Qualcomm and Arm highlight the ongoing challenges in the semiconductor industry, particularly around memory supply constraints that are impacting smartphone and other consumer electronics manufacturers. These issues are expected to continue to shape the chip market in the near-term.