The San Diego-based company is expected to post a net income of $3.07 billion, or $2.85 per share, according to FactSet data. This represents a slight dip in total profit from the $3.18 billion recorded a year earlier, even as per-share earnings edge higher. The results follow a volatile fourth quarter where Qualcomm reported a loss driven by a $5.7 billion tax-related charge, though management expects the new policy to lower cash tax payments in the future.

The Apple Headwinds

Analysts at Mizuho suggest that Apple’s strategic pivot toward in-house hardware could create significant headwinds for Qualcomm through 2026. With consumers becoming increasingly price-sensitive, Mizuho forecasts an 8% decline in iPhone sales by 2026, a trend that directly threatens Qualcomm's most lucrative supply chain relationship. RBC Capital analysts echoed this sentiment, predicting muted sales growth over the next two years as the market share shifts away from the iPhone maker.

Diversification and Future Growth

To offset the potential loss of mobile revenue, Qualcomm is aggressively expanding into new sectors. While the company remains a dominant force in smartphones, it is seeking to diversify its portfolio through several high-growth initiatives:

• Automotive technology and specialized chipsets for connected vehicles
• Extended Reality (XR) and Internet of Things (IoT) hardware
• Data center infrastructure through the acquisition of Alphawave

While the Wednesday report will focus on immediate revenue, the long-term outlook remains tied to these emerging segments. The acquisition of Alphawave in December specifically bolsters Qualcomm’s data center ambitions, though RBC Capital analysts note that it may take several quarters before the segment contributes meaningful revenue to the bottom line.