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Luke Kawa

Qualcomm becomes latest chip company to dip despite posting impressive quarterly results

Qualcomm reported a beat on the top and bottom lines in its fiscal fourth quarter, along with a bright outlook for the start of its next fiscal year.

Here are the Q4 results:

  • Revenues: $11.27 billion (compared to Wall Street’s estimate of $10.77 billion and guidance for about $10.7 billion)

  • Adjusted earnings per share: $3 (estimate: $2.88, guidance: ~$2.85)

Its guidance for the current quarter (fiscal Q1 2026) was stellar:

  • Revenues: $12.2 billion (estimate: $11.59 billion)

  • Adjusted earnings per share: $3.40 (estimate: $3.26)

Shares soared today ahead of the release, outperforming peers in a broad-based rebound for semiconductor stocks. Qualcomm has declined in the session following each of its past five earnings reports. So far, the reaction is more of the same: shares are down more than 2% in premarket trading on Thursday.

It joins the likes of Advanced Micro Devices and Micron in the category of chip stocks that had their wings briefly clipped in the knee-jerk reaction to solid earnings.

Qualcomm is readying itself for a bigger push in the AI market, having recently announced new chips for data centers expected to be available in 2026 and 2027, with Saudi Arabia’s HUMAIN as the first big buyer.

The chips that go in smartphones are still Qualcomm’s biggest business, but gauging potential demand for these upcoming chips may assume more prominence for the company in the quarters to come.

Bank of America analyst Kevin Niderpruem boosted his price target on the semiconductor company to $215 from $200 following this report.

“The strong results are supported by handset strength in China, attributed to timing of the Chinese holiday and product launches, as well as solid performance in non-handsets and long-term opportunities in data centers,” he writes.

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Luke Kawa

Core Scientific craters after soft Q4 sales

Core Scientific is sinking in postmarket trading after reporting much lower-than-expected sales in the final three months of 2025 and informing investors of an accounting error in its previous results.

For Q4, the bitcoin miner turned data center company reported:

  • Revenues of $79.8 million (estimate: $115 million).

  • Adjusted net income of $216 million (estimate: -$47.5 million).

Core Scientific’s self-mining and high-performance computing hosting divisions posted far less in sales than anticipated.

The company also indicated that it had overstated the value of property, plant, and equipment, requiring a number of previous releases to be restated. However, these changes do not affect revenue, adjusted EBITDA, or net cash flows, management said.

Core Scientific shareholders rejected CoreWeave’s offer to purchase the company in Q4, which would have created a more vertically integrated neocloud provider.

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Luke Kawa

Credo Technology tumbles after issuing mediocre guidance

Credo Technology Group is down double digits in postmarket trading after its solid Q3 results weren’t enough to offset a ho-hum outlook for the current quarter.

For Q3, the connectivity solutions company posted:

  • Revenues of $407 million (estimate: $406.4 million).

  • Adjusted earnings per share of $1.07 (estimate: $0.92).

However, for Q4, management said sales would range between $425 million and $435 million, the midpoint of which is modestly below Wall Street’s call for $430.5 million.

Shares of Credo had spiked earlier this month when management released preliminary Q3 figures and signaled that its rapid sales growth would continue.

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Max Knoblauch

Archer reports deeper-than-expected Q4 loss

Air taxi maker Archer Aviation reported its fourth-quarter earnings results after the bell on Monday. Its shares fell 2.4% after-hours, eating into some of the gains the stock made in the regular session.

The company posted a loss of $0.26 per share, compared to the $0.24 loss per share expected by analysts polled by FactSet.

Archer ended 2025 with $1.96 billion in cash and cash equivalents, up from Q3’s $1.64 billion and up from $834.5 million in the same quarter the year prior.

Looking ahead to the first quarter, Archer said it expects adjusted earnings before interest, taxes, depreciation, and amortization of between -$160 million and -$180 million. Wall Street expected EBITDA of -$104.7 million in Q1.

Last week, Archer announced that it would partner with SpaceX’s Starlink to bring satellite internet into its Midnight aircraft. In its fourth-quarter shareholder letter, the company said it is targeting its first passenger flights this year, mirroring rival Joby’s timeline.

In a sign that investors, like CEO Adam Goldstein, see Archer’s most promising near-term opportunity in its defense business, its shares closed up more than 5% on Monday as investors scooped up defense contractor stocks. Goldstein told Sherwood News last year that he sees defense, with a focus on the autonomous and attritable industry, as the company’s “front and center” division for the next decade. Per the company’s shareholder letter:

“Our partnership with Anduril is at the core of our defense strategy, and it continues to accelerate. We are designing an autonomous, hybrid-electric VTOL aircraft built for dual use. For defense, it will fly alongside armed reconnaissance attack helicopters as a loyal wingman. The aircraft is designed to meet the needs of the U.S. and its allies for decades to come.”

Electric aircraft rivals Beta Technologies and Joby Aviation also ended the day higher.

markets
Luke Kawa

Plug Power pops after Q4 revenues exceed expectations

Plug Power is soaring in postmarket trading after issuing solid fourth-quarter sales that more than outweighed some massive red ink on its bottom line.

The hydrogen fuel cell company reported:

  • Revenues of $225.22 million (estimate: $217.26 million).

  • Adjusted earnings per share of -$0.06 (estimate: -$0.10).

$763 million in “various net charges” over the course of the quarter caused many of Plug’s other earnings metrics to look significantly worse.

Management reaffirmed its goal of having positive EBITDAS (the “S” is for stock-based compensation) by 2026, and said the company is “positioned” to do so.

Tasha Matsumoto
10h
Stocks close higher after whipsawing; oil surges

Defense and oil stocks rose after the US launched a series of attacks against Iran, while fuel-reliant travel assets fell.

Sunset Bull

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