Qualcomm (NASDAQ:QCOM) Issues Earnings Results

Qualcomm (NASDAQ:QCOM) issued its quarterly earnings data on Wednesday. The wireless technology company reported $2.21 EPS for the quarter, missing analysts’ consensus estimates of $2.23 by ($0.02), FiscalAI reports. Qualcomm had a net margin of 21.01% and a return on equity of 39.89%. The firm had revenue of $9.95 billion during the quarter, compared to analyst estimates of $9.69 billion. During the same period in the prior year, the company earned $2.77 earnings per share. The business’s quarterly revenue was down 4.0% compared to the same quarter last year. Qualcomm updated its Q4 2026 guidance to 2.050-2.250 EPS.

Here are the key takeaways from Qualcomm’s conference call:

• Qualcomm raised its fiscal 2029 non-handset revenue target to more than $40 billion, including over $24 billion from automotive and IoT and over $15 billion from data center, nearly doubling its prior outlook.
• Automotive revenue reached a record $1.6 billion, up 61% year over year, and Qualcomm raised its fiscal 2026 exit annualized automotive revenue target to approximately $7 billion. Expanded agreements with BMW and Stellantis strengthen its multi-year ADAS and digital cockpit pipeline.
• Qualcomm expects its two initial custom data-center silicon engagements to begin generating revenue in the December quarter, while its High Bandwidth Compute product has completed tape-out and is targeted for launch in mid-2027.
• Industry-wide memory inflation and supply-chain cost increases are pressuring handset demand and QCT gross margins, which are expected to remain below the historical range in the near term. Qualcomm is implementing broad-based, double-digit price increases, with benefits expected to emerge gradually over the next several quarters.
• Qualcomm expects Apple-related product revenue to decline more rapidly as its share of upcoming iPhone launches will be materially below the previously estimated 20%, including an anticipated roughly 50% sequential decline from September to December. QCT is also forecasting lower fourth-quarter margins and increased operating expenses from Modular and data-center investments.

Qualcomm Stock Down 2.7%

Shares of NASDAQ QCOM traded down $4.02 during mid-day trading on Friday, reaching $147.58. 3,955,522 shares of the company’s stock traded hands, compared to its average volume of 16,520,768. The company has a debt-to-equity ratio of 0.54, a current ratio of 2.37 and a quick ratio of 1.61. The business has a 50-day simple moving average of $200.02 and a 200 day simple moving average of $167.76. The stock has a market cap of $155.55 billion, a P/E ratio of 17.14, a PEG ratio of 4.62 and a beta of 1.63. Qualcomm has a 1-year low of $121.99 and a 1-year high of $259.92.

Qualcomm Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd will be paid a $0.92 dividend. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Thursday, September 3rd. Qualcomm’s dividend payout ratio (DPR) is 40.00%.

Key Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Fiscal third-quarter revenue reached $9.95 billion, exceeding the $9.69 billion analyst estimate. Automotive and IoT strength helped offset smartphone weakness, while management raised its automotive revenue outlook to approximately $7 billion. QCOM Q2 Deep Dive: Data Center and Automotive Growth Offset Smartphone Headwinds
• Positive Sentiment: Qualcomm is expanding beyond handsets through automotive, IoT, artificial intelligence and data-center initiatives, with a goal of generating $40 billion in non-handset revenue by fiscal 2029. Its BMW partnership and completed Modular acquisition support that diversification strategy. QCOM Q3 Earnings Call Highlights AI Expansion
• Neutral Sentiment: Next-quarter revenue guidance of approximately $10.1 billion at the midpoint was reportedly above analysts’ expectations, but the benefit is not expected to translate into comparable profit growth because of cost pressures. QCOM Q2 Deep Dive: Data Center and Automotive Growth Offset Smartphone Headwinds
• Neutral Sentiment: Analyst sentiment has become mixed: UBS, Susquehanna, TD Cowen, Rosenblatt and Morgan Stanley all lowered price targets, although TD Cowen and Rosenblatt retained buy ratings and several targets remain above the current trading level. Qualcomm Q3 Highlights
• Negative Sentiment: Adjusted earnings of $2.21 per share narrowly missed consensus estimates and fell from $2.77 a year earlier. Revenue also declined 4% year over year, reflecting continued handset weakness. Qualcomm Q3 Earnings Miss Estimates
• Negative Sentiment: Fourth-quarter EPS guidance of $2.05–$2.25 has a midpoint below the approximately $2.23 analyst forecast. Qualcomm warned that higher memory costs may pressure margins and said Apple-related revenue declines are likely to accelerate as Apple increasingly uses its own modem technology. Qualcomm shares slide as higher costs, Apple-related weakness cloud profit forecast

Insider Buying and Selling at Qualcomm

In other Qualcomm news, EVP Akash J. Palkhiwala sold 2,500 shares of the business’s stock in a transaction that occurred on Tuesday, July 14th. The stock was sold at an average price of $180.81, for a total transaction of $452,025.00. Following the completion of the sale, the executive vice president directly owned 23,184 shares of the company’s stock, valued at approximately $4,191,899.04. The trade was a 9.73% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Y. Grech sold 829 shares of Qualcomm stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $201.77, for a total transaction of $167,267.33. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 21,529 shares of company stock worth $4,011,441. 0.05% of the stock is currently owned by insiders.

Institutional Trading of Qualcomm

Institutional investors and hedge funds have recently modified their holdings of the business. Brighton Jones LLC boosted its holdings in shares of Qualcomm by 116.6% in the 4th quarter. Brighton Jones LLC now owns 17,356 shares of the wireless technology company’s stock worth $2,666,000 after buying an additional 9,343 shares during the last quarter. Revolve Wealth Partners LLC increased its holdings in Qualcomm by 15.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 2,542 shares of the wireless technology company’s stock worth $391,000 after buying an additional 340 shares during the last quarter. Front Street Capital Management Inc. raised its position in Qualcomm by 24.5% in the fourth quarter. Front Street Capital Management Inc. now owns 1,655 shares of the wireless technology company’s stock worth $283,000 after acquiring an additional 326 shares during the period. Richmond Investment Services LLC raised its position in Qualcomm by 7.2% in the fourth quarter. Richmond Investment Services LLC now owns 1,622 shares of the wireless technology company’s stock worth $277,000 after acquiring an additional 109 shares during the period. Finally, GWN Securities Inc. boosted its stake in Qualcomm by 22.9% in the fourth quarter. GWN Securities Inc. now owns 1,592 shares of the wireless technology company’s stock valued at $272,000 after acquiring an additional 297 shares during the last quarter. 74.35% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the company. Cantor Fitzgerald reduced their price target on Qualcomm from $200.00 to $165.00 and set a “neutral” rating on the stock in a research report on Monday. Argus set a $220.00 target price on Qualcomm in a research report on Friday, May 1st. The Goldman Sachs Group set a $160.00 target price on shares of Qualcomm in a report on Thursday. UBS Group lowered their price target on Qualcomm from $190.00 to $170.00 and set a “neutral” rating for the company in a report on Thursday. Finally, Morgan Stanley dropped their price objective on shares of Qualcomm from $231.00 to $220.00 and set an “equal weight” rating for the company in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, twenty-one have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $203.63.

About Qualcomm

Qualcomm Incorporated is a global semiconductor and telecommunications equipment company headquartered in San Diego, California. Founded in 1985, the company is known for its development of wireless technologies and for playing a central role in the evolution of digital cellular standards, including CDMA and subsequent generations of mobile standards. Qualcomm’s business combines the design and sale of semiconductor products with a patent licensing program for wireless technologies and related intellectual property.

The company’s product portfolio includes system-on-chip (SoC) platforms marketed under the Snapdragon brand, cellular modem and RF front-end components, connectivity solutions for Wi‑Fi and Bluetooth, and processors and platforms aimed at automotive, IoT, networking and edge-computing applications.