Qualcomm (NASDAQ:QCOM) Posts Earnings Results

Qualcomm (NASDAQ:QCOM) released its earnings results on Wednesday. The wireless technology company reported $2.17 earnings per share for the quarter, topping analysts’ consensus estimates of $2.16 by $0.01, FiscalAI reports. Qualcomm had a return on equity of 38.36% and a net margin of 21.01%. The firm had revenue of $10.44 billion during the quarter, compared to the consensus estimate of $10.12 billion.

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

• Qualcomm reported fiscal Q4 revenue of $10.4 billion and non-GAAP EPS of $2.17, but QCT handset revenue was pressured by memory-related weakness. For fiscal Q1, it expects handset revenue to decline by a mid-single-digit percentage sequentially, including the continued Apple product ramp-down; management assumes the overall handset market will be flat to down in calendar 2027.
• Data center is beginning to contribute revenue, with more than $650 million expected in fiscal Q1 and targets of $5 billion in fiscal 2027 and a $7 billion exit run rate. Management says demand and order coverage support further growth, though supply may constrain upside and custom silicon will dilute gross margins while contributing to operating margins.
• Automotive revenue reached $2 billion in Q4, up 89% year over year, and the business exited fiscal 2026 at an approximately $8 billion annualized run rate. Qualcomm expects fiscal 2027 non-handset QCT revenue—including automotive, IoT, and data center—to grow more than 60% and exceed half of QCT revenue.
• Qualcomm renewed licensing agreements with Apple, Huawei, and Transsion, and said its QTL revenue run rate remains unchanged. The company said it has no major handset OEM renewals scheduled for the next several years.
• SpaceX selected Qualcomm to supply technology for Starlink Mobile’s U.S. terrestrial 5G network, with deployment beginning in 2027 and revenue expected mainly from fiscal 2028. Qualcomm will provide radio and digital-unit silicon along with Layer 1 software under a multi-year agreement.

Qualcomm Stock Performance

Shares of NASDAQ:QCOM traded up $8.76 during midday trading on Wednesday, hitting $173.19. The company’s stock had a trading volume of 22,074,638 shares, compared to its average volume of 15,064,607. Qualcomm has a fifty-two week low of $121.99 and a fifty-two week high of $259.92. The stock has a market capitalization of $184.94 billion, a price-to-earnings ratio of 20.05, a PEG ratio of 3.65 and a beta of 1.70. The stock’s 50 day simple moving average is $178.23 and its 200 day simple moving average is $169.48. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.28 and a current ratio of 2.02.

Qualcomm Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Shareholders of record on Thursday, December 3rd will be issued a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date is Thursday, December 3rd. Qualcomm’s dividend payout ratio is 42.59%.

Key Stories Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: SpaceX selected Qualcomm’s Dragonwing platforms and software for Starlink Mobile’s planned U.S. terrestrial 5G network under a multiyear agreement. Qualcomm called it its largest 5G initiative to date, potentially opening a sizable opportunity beyond smartphones. SpaceX signs deal with Qualcomm to provide network technology for U.S. mobile service
• Positive Sentiment: Automotive chip revenue nearly doubled, offering evidence of growth in a business outside Qualcomm’s traditional handset market—though it remains too small to offset the phone-chip decline so far. Qualcomm’s Phone Chip Sales Drop 26%: Rapid Earnings Reaction
• Negative Sentiment: Qualcomm beat quarterly adjusted earnings expectations by a penny, reporting $2.17 per share, but revenue of $10.32 billion fell 8% year over year. Investors focused on management’s muted forecast, with a memory shortage weighing on smartphone sales. Qualcomm issues disappointing earnings forecast as memory shortage weighs on smartphone sales
• Negative Sentiment: Handset weakness is the central near-term concern: phone-chip sales dropped about 26%, dragging down total revenue and chip margins. The automotive business has not yet grown enough to fill the gap. Qualcomm’s Phone Chip Sales Drop 26%: Rapid Earnings Reaction

Insider Activity at Qualcomm

In other news, CAO Patricia Y. Grech sold 625 shares of the stock in a transaction on Friday, August 21st. The shares were sold at an average price of $162.85, for a total value of $101,781.25. Following the completion of the transaction, the chief accounting officer owned 208 shares in the company, valued at approximately $33,872.80. This represents a 75.03% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ann C. Chaplin sold 1,827 shares of the firm’s stock in a transaction dated Friday, October 16th. The stock was sold at an average price of $174.75, for a total transaction of $319,268.25. Following the transaction, the executive vice president owned 25,770 shares of the company’s stock, valued at approximately $4,503,307.50. This represents a 6.62% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 30,258 shares of company stock worth $5,727,616. 0.05% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on QCOM. TD Cowen upped their price target on Qualcomm from $175.00 to $200.00 and gave the company a “buy” rating in a report on Monday, October 19th. Rosenblatt Securities reissued a “buy” rating and set a $235.00 price objective on shares of Qualcomm in a research report on Wednesday, September 9th. HSBC restated a “hold” rating on shares of Qualcomm in a research note on Wednesday, July 15th. Robert W. Baird set a $400.00 price target on Qualcomm in a research note on Thursday, July 30th. Finally, Barclays restated an “underweight” rating on shares of Qualcomm in a report on Wednesday, September 9th. Three research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-one have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $205.48.

Qualcomm Company Profile

Qualcomm Incorporated is a technology company that develops and commercializes wireless communications and semiconductor technologies. Through Qualcomm Technologies, Inc, the company designs integrated circuits, system software and related platforms used in smartphones, personal computers, automobiles, industrial equipment, consumer devices and other connected products. Its Snapdragon platforms support mobile computing, connectivity, artificial intelligence and multimedia applications, while its broader portfolio includes radio-frequency systems, networking and edge-computing technologies.

Qualcomm also operates a significant technology-licensing business through its Qualcomm Technology Licensing segment.