Qualcomm (NASDAQ:QCOM) Releases Earnings Results, Beats Expectations By $0.09 EPS

Qualcomm (NASDAQ:QCOM) announced its earnings results on Wednesday. The wireless technology company reported $2.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.56 by $0.09, FiscalAI reports. Qualcomm had a return on equity of 43.63% and a net margin of 22.31%.The business had revenue of $10.60 billion for the quarter, compared to analyst estimates of $10.59 billion. During the same period in the previous year, the company earned $2.85 earnings per share. The company’s revenue for the quarter was down 3.5% compared to the same quarter last year. Qualcomm updated its Q3 2026 guidance to 2.100-2.300 EPS.

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

• Reported fiscal Q2 revenue of $10.6 billion and non?GAAP EPS of $2.65, with EPS at the high end of guidance.
• Automotive is a major growth engine — Qualcomm surpassed $5 billion in annualized automotive revenue, expects a >$6 billion run rate by fiscal year end, and will begin commercial shipments of its 5th?generation Snapdragon Digital Chassis.
• Data center progress — Alphawave integration is underway and Qualcomm expects initial shipments of a custom silicon engagement with a leading hyperscaler in the December quarter while advancing its own data center CPUs and inference accelerators.
• Memory industry dynamics forced OEMs (notably in China) to draw down channel inventory, causing Qualcomm to materially under?ship consumer handset demand; management expects China QCT Android revenue to bottom in Q3 before recovering.
• Corporate and cash actions — the company recorded a $5.7 billion non?cash GAAP tax benefit (excluded from non?GAAP) and returned $3.7 billion to shareholders via buybacks and dividends this quarter.

Qualcomm Stock Performance

Qualcomm stock traded down $2.27 during midday trading on Friday, reaching $177.31. 13,896,912 shares of the stock traded hands, compared to its average volume of 12,700,168. The company has a current ratio of 2.51, a quick ratio of 1.83 and a debt-to-equity ratio of 0.64. The firm has a fifty day moving average price of $135.69 and a two-hundred day moving average price of $155.33. The firm has a market cap of $189.19 billion, a price-to-earnings ratio of 19.28 and a beta of 1.28. Qualcomm has a fifty-two week low of $121.99 and a fifty-two week high of $205.95.

Qualcomm Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th will be paid 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 of this dividend is Thursday, June 4th. This is a positive change from Qualcomm’s previous quarterly dividend of $0.89. Qualcomm’s dividend payout ratio (DPR) is presently 40.00%.

Analyst Ratings Changes

Several research firms have recently weighed in on QCOM. Evercore set a $179.00 target price on shares of Qualcomm in a research report on Thursday. Robert W. Baird set a $300.00 target price on shares of Qualcomm in a research report on Friday. Summit Insights raised shares of Qualcomm from a “hold” rating to a “buy” rating in a research report on Thursday. Susquehanna boosted their target price on shares of Qualcomm from $140.00 to $160.00 and gave the stock a “neutral” rating in a research report on Thursday. Finally, UBS Group boosted their target price on shares of Qualcomm from $150.00 to $170.00 and gave the stock a “neutral” rating in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, fifteen have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat, Qualcomm currently has a consensus rating of “Hold” and an average price target of $172.40.

Insider Activity

In other news, EVP Akash J. Palkhiwala sold 3,333 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $137.65, for a total value of $458,787.45. Following the completion of the sale, the executive vice president directly owned 35,599 shares of the company’s stock, valued at approximately $4,900,202.35. This represents a 8.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Heather S. Ace sold 3,200 shares of the business’s stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $137.00, for a total value of $438,400.00. Following the sale, the executive vice president directly owned 16,393 shares in the company, valued at approximately $2,245,841. The trade was a 16.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 9,310 shares of company stock valued at $1,266,729. Company insiders own 0.05% of the company’s stock.

Institutional Investors Weigh In On Qualcomm

Several hedge funds and other institutional investors have recently added to or reduced their stakes in QCOM. Brighton Jones LLC lifted its position in 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 in the last quarter. Revolve Wealth Partners LLC lifted its position in Qualcomm by 15.4% in the 4th 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 in the last quarter. Garton & Associates Financial Advisors LLC purchased a new stake in Qualcomm in the 4th quarter worth approximately $151,000. Advocate Investing Services LLC purchased a new stake in Qualcomm in the 4th quarter worth approximately $165,000. Finally, Ankerstar Wealth LLC purchased a new stake in Qualcomm in the 4th quarter worth approximately $91,000. Institutional investors own 74.35% of the company’s stock.

Qualcomm declared that its board has initiated a share repurchase plan on Tuesday, March 17th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the wireless technology company to purchase up to 14.5% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its stock is undervalued.

Key Stories Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Q2 results topped EPS estimates and highlighted strength in automotive and licensing, giving investors confidence in near?term profitability and cash generation. Read More.
• Positive Sentiment: Data?center/hyperscaler catalyst — CEO comments that Qualcomm will begin shipping custom data?center chips to a “large hyperscaler” this year shifted the story from handset dependency toward higher?growth AI/server markets. Read More.
• Positive Sentiment: Analyst support and upgrades — Several firms raised targets or reiterated buys (e.g., Benchmark, Rosenblatt, Summit Insights), fueling momentum and providing dealer support for the rally. Read More.
• Neutral Sentiment: Shareholder returns — Management increased the quarterly dividend and a $20B buyback authorization remains in place, which is supportive but already priced into recent gains. Read More.
• Neutral Sentiment: Technicals and momentum traders — Chart patterns and momentum indicators show an extended, overbought run that can keep buyers engaged but also raises short?term volatility and profit?taking risk. Read More.
• Negative Sentiment: Weaker Q3 guidance — Qualcomm guided Q3 revenue and EPS below consensus (EPS $2.10–$2.30; revenue $9.2B–$10.0B), citing a memory?chip shortage that could weigh on handset demand and near?term growth. That prompted the initial post?earnings pullback. Read More.
• Negative Sentiment: Handset revenue decline — The quarter showed a double?digit drop in handset revenue, a structural risk if smartphone recovery lags expectations. Read More.
• Negative Sentiment: Insider selling noted — A small, pre?arranged CAO sale was disclosed; while not unusual, aggregated insider sales have been flagged by data services and may draw investor attention. Read More.

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.