Qualcomm (NASDAQ:QCOM) Trading Down 2.6% After Earnings Miss

Qualcomm Incorporated (NASDAQ:QCOM)’s stock price fell 2.6% during mid-day trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $146.00 and last traded at $151.60. Approximately 24,152,024 shares changed hands during mid-day trading, an increase of 45% from the average session volume of 16,608,588 shares. The stock had previously closed at $155.68.

The wireless technology company reported $2.21 EPS for the quarter, missing analysts’ consensus estimates of $2.23 by ($0.02). Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The business had revenue of $9.95 billion during the quarter, compared to analyst estimates of $9.69 billion. During the same quarter in the previous year, the company posted $2.77 EPS. The firm’s revenue was down 4.0% on a year-over-year basis. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS.

Qualcomm Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 3rd will be issued a $0.92 dividend. This represents a $3.68 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Thursday, September 3rd. Qualcomm’s dividend payout ratio (DPR) is currently 40.00%.

More Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Automotive and AI expansion support the longer-term outlook. Qualcomm reported record automotive revenue, raised its automotive outlook to $7 billion, and secured a multiyear agreement to supply BMW’s future digital cockpit and advanced driver-assistance platforms. The company also completed its acquisition of AI software company Modular and is targeting $40 billion in non-handset revenue by fiscal 2029. Qualcomm wins BMW chip supply deal
• Positive Sentiment: Revenue growth outside handsets provided a cushion. Automotive and IoT strength offset some handset weakness, helping quarterly revenue beat consensus estimates. This supports management’s strategy to diversify Qualcomm beyond smartphones. Qualcomm misses Q3 earnings estimates
• Neutral Sentiment: Analyst sentiment remains mixed. Susquehanna lowered its price target to $160 and adopted a neutral rating, while TD Cowen cut its target to $175 but retained a buy rating. Rosenblatt and Morgan Stanley also reduced targets, although both remain well above the current trading level. Analyst price target changes
• Negative Sentiment: Fiscal fourth-quarter guidance fell short of expectations. Qualcomm forecast EPS of $2.05–$2.25 versus consensus of $2.23, with revenue guidance broadly in line at $9.7–$10.5 billion. The outlook raised concerns about weaker profit growth. Qualcomm shares slide on higher costs and Apple weakness
• Negative Sentiment: Handset weakness, Apple-related losses and rising memory costs are pressuring margins. Handset revenue declined sharply, while Qualcomm expects faster losses of Apple modem business and warned that higher memory expenses may require price increases. Analysts also cited longer-term risks from customers developing custom silicon. Qualcomm faces margin pressures and custom silicon risks

Analysts Set New Price Targets

QCOM has been the subject of several analyst reports. Sanford C. Bernstein set a $165.00 target price on Qualcomm in a report on Thursday. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $160.00 price target on shares of Qualcomm in a research report on Thursday, April 30th. Argus set a $220.00 price objective on shares of Qualcomm in a report on Friday, May 1st. Tigress Financial lifted their target price on shares of Qualcomm from $270.00 to $280.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Qualcomm from $160.00 to $265.00 and gave the company a “neutral” rating in a research report on Friday, June 5th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, twenty-one have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $203.63.

Insider Activity at Qualcomm

In other news, EVP Heather S. Ace sold 3,200 shares of the business’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $177.82, for a total value of $569,024.00. Following the sale, the executive vice president directly owned 39,735 shares of the company’s stock, valued at approximately $7,065,677.70. The trade was a 7.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash J. Palkhiwala sold 2,500 shares of the company’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 transaction, the executive vice president owned 23,184 shares in the company, valued at approximately $4,191,899.04. This represents a 9.73% decrease in their ownership of the stock. 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. Insiders have sold a total of 21,529 shares of company stock valued at $4,011,441 in the last quarter. Corporate insiders own 0.05% of the company’s stock.

Institutional Trading of Qualcomm

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Your Advocates Ltd. LLP purchased a new position in shares of Qualcomm during the first quarter worth $26,000. Richardson Financial Services Inc. raised its holdings in shares of Qualcomm by 90.9% in the 4th quarter. Richardson Financial Services Inc. now owns 168 shares of the wireless technology company’s stock valued at $29,000 after buying an additional 80 shares during the period. Torren Management LLC purchased a new stake in shares of Qualcomm in the 4th quarter valued at $29,000. Caitong International Asset Management Co. Ltd lifted its stake in Qualcomm by 17,000.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company’s stock worth $29,000 after acquiring an additional 170 shares in the last quarter. Finally, Birchwood Financial Partners Inc. acquired a new position in Qualcomm during the 4th quarter worth about $31,000. Hedge funds and other institutional investors own 74.35% of the company’s stock.

Qualcomm Stock Down 2.6%

The business has a fifty day moving average of $201.26 and a 200 day moving average of $167.94. The company has a market capitalization of $159.79 billion, a PE ratio of 16.48, a PEG ratio of 4.84 and a beta of 1.63. The company has a current ratio of 2.37, a quick ratio of 1.61 and a debt-to-equity ratio of 0.54.

Qualcomm Company Profile

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.