Erste Group Bank Cuts Earnings Estimates for Qualcomm

Key Points

• Erste Group Bank lowered its FY2027 earnings estimate for Qualcomm to $7.66 per share from $7.79, which is below the broader consensus estimate of $8.00.
• Qualcomm recently beat quarterly expectations, posting adjusted EPS of $2.65 versus $2.56 expected and revenue of $10.60 billion, though sales were still down 3.5% year over year.
• The stock was trading lower amid mixed sentiment, with Qualcomm down 6.9% in the session, even as the company recently raised its quarterly dividend and maintained a $20 billion share buyback authorization.

Qualcomm Incorporated (NASDAQ:QCOM - Free Report) - Research analysts at Erste Group Bank cut their FY2027 earnings estimates for Qualcomm in a note issued to investors on Friday, June 5th. Erste Group Bank analyst H. Engel now forecasts that the wireless technology company will post earnings of $7.66 per share for the year, down from their prior estimate of $7.79. The consensus estimate for Qualcomm's current full-year earnings is $8.00 per share.

Qualcomm (NASDAQ:QCOM - Get Free Report) last announced its earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share for the quarter, topping analysts' consensus estimates of $2.56 by $0.09. Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The company had revenue of $10.60 billion during the quarter, compared to the consensus estimate of $10.59 billion. During the same period in the previous year, the firm posted $2.85 earnings per share. The company's revenue was down 3.5% on a year-over-year basis. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS.

A number of other brokerages also recently weighed in on QCOM. Royal Bank Of Canada boosted their target price on shares of Qualcomm from $150.00 to $175.00 and gave the stock a "sector perform" rating in a research note on Thursday, April 30th. Zacks Research raised shares of Qualcomm from a "strong sell" rating to a "hold" rating in a research note on Monday, May 4th. Robert W. Baird set a $300.00 price target on shares of Qualcomm in a research report on Friday, May 1st. Summit Insights upgraded shares of Qualcomm from a "hold" rating to a "buy" rating in a research report on Thursday, April 30th. Finally, BNP Paribas Exane cut shares of Qualcomm to a "neutral" rating in a research report on Wednesday, April 29th. Fourteen research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $181.79.

Qualcomm Trading Down 6.9%

Shares of NASDAQ QCOM opened at $191.20 on Thursday. Qualcomm has a 1-year low of $121.99 and a 1-year high of $259.92. The company has a market cap of $201.52 billion, a PE ratio of 20.78, a P/E/G ratio of 25.41 and a beta of 1.59. The company has a current ratio of 2.37, a quick ratio of 1.61 and a debt-to-equity ratio of 0.54. The company has a 50-day moving average of $181.26 and a two-hundred day moving average of $164.25.

Qualcomm Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th will be given a dividend of $0.92 per share. The ex-dividend date is Thursday, June 4th. This represents a $3.68 annualized dividend and a dividend yield of 1.9%. This is a positive change from Qualcomm's previous quarterly dividend of $0.89. Qualcomm's dividend payout ratio is presently 40.00%.

Qualcomm declared that its Board of Directors has initiated a share buyback 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 reacquire up to 14.5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling at Qualcomm

In other news, CAO Patricia Y. Grech sold 829 shares of Qualcomm stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $201.77, for a total transaction of $167,267.33. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather S. Ace sold 3,200 shares of Qualcomm stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $177.82, for a total transaction of $569,024.00. Following the sale, the executive vice president owned 39,735 shares of the company's stock, valued at approximately $7,065,677.70. This represents a 7.45% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 19,306 shares of company stock worth $3,435,583 in the last 90 days. Corporate insiders own 0.05% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Pine Valley Investments Ltd Liability Co grew its holdings in Qualcomm by 2.3% during the first quarter. Pine Valley Investments Ltd Liability Co now owns 29,713 shares of the wireless technology company's stock valued at $3,826,000 after purchasing an additional 665 shares during the period. Chelsea Counsel Co. grew its holdings in Qualcomm by 12.0% during the first quarter. Chelsea Counsel Co. now owns 6,518 shares of the wireless technology company's stock valued at $839,000 after purchasing an additional 700 shares during the period. CoreFirst Bank & Trust grew its holdings in Qualcomm by 17.3% during the first quarter. CoreFirst Bank & Trust now owns 712 shares of the wireless technology company's stock valued at $92,000 after purchasing an additional 105 shares during the period. First Nebraska Trust Co acquired a new position in Qualcomm during the first quarter valued at approximately $17,774,000. Finally, Financial Solutions Advisory Group Inc. acquired a new position in Qualcomm during the first quarter valued at approximately $368,000. Institutional investors and hedge funds own 74.35% of the company's stock.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Nvidia CEO Jensen Huang publicly endorsed Qualcomm, saying investors should “buy their stock,” which helped spark after-hours buying and lifted sentiment around QCOM’s AI and mobile-chip strategy. Qualcomm shares rise 2% after Nvidia CEO endorses the stock
• Positive Sentiment: Qualcomm continues to expand beyond smartphones, including a new AI-powered enterprise conference platform with Primax and collaboration with SLB on edge AI solutions, reinforcing its push into higher-growth non-mobile markets. Qualcomm’s Edge AI Push Into Enterprise Meeting Rooms Faces Valuation Hurdles
• Neutral Sentiment: Broker coverage remains lukewarm, with Qualcomm receiving an average “Hold” rating, suggesting Wall Street sees limited near-term upside despite its strategic initiatives.
• Negative Sentiment: The stock is being hit by a broader semiconductor selloff, with reports pointing to sector-wide correction and profit-taking after a multi-month AI rally. Qualcomm Slips, Shorter-Term Momentum Cools From Roller Coaster AI Highs
• Negative Sentiment: Semiconductor peers and mobile-chip stocks were also weaker, including Arm and Marvell, reinforcing that the move in QCOM appears driven more by sector weakness than company-specific fundamentals. Qualcomm Drops 6%, Arm Holdings Falls 5% as Mobile-Chip Stocks Slide in the Selloff
• Negative Sentiment: Recent headlines also flagged Qualcomm as underperforming competitors, suggesting investors are favoring other chip names in the current market rotation. Qualcomm Inc. stock underperforms Tuesday when compared to competitors

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.

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