Qualcomm (NASDAQ:QCOM) Releases Earnings Results, Misses Expectations By $0.01 EPS

Key Points

• Qualcomm reported adjusted EPS of $2.21, narrowly missing consensus by $0.01, while quarterly revenue of $9.95 billion exceeded expectations of $9.69 billion.
• Shares fell 4.4% to about $155.68 after the results, amid concerns about smartphone weakness and uncertainty over the company’s AI and data-center growth.
• Qualcomm declared a quarterly dividend of $0.92 per share, equivalent to an annualized $3.68 payout and a 2.4% yield; analysts collectively rate the stock “Hold,” with a consensus price target of $222.77.

Qualcomm (NASDAQ:QCOM - Get Free Report) issued its quarterly earnings data on Wednesday. The wireless technology company reported $2.21 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.22 by ($0.01), FiscalAI reports. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.The firm had revenue of $9.95 billion during the quarter, compared to analysts' expectations of $9.69 billion.

Qualcomm Trading Down 4.4%

Qualcomm stock traded down $7.20 during mid-day trading on Wednesday, hitting $155.68. The company's stock had a trading volume of 16,372,435 shares, compared to its average volume of 16,500,072. The firm has a market capitalization of $164.09 billion, a PE ratio of 16.92, a price-to-earnings-growth ratio of 5.05 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 has a 1 year low of $121.99 and a 1 year high of $259.92. The stock's fifty day moving average is $202.20 and its two-hundred day moving average is $168.13.

Qualcomm Dividend Announcement

The firm also recently disclosed 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. The ex-dividend date is Thursday, September 3rd. This represents a $3.68 dividend on an annualized basis and a yield of 2.4%. Qualcomm's dividend payout ratio is currently 40.00%.

Key Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm was named BMW Group’s lead compute-silicon provider for digital cockpits and advanced driver-assistance and automated-driving systems through the next decade. The agreement expands the potential for recurring automotive revenue through Qualcomm’s Snapdragon Digital Chassis portfolio. Qualcomm wins BMW chip supply deal
• Positive Sentiment: Qualcomm completed its all-stock acquisition of Modular, an AI-software company. Modular’s platform is intended to help developers deploy generative and agentic AI across different computing systems, strengthening Qualcomm’s push from edge devices into data-center and broader AI infrastructure markets. Qualcomm completes Modular acquisition
• Positive Sentiment: Recent coverage highlights expanded Samsung cooperation, AI initiatives and continued automotive growth as potential catalysts that could reduce Qualcomm’s reliance on smartphones. The company also recently declared a quarterly dividend of $0.92 per share. Qualcomm Samsung expansion and AI deals
• Neutral Sentiment: Qualcomm is scheduled to report fiscal third-quarter results after the market close. Options markets imply an unusually large post-earnings move of roughly 9%, reflecting significant uncertainty around guidance, smartphone demand and the pace of AI-related growth. Qualcomm stock could swing 9 percent
• Negative Sentiment: The stock has fallen sharply from its yearly high and is testing technical support ahead of earnings. Investors remain concerned that handset revenue declined 13% in the prior quarter, while the company’s AI and data-center expansion has yet to fully offset smartphone-related weakness. Qualcomm is down from its high
• Negative Sentiment: Broader market caution is adding pressure, with investors awaiting a Federal Reserve decision and monitoring turbulence in the memory-chip market. These macro concerns may make investors less willing to bid up semiconductor shares before Qualcomm provides its outlook.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. Melius Research set a $220.00 price target on Qualcomm in a research report on Monday, May 18th. Wells Fargo & Company raised their target price on Qualcomm from $230.00 to $265.00 and gave the stock an "equal weight" rating in a research note on Thursday, June 25th. BNP Paribas Exane lowered shares of Qualcomm to a "neutral" rating in a report on Wednesday, April 29th. Royal Bank Of Canada boosted their price target on Qualcomm from $175.00 to $250.00 and gave the company a "sector perform" rating in a report on Thursday, June 25th. Finally, Freedom Capital cut Qualcomm from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, May 13th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, twenty-one have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $222.77.

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, CAO Patricia Y. Grech sold 829 shares of the company's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $201.77, for a total value of $167,267.33. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 21,721 shares of company stock worth $4,044,465. 0.05% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Qualcomm

A number of large investors have recently modified their holdings of QCOM. Brighton Jones LLC raised its holdings in Qualcomm by 116.6% during the fourth quarter. Brighton Jones LLC now owns 17,356 shares of the wireless technology company's stock worth $2,666,000 after purchasing an additional 9,343 shares in the last quarter. Revolve Wealth Partners LLC boosted its holdings in Qualcomm by 15.4% in the fourth quarter. Revolve Wealth Partners LLC now owns 2,542 shares of the wireless technology company's stock valued at $391,000 after purchasing an additional 340 shares during the last quarter. Sivia Capital Partners LLC raised its stake in shares of Qualcomm by 44.3% in the 2nd quarter. Sivia Capital Partners LLC now owns 3,325 shares of the wireless technology company's stock valued at $530,000 after purchasing an additional 1,020 shares in the last quarter. Main Street Financial Solutions LLC raised its position in shares of Qualcomm by 6.1% during the 2nd quarter. Main Street Financial Solutions LLC now owns 5,778 shares of the wireless technology company's stock valued at $920,000 after acquiring an additional 333 shares in the last quarter. Finally, Transamerica Financial Advisors LLC boosted its stake in Qualcomm by 9.7% in the second quarter. Transamerica Financial Advisors LLC now owns 6,800 shares of the wireless technology company's stock valued at $1,083,000 after acquiring an additional 603 shares during the period. 74.35% of the stock is owned by hedge funds and other institutional investors.

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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