Qualcomm (NASDAQ:QCOM) Releases Earnings Results

Key Points

• Qualcomm reported fiscal Q2 non‑GAAP EPS of $2.65, beating consensus by $0.09, with revenue of $10.6 billion (down 3.5% YoY); it guided Q3 EPS to $2.10–$2.30, a range that disappointed Street expectations.
• Management flagged strong secular growth in automotive — surpassing a $5 billion annualized run rate and targeting >$6 billion by year‑end with commercial shipments of its 5th‑gen Snapdragon Digital Chassis — and noted progress on data‑center silicon including initial hyperscaler shipments planned this December.
• Qualcomm returned $3.7 billion to shareholders this quarter, authorized a $20 billion share‑repurchase program, and raised the quarterly dividend to $0.92 (annualized yield ~2.4%).

Qualcomm (NASDAQ:QCOM - Get Free Report) issued its quarterly earnings results on Wednesday. The wireless technology company reported $2.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.56 by $0.09, FiscalAI reports. Qualcomm had a return on equity of 44.09% and a net margin of 11.96%.The company had revenue of $10.60 billion for the quarter, compared to analyst estimates of $10.59 billion. During the same quarter last year, the company posted $2.85 EPS. 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

Shares of Qualcomm stock opened at $156.00 on Thursday. The stock has a market cap of $166.45 billion, a price-to-earnings ratio of 32.23 and a beta of 1.28. Qualcomm has a twelve month low of $121.99 and a twelve month high of $205.95. The company's fifty day moving average is $134.93 and its 200 day moving average is $155.16. The company has a quick ratio of 1.83, a current ratio of 2.51 and a debt-to-equity ratio of 0.64.

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 issued a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.4%. This is a boost from Qualcomm's previous quarterly dividend of $0.89. The ex-dividend date is Thursday, June 4th. Qualcomm's dividend payout ratio (DPR) is presently 73.55%.

Key Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Q2 EPS beat — Qualcomm posted non‑GAAP EPS of $2.65, above consensus, and revenue roughly in line with expectations, giving near‑term earnings credibility. Qualcomm (QCOM) Beats Q2 Earnings Estimates
• Positive Sentiment: Data‑center catalyst — CEO Cristiano Amon said Qualcomm will begin shipping data‑center chips to “a large hyperscaler” within the calendar year, a potential new revenue stream that helped reverse the stock’s initial decline. Qualcomm shares soar 16% on CEO comments about China orders, hyperscaler customer
• Positive Sentiment: Long‑term AI upside — reports of a Qualcomm collaboration with OpenAI (and MediaTek) to develop AI‑native smartphone chips for mass‑market devices (targeting 2028) add a strategic growth narrative around on‑device AI. Qualcomm Eyes AI Native Smartphones With OpenAI Partnership And 2028 Timeline
• Neutral Sentiment: Earnings materials and call — Qualcomm filed its Q2 earnings release and supporting 8‑K/slides; investors can review management commentary and the slide deck for more detail. Qualcomm Earnings Release Available on Company's Investor Relations Website
• Neutral Sentiment: Intraday volatility — the stock initially dropped after the report and guidance, then erased losses and rallied strongly after management remarks, showing event‑driven price action and high volume. Why Qualcomm stock erased losses to rally 9% after Q2 earnings
• Negative Sentiment: Underwhelming Q3 guidance — Qualcomm guided Q3 EPS and revenue below Street expectations (EPS range and revenue midpoint under consensus), which pressured the stock before management’s positive comments. Qualcomm quarterly forecast underwhelms, but CEO says worst of memory crunch over
• Negative Sentiment: Inventory and memory supply headwinds — revenue was down year‑over‑year and the company noted rising inventories and memory‑chip shortages impacting demand, which could weigh on near‑term sales. Qualcomm NASDAQ: QCOM Reports Q1 In Line With Expectations But Inventory Levels Increase

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on QCOM. Wells Fargo & Company upgraded Qualcomm from an "underweight" rating to an "equal weight" rating and upped their price objective for the stock from $135.00 to $185.00 in a research report on Tuesday, February 24th. Mizuho decreased their target price on Qualcomm from $160.00 to $140.00 and set a "neutral" rating on the stock in a research report on Thursday, February 5th. Sanford C. Bernstein reissued a "market perform" rating and set a $140.00 target price (down from $175.00) on shares of Qualcomm in a research note on Thursday, March 26th. Susquehanna cut shares of Qualcomm from a "positive" rating to a "neutral" rating and set a $140.00 target price for the company. in a report on Thursday, February 5th. Finally, Morgan Stanley initiated coverage on shares of Qualcomm in a research note on Tuesday, February 10th. They issued an "underweight" rating and a $132.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, thirteen have issued a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $158.25.

Insider Buying and Selling at Qualcomm

In other Qualcomm news, EVP Heather S. Ace sold 3,200 shares of Qualcomm stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $137.00, for a total transaction of $438,400.00. Following the transaction, the executive vice president directly owned 16,393 shares of the company's stock, valued at approximately $2,245,841. The trade was a 16.33% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Akash J. Palkhiwala sold 3,333 shares of the company's stock in a transaction dated 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 owned 35,599 shares in the company, valued at $4,900,202.35. This trade represents a 8.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 9,118 shares of company stock valued at $1,233,705. 0.05% of the stock is owned by corporate insiders.

Institutional Trading of Qualcomm

A number of institutional investors and hedge funds have recently added to or reduced their stakes in QCOM. Caitong International Asset Management Co. Ltd boosted its stake in shares of Qualcomm by 17,000.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company's stock valued at $29,000 after purchasing an additional 170 shares during the last quarter. Birchwood Financial Partners Inc. bought a new position in Qualcomm during the fourth quarter worth $31,000. IFC & Insurance Marketing Inc. acquired a new position in Qualcomm in the fourth quarter valued at $38,000. Swiss RE Ltd. bought a new stake in Qualcomm during the fourth quarter valued at $47,000. Finally, Litman Gregory Wealth Management LLC bought a new stake in Qualcomm during the fourth quarter valued at $58,000. Institutional investors and hedge funds own 74.35% of the company's stock.

Qualcomm announced that its Board of Directors has authorized a stock repurchase program on Tuesday, March 17th that allows the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization allows the wireless technology company to reacquire up to 14.5% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

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.