Qualcomm (NASDAQ:QCOM) Shares Gap Up on Strong Earnings

Key Points

• Qualcomm beat expectations with Q2 non‑GAAP EPS of $2.65 (vs. $2.56 est.) and revenue of ~$10.6B, driving a gap‑up in the stock, but management’s Q3 guidance ($9.2B–$10.0B revenue; $2.10–$2.30 EPS) disappointed and initially sparked a selloff.
• The board raised the quarterly dividend to $0.92 and authorized a $20 billion share buyback (about 14.5% of shares), underscoring a push to return capital to shareholders.
• CEO commentary that Qualcomm will begin shipping custom data‑center chips to a “large hyperscaler” this year adds a potential new revenue stream to offset near‑term handset and memory‑related weakness.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $156.00, but opened at $172.05. Qualcomm shares last traded at $175.2230, with a volume of 10,464,576 shares.

The wireless technology company reported $2.65 earnings per share for the quarter, topping the consensus estimate of $2.56 by $0.09. Qualcomm had a return on equity of 44.09% and a net margin of 11.96%.The firm had revenue of $10.60 billion for the quarter, compared to the consensus estimate of $10.59 billion. During the same period in the prior year, the business posted $2.85 earnings per share. The company's revenue for the quarter was down 3.5% on a year-over-year basis. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS.

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 $0.92 dividend. The ex-dividend date is Thursday, June 4th. This is a positive change from Qualcomm's previous quarterly dividend of $0.89. This represents a $3.68 annualized dividend and a dividend yield of 2.1%. Qualcomm's dividend payout ratio (DPR) is currently 73.55%.

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 repurchase up to 14.5% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's board believes its stock is undervalued.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: CEO said Qualcomm will begin shipping custom data‑center chips to a “large hyperscaler” this calendar year, reviving hopes for a material new revenue stream and helping offset concern about near‑term weakness. Read More.
• Positive Sentiment: Quarterly results: non‑GAAP EPS of $2.65 beat consensus and came at the high end of guidance; revenue was essentially in line (~$10.6B). The beat helped spark the rebound after an early selloff. Read More.
• Positive Sentiment: Short‑term upgrade: Summit Insights moved the stock from “hold” to “buy,” supporting demand from some traders. (Upgrade reported in market feeds.)
• Neutral Sentiment: Company filed its earnings release and slide deck on the IR site and held the conference call/transcript that managers used to highlight strategy and product timing. Investors are parsing the slides for cadence of data‑center and handset recoveries. Read More.
• Negative Sentiment: Q3 guidance disappointed: Qualcomm guided to $9.2B–$10.0B revenue and $2.10–$2.30 adj. EPS, below Street revenue/consensus EPS — this drove the initial selloff and signals near‑term headwinds. Read More.
• Negative Sentiment: Memory supply shortages and weaker handset demand pressured revenue (handset revenue declines noted y/y), limiting near‑term visibility for semiconductor customers. Management called the memory crunch the main drag. Read More.
• Negative Sentiment: Analyst estimate moves: some shops trimmed FY estimates (Erste Group among them) and several price targets remain below current levels, highlighting differing views on the timing of the recovery. Read More.
• Negative Sentiment: Volatility: shares initially dropped on the weak guide before rallying on the hyperscaler/data‑center comments — expect continued headline‑driven swings as the market evaluates execution and timing. Read More.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on QCOM shares. Bank of America started coverage on Qualcomm in a report on Tuesday, March 10th. They issued an "underperform" rating and a $145.00 price target on the stock. Robert W. Baird set a $177.00 price target on shares of Qualcomm in a research note on Thursday, February 5th. Mizuho decreased their price target on shares of Qualcomm from $160.00 to $140.00 and set a "neutral" rating for the company in a research note on Thursday, February 5th. Barclays reaffirmed an "underweight" rating and set a $150.00 price target on shares of Qualcomm in a research note on Thursday. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of Qualcomm in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, fourteen have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $159.88.

Insiders Place Their Bets

In other Qualcomm news, EVP Heather S. Ace sold 3,200 shares of Qualcomm stock in a transaction on Monday, February 9th. The stock was sold at an average price of $137.00, for a total transaction of $438,400.00. Following the completion of the sale, the executive vice president directly owned 16,393 shares of the company's stock, valued at $2,245,841. The trade was a 16.33% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Akash J. Palkhiwala sold 2,500 shares of Qualcomm stock in a transaction on Monday, April 13th. The shares were sold at an average price of $130.34, for a total value of $325,850.00. Following the sale, the executive vice president directly owned 30,684 shares of the company's stock, valued at approximately $3,999,352.56. This trade represents a 7.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 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 currently owned by corporate insiders.

Institutional Trading of Qualcomm

Hedge funds have recently bought and sold shares of the stock. Harbor Capital Advisors Inc. lifted its holdings in Qualcomm by 72.2% during the third quarter. Harbor Capital Advisors Inc. now owns 155 shares of the wireless technology company's stock worth $26,000 after buying an additional 65 shares during the period. Cloud Capital Management LLC purchased a new stake in Qualcomm during the third quarter worth $27,000. Richardson Financial Services Inc. lifted its holdings in Qualcomm by 90.9% during the fourth quarter. Richardson Financial Services Inc. now owns 168 shares of the wireless technology company's stock worth $29,000 after buying an additional 80 shares during the period. Torren Management LLC purchased a new stake in Qualcomm during the fourth quarter worth $29,000. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in Qualcomm by 17,000.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company's stock worth $29,000 after buying an additional 170 shares during the period. Hedge funds and other institutional investors own 74.35% of the company's stock.

Qualcomm Stock Performance

The business has a fifty day simple moving average of $134.93 and a two-hundred day simple moving average of $155.16. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.51 and a quick ratio of 1.83. The company has a market cap of $188.58 billion, a PE ratio of 36.91 and a beta of 1.28.

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.

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