Qualcomm (NASDAQ:QCOM) Stock Price Up 4% Following Strong Earnings

Key Points

• Stock up 4% after Q2 results: Qualcomm reported EPS of $2.65 vs. $2.58 expected and revenue of $10.60B (vs. $10.59B), with shares trading around $156 and volume up ~157%.
• Management boosted shareholder returns by raising the quarterly dividend to $0.92 and authorizing a $20 billion buyback (up to ~14.5% of shares outstanding).
• Reports that Qualcomm is working with OpenAI (and MediaTek) on AI‑native smartphone processors plus Q3 guidance of $2.10–$2.30 EPS lift long‑term AI growth expectations, though memory shortages and mixed analyst ratings pose near‑term risks.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s stock price rose 4% during mid-day trading on Wednesday following a stronger than expected earnings report. The company traded as high as $157.29 and last traded at $156.00. Approximately 30,891,165 shares traded hands during trading, an increase of 157% from the average daily volume of 11,996,670 shares. The stock had previously closed at $150.00.

The wireless technology company reported $2.65 EPS for the quarter, topping the consensus estimate of $2.58 by $0.07. The firm had revenue of $10.60 billion for the quarter, compared to the consensus estimate of $10.59 billion. Qualcomm had a return on equity of 44.09% and a net margin of 11.96%.Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS.

Qualcomm Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th will be given a dividend of $0.92 per share. This represents a $3.68 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Thursday, June 4th. This is a positive change from Qualcomm's previous quarterly dividend of $0.89. Qualcomm's payout ratio is presently 73.55%.

Qualcomm announced that its board has authorized a stock buyback plan on Tuesday, March 17th that permits the company to buyback $20.00 billion in outstanding shares. This buyback authorization permits the wireless technology company to repurchase up to 14.5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's board believes its stock is undervalued.

More Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Reports that Qualcomm is working with OpenAI (and MediaTek) to develop AI-native smartphone processors for mass‑market devices (targeting a 2028 timeline) amplify Qualcomm’s long‑term TAM for on‑device AI and mobile AI compute. Qualcomm Eyes AI Native Smartphones
• Positive Sentiment: Analyst reports and media coverage claiming an OpenAI collaboration pushed bullish sentiment and drove premarket buying, reinforcing hopes that Qualcomm can leverage AI partnerships to offset handset headwinds. Qualcomm Shares Jump Premarket
• Neutral Sentiment: Qualcomm posted its official Q2 fiscal earnings release on the company IR site and filed the Form 8‑K; investors will parse the release and guidance for signs of handset and AI momentum. Earnings Release Available
• Neutral Sentiment: Pre‑earnings previews highlight key items investors will watch tonight (revenue mix, handset OEM trends, memory-related inventory dynamics, and the company’s Q2 guidance range). Q2 Pre‑Earnings Brief
• Neutral Sentiment: Broader macro commentary points to AI investment as a material growth driver for the sector — a supportive backdrop if Qualcomm can convert partnerships into product wins. AI Investment Boosts Growth
• Negative Sentiment: Analysts and articles warn a memory component shortage and related supply dynamics could pressure Q2 revenue — a short‑term headwind that could show up in the release and damp investor reaction. Memory Shortage Pressures Q2
• Negative Sentiment: Erste Group trimmed its FY2026–FY2027 EPS forecasts for Qualcomm, signaling some analyst caution on near‑term earnings power and giving investors a lower bar for guidance. Erste Lowers Estimates

Analyst Ratings Changes

A number of brokerages have weighed in on QCOM. Zacks Research downgraded shares of Qualcomm from a "hold" rating to a "strong sell" rating in a research note on Tuesday, January 27th. Rosenblatt Securities cut their target price on shares of Qualcomm from $225.00 to $190.00 and set a "buy" rating for the company in a research report on Thursday, February 5th. DZ Bank upgraded Qualcomm to a "strong-buy" rating in a research note on Tuesday, February 10th. Daiwa Securities Group cut shares of Qualcomm from an "outperform" rating to a "neutral" rating and set a $140.00 target price on the stock. in a research note on Wednesday, February 11th. Finally, Mizuho lowered their target price on shares of Qualcomm from $160.00 to $140.00 and set a "neutral" rating on the stock in a research note on Thursday, February 5th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, thirteen have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $158.25.

Insider Transactions at Qualcomm

In related news, EVP Heather S. Ace sold 3,200 shares of the stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $137.00, for a total value of $438,400.00. Following the sale, the executive vice president directly owned 16,393 shares of the company's stock, valued at $2,245,841. This represents a 16.33% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Akash J. Palkhiwala sold 2,500 shares of the stock in a transaction dated Monday, April 13th. The stock was sold at an average price of $130.34, for a total transaction of $325,850.00. Following the completion of the sale, the executive vice president directly owned 30,684 shares in the company, valued at $3,999,352.56. This trade represents a 7.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 9,118 shares of company stock worth $1,233,705 over the last three months. 0.05% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Qualcomm

Several institutional investors have recently bought and sold shares of the company. Aljian Capital Management LLC increased its holdings in Qualcomm by 4.8% in the first quarter. Aljian Capital Management LLC now owns 9,751 shares of the wireless technology company's stock valued at $1,256,000 after buying an additional 443 shares in the last quarter. Addison Capital Co increased its holdings in Qualcomm by 3.5% in the first quarter. Addison Capital Co now owns 34,465 shares of the wireless technology company's stock valued at $4,438,000 after buying an additional 1,180 shares in the last quarter. Cairn Investment Group Inc. increased its holdings in Qualcomm by 0.7% in the first quarter. Cairn Investment Group Inc. now owns 34,963 shares of the wireless technology company's stock valued at $4,503,000 after buying an additional 230 shares in the last quarter. Bank of Stockton increased its holdings in Qualcomm by 2.9% in the first quarter. Bank of Stockton now owns 12,010 shares of the wireless technology company's stock valued at $1,547,000 after buying an additional 339 shares in the last quarter. Finally, Clearwave Capital LLC increased its holdings in Qualcomm by 24.0% in the first quarter. Clearwave Capital LLC now owns 1,801 shares of the wireless technology company's stock valued at $232,000 after buying an additional 349 shares in the last quarter. 74.35% of the stock is currently owned by institutional investors and hedge funds.

Qualcomm Stock Up 4.0%

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 business's fifty day simple moving average is $134.67 and its two-hundred day simple moving average is $155.16. The company has a market cap of $166.45 billion, a PE ratio of 32.23 and a beta of 1.28.

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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