Qualcomm (NASDAQ:QCOM) Trading Down 2.6% After Earnings Miss

Key Points

• Qualcomm shares fell 2.6% after quarterly EPS of $2.21 missed analysts’ $2.23 estimate, despite revenue of $9.95 billion exceeding expectations. Revenue declined 4% year over year, and fourth-quarter EPS guidance of $2.05–$2.25 came in below consensus.
• Handset weakness, Apple modem losses and rising memory costs are weighing on margins, though automotive and IoT growth helped offset some of the pressure. Qualcomm reported record automotive revenue, raised its automotive outlook to $7 billion and secured a multiyear BMW supply agreement.
• Analyst sentiment remains mixed, with several firms lowering price targets; the stock carries a consensus “Hold” rating and a $203.63 price target. Qualcomm also declared a quarterly dividend of $0.92 per share, representing a 2.4% yield.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s share price dropped 2.6% during trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $146.00 and last traded at $151.60. 24,152,024 shares changed hands during mid-day trading, an increase of 45% from the average session volume of 16,608,588 shares. The stock had previously closed at $155.68.

The wireless technology company reported $2.21 earnings per share for the quarter, missing the consensus estimate of $2.23 by ($0.02). Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The company had revenue of $9.95 billion for the quarter, compared to analysts' expectations of $9.69 billion. During the same quarter in the prior year, the business posted $2.77 earnings per share. The firm's revenue was down 4.0% compared to the same quarter last year. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS.

Qualcomm Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be issued a dividend of $0.92 per share. This represents a $3.68 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Thursday, September 3rd. Qualcomm's payout ratio is 40.00%.

Qualcomm News Summary

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Automotive and AI expansion support the longer-term outlook. Qualcomm reported record automotive revenue, raised its automotive outlook to $7 billion, and secured a multiyear agreement to supply BMW’s future digital cockpit and advanced driver-assistance platforms. The company also completed its acquisition of AI software company Modular and is targeting $40 billion in non-handset revenue by fiscal 2029. Qualcomm wins BMW chip supply deal
• Positive Sentiment: Revenue growth outside handsets provided a cushion. Automotive and IoT strength offset some handset weakness, helping quarterly revenue beat consensus estimates. This supports management’s strategy to diversify Qualcomm beyond smartphones. Qualcomm misses Q3 earnings estimates
• Neutral Sentiment: Analyst sentiment remains mixed. Susquehanna lowered its price target to $160 and adopted a neutral rating, while TD Cowen cut its target to $175 but retained a buy rating. Rosenblatt and Morgan Stanley also reduced targets, although both remain well above the current trading level. Analyst price target changes
• Negative Sentiment: Fiscal fourth-quarter guidance fell short of expectations. Qualcomm forecast EPS of $2.05–$2.25 versus consensus of $2.23, with revenue guidance broadly in line at $9.7–$10.5 billion. The outlook raised concerns about weaker profit growth. Qualcomm shares slide on higher costs and Apple weakness
• Negative Sentiment: Handset weakness, Apple-related losses and rising memory costs are pressuring margins. Handset revenue declined sharply, while Qualcomm expects faster losses of Apple modem business and warned that higher memory expenses may require price increases. Analysts also cited longer-term risks from customers developing custom silicon. Qualcomm faces margin pressures and custom silicon risks

Analyst Ratings Changes

Several analysts recently commented on the stock. Melius Research set a $220.00 price target on shares of Qualcomm in a research report on Monday, May 18th. TD Cowen lowered their target price on shares of Qualcomm from $225.00 to $175.00 and set a "buy" rating on the stock in a research note on Thursday. Lake Street Capital cut Qualcomm to a "hold" rating in a research report on Thursday, June 25th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $160.00 price target on shares of Qualcomm in a research note on Thursday, April 30th. Finally, JPMorgan Chase & Co. upped their price target on Qualcomm from $160.00 to $265.00 and gave the stock a "neutral" rating in a report on Friday, June 5th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, twenty-one have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $203.63.

Insider Activity at Qualcomm

In other news, EVP Heather S. Ace sold 3,200 shares of Qualcomm stock in a transaction dated 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 owned 39,735 shares in the company, valued at $7,065,677.70. This trade represents a 7.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano R. Amon sold 10,000 shares of the business's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $180.00, for a total transaction of $1,800,000.00. Following the sale, the chief executive officer directly owned 197,568 shares of the company's stock, valued at $35,562,240. This represents a 4.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 21,529 shares of company stock worth $4,011,441 in the last ninety days. 0.05% of the stock is owned by company insiders.

Institutional Investors Weigh In On Qualcomm

Large investors have recently bought and sold shares of the company. Your Advocates Ltd. LLP purchased a new stake in shares of Qualcomm during the first quarter worth approximately $26,000. Richardson Financial Services Inc. lifted its holdings in Qualcomm by 90.9% in the 4th quarter. Richardson Financial Services Inc. now owns 168 shares of the wireless technology company's stock valued at $29,000 after purchasing an additional 80 shares in the last quarter. Torren Management LLC acquired a new stake in Qualcomm during the 4th quarter worth $29,000. Caitong International Asset Management Co. Ltd boosted its stake in Qualcomm by 17,000.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company's stock worth $29,000 after purchasing an additional 170 shares during the last quarter. Finally, Birchwood Financial Partners Inc. acquired a new stake in Qualcomm during the 4th quarter worth $31,000. 74.35% of the stock is currently owned by hedge funds and other institutional investors.

Qualcomm Price Performance

The stock's fifty day moving average price is $201.26 and its 200-day moving average price is $167.94. The firm has a market cap of $159.79 billion, a PE ratio of 16.48, a price-to-earnings-growth ratio of 4.84 and a beta of 1.63. The company has a debt-to-equity ratio of 0.54, a current ratio of 2.37 and a quick ratio of 1.61.

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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