Qualcomm (NASDAQ:QCOM) Trading Up 15.1% After Better-Than-Expected Earnings

Key Points

• Shares jumped 15.1% after Qualcomm reported Q2 EPS of $2.65 versus a $2.56 consensus and revenue of $10.60 billion (essentially in line), trading on unusually heavy volume despite revenue declining about 3.5% year‑over‑year.
• Qualcomm boosted shareholder returns, raising the quarterly dividend to $0.92 (from $0.89) and the Board authorized a $20 billion share buyback (up to ~14.5% of shares outstanding).
• Management set Q3 guidance of $2.10–$2.30 EPS (below Street estimates) and flagged handset weakness, but highlighted a new data‑center chip shipping to a “large hyperscaler” this year and drew analyst upgrades around the AI/data‑center opportunity.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s share price traded up 15.1% on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $186.89 and last traded at $179.58. 60,952,373 shares traded hands during trading, an increase of 380% from the average session volume of 12,685,595 shares. The stock had previously closed at $156.00.

The wireless technology company reported $2.65 EPS for the quarter, beating analysts' consensus estimates of $2.56 by $0.09. The company had revenue of $10.60 billion during 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%.The company's quarterly revenue was down 3.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.85 EPS. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS.

Qualcomm Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Thursday, June 4th will be given a $0.92 dividend. This is a positive change from Qualcomm's previous quarterly dividend of $0.89. The ex-dividend date is Thursday, June 4th. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.0%. Qualcomm's dividend payout ratio is 73.55%.

Qualcomm declared that its Board of Directors has authorized a share buyback program on Tuesday, March 17th that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the wireless technology company to buy up to 14.5% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's management believes its stock is undervalued.

Key Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: CEO said Qualcomm will begin shipping a custom data‑center chip to a “large hyperscaler” this year, shifting investor focus to a new, higher‑margin growth vector. Qualcomm shares jump as optimism on smartphones, AI chips outweigh dismal forecast
• Positive Sentiment: Multiple analysts raised ratings/targets after the quarter (including a Benchmark upgrade to $225 and several firms lifting targets toward $160–$190), signaling stronger Wall Street conviction around the AI/data‑center story. Benzinga
• Positive Sentiment: Automotive, IoT and data‑center commentary helped offset handset weakness; management flagged accelerating automotive revenue and a broader AI strategy. Qualcomm tops estimates on automotive surge, eyes data center opportunity
• Neutral Sentiment: Q2 results: EPS beat modestly ($2.65 vs. ~$2.56 consensus) while revenue was essentially in line but down year‑over‑year; the quarter showed profitability strength but mixed top‑line trends. Qualcomm Q2 release and call
• Neutral Sentiment: Technical charts and momentum indicators are flashing a potential breakout after the stock lagged peers, which can attract momentum traders; see technical analysis coverage. Is Qualcomm Ready for Primetime? What the Technicals Say.
• Negative Sentiment: Guidance for Q3 came in below Street estimates (revenue and EPS ranges), driven in part by a memory‑chip shortage that could pressure handset demand — the immediate outlook remains cautious. Qualcomm quarterly forecast underwhelms, but CEO says worst of memory crunch over
• Negative Sentiment: Handset revenue weakness (double‑digit declines cited by some outlets) and lowered near‑term estimates from a few research shops underline execution risks if smartphone recovery timing slips. Qualcomm surges despite Q2 results featuring 13% decline in handset revenue

Analyst Upgrades and Downgrades

QCOM has been the subject of several recent analyst reports. Royal Bank Of Canada raised their target price on shares of Qualcomm from $150.00 to $175.00 and gave the stock a "sector perform" rating in a report on Thursday. Argus reduced their price target on shares of Qualcomm from $205.00 to $180.00 and set a "buy" rating for the company in a research report on Friday, February 6th. Piper Sandler reaffirmed an "overweight" rating and issued a $200.00 price objective on shares of Qualcomm in a research note on Thursday, February 5th. Summit Insights upgraded shares of Qualcomm from a "hold" rating to a "buy" rating in a research report on Thursday. Finally, DZ Bank raised shares of Qualcomm to a "strong-buy" rating in a research note on Tuesday, February 10th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, fifteen have given a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $165.08.

Insider Activity at Qualcomm

In related news, EVP Heather S. Ace sold 3,200 shares of the business's stock in a transaction that occurred on Monday, February 9th. The shares were 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Akash J. Palkhiwala sold 2,500 shares of the company's stock in a transaction that occurred on Monday, April 13th. The shares were sold at an average price of $130.34, for a total transaction of $325,850.00. Following the completion of the transaction, the executive vice president owned 30,684 shares in the company, valued at approximately $3,999,352.56. This represents a 7.53% decrease in their position. 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 90 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

Several hedge funds and other institutional investors have recently modified their holdings of the company. First Horizon Corp lifted its holdings in shares of Qualcomm by 181.4% during the 1st quarter. First Horizon Corp now owns 33,224 shares of the wireless technology company's stock valued at $4,279,000 after buying an additional 21,417 shares during the last quarter. Mosaic Family Wealth Partners LLC acquired a new position in Qualcomm in the first quarter worth approximately $405,000. Stronghold Wealth Management L.L.C. raised its position in Qualcomm by 3.5% during the first quarter. Stronghold Wealth Management L.L.C. now owns 2,815 shares of the wireless technology company's stock valued at $363,000 after acquiring an additional 94 shares in the last quarter. Kestra Advisory Services LLC lifted its stake in Qualcomm by 12.3% in the first quarter. Kestra Advisory Services LLC now owns 166,111 shares of the wireless technology company's stock valued at $21,392,000 after acquiring an additional 18,196 shares during the last quarter. Finally, Money Concepts Capital Corp lifted its stake in Qualcomm by 25.7% in the first quarter. Money Concepts Capital Corp now owns 2,729 shares of the wireless technology company's stock valued at $351,000 after acquiring an additional 558 shares during the last quarter. 74.35% of the stock is currently owned by hedge funds and other institutional investors.

Qualcomm Price Performance

The company's 50-day simple moving average is $134.93 and its 200 day simple moving average is $155.16. The company has a market capitalization of $191.61 billion, a P/E ratio of 37.10 and a beta of 1.28. The company has a quick ratio of 1.83, a current ratio of 2.51 and a debt-to-equity ratio of 0.64.

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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