Qualcomm (NASDAQ:QCOM – Get Free Report) issued its quarterly earnings data on Wednesday. The wireless technology company reported $2.17 EPS for the quarter, beating analysts’ consensus estimates of $2.16 by $0.01, FiscalAI reports. Qualcomm had a return on equity of 31.91% and a net margin of 31.60%. The business had revenue of $10.44 billion for the quarter, compared to analyst estimates of $10.12 billion. During the same quarter in the prior year, the firm posted $3.00 EPS. The firm’s revenue for the quarter was down 8.4% on a year-over-year basis.
Here are the key takeaways from Qualcomm’s conference call:
- Qualcomm reported fiscal Q4 revenue of $10.4 billion and non-GAAP EPS of $2.17, but QCT handset revenue was pressured by memory-related weakness. For fiscal Q1, it expects handset revenue to decline by a mid-single-digit percentage sequentially, including the continued Apple product ramp-down; management assumes the overall handset market will be flat to down in calendar 2027.
- Data center is beginning to contribute revenue, with more than $650 million expected in fiscal Q1 and targets of $5 billion in fiscal 2027 and a $7 billion exit run rate. Management says demand and order coverage support further growth, though supply may constrain upside and custom silicon will dilute gross margins while contributing to operating margins.
- Automotive revenue reached $2 billion in Q4, up 89% year over year, and the business exited fiscal 2026 at an approximately $8 billion annualized run rate. Qualcomm expects fiscal 2027 non-handset QCT revenue—including automotive, IoT, and data center—to grow more than 60% and exceed half of QCT revenue.
- Qualcomm renewed licensing agreements with Apple, Huawei, and Transsion, and said its QTL revenue run rate remains unchanged. The company said it has no major handset OEM renewals scheduled for the next several years.
- SpaceX selected Qualcomm to supply technology for Starlink Mobile’s U.S. terrestrial 5G network, with deployment beginning in 2027 and revenue expected mainly from fiscal 2028. Qualcomm will provide radio and digital-unit silicon along with Layer 1 software under a multi-year agreement.
Qualcomm Stock Performance
Shares of QCOM stock traded up $9.69 during mid-day trading on Friday, reaching $166.44. The stock had a trading volume of 10,668,071 shares, compared to its average volume of 15,160,977. Qualcomm has a one year low of $121.99 and a one year high of $259.92. The firm has a market cap of $177.73 billion, a PE ratio of 13.11, a P/E/G ratio of 3.90 and a beta of 1.70. The firm’s 50 day simple moving average is $178.09 and its 200 day simple moving average is $169.47. The company has a quick ratio of 1.28, a current ratio of 2.02 and a debt-to-equity ratio of 0.46.
Qualcomm Announces Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Shareholders of record on Thursday, December 3rd will be given a $0.92 dividend. The ex-dividend date is Thursday, December 3rd. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.2%. Qualcomm’s dividend payout ratio (DPR) is currently 28.98%.
Qualcomm News Summary
Here are the key news stories impacting Qualcomm this week:
- Positive Sentiment: Fiscal Q4 adjusted EPS of $2.17 narrowly topped estimates, while revenue of $10.44 billion exceeded consensus. Automotive revenue surged 89%, offering evidence of growth beyond smartphones. Article: QCOM Q4 Earnings Beat Estimates on Robust Automotive Growth
- Positive Sentiment: Qualcomm’s agreement to supply technology for SpaceX’s planned terrestrial 5G network could provide a new customer and longer-term growth opportunity. Article: SpaceX Qualcomm 5G Deal
- Neutral Sentiment: Alphabet disclosed a $548 million Qualcomm stake, a notable investment but not necessarily a signal of fresh buying or a near-term change in Qualcomm’s business outlook. Article: Alphabet discloses Qualcomm stake
- Negative Sentiment: Investors are focused on declining handset sales and soft profit guidance. Earnings fell 28% year over year, and Apple’s move toward in-house modems and weak Chinese demand add pressure to Qualcomm’s core phone-chip business. Article: Qualcomm slumps as weak smartphone chip sales overshadow data-center momentum
- Negative Sentiment: Rising component costs and investment in data centers may weigh on margins. Several analysts cut price targets, and Seeking Alpha downgraded QCOM to Hold, citing limited near-term catalysts and a long wait for new businesses to contribute meaningfully. Article: Qualcomm: Right Tech, Wrong Market Timing
Insider Transactions at Qualcomm
In other Qualcomm news, CEO Cristiano Amon sold 10,000 shares of Qualcomm stock in a transaction on Friday, September 25th. The shares were sold at an average price of $200.00, for a total transaction of $2,000,000.00. Following the sale, the chief executive officer owned 177,568 shares in the company, valued at $35,513,600. The trade was a 5.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ann Chaplin sold 1,827 shares of Qualcomm stock in a transaction dated Friday, October 16th. The shares were sold at an average price of $174.75, for a total transaction of $319,268.25. Following the sale, the executive vice president owned 25,770 shares in the company, valued at approximately $4,503,307.50. This trade represents a 6.62% 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. Insiders sold 30,258 shares of company stock valued at $5,727,616 in the last ninety days. 0.05% of the stock is owned by company insiders.
Analyst Ratings Changes
Several equities research analysts recently weighed in on QCOM shares. JPMorgan Chase & Co. reduced their target price on Qualcomm from $215.00 to $200.00 and set a “neutral” rating for the company in a report on Thursday. Arete Research upgraded shares of Qualcomm to a “strong-buy” rating in a report on Friday, October 16th. Freedom Capital raised Qualcomm from a “hold” rating to a “strong-buy” rating in a research report on Friday, August 7th. Benchmark dropped their price objective on Qualcomm from $300.00 to $270.00 and set a “buy” rating on the stock in a research note on Monday, July 27th. Finally, UBS Group dropped their price objective on Qualcomm from $185.00 to $180.00 and set a “neutral” rating on the stock in a research note on Thursday. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-one have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Qualcomm has a consensus rating of “Hold” and a consensus price target of $197.55.
Check Out Our Latest Report on Qualcomm
Qualcomm Company Profile
Qualcomm Incorporated is a technology company that develops wireless communications technologies and semiconductor products. Its chips and related systems are used in smartphones and other connected devices, with products spanning mobile processors, modem-radio frequency systems, and connectivity solutions. The Snapdragon brand includes platforms for mobile devices as well as computing, automotive, and extended-reality applications.
Qualcomm also develops technology for automotive systems and the Internet of Things, including connectivity and processing solutions for vehicles, industrial equipment, and consumer devices.
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