Chip company Qualcomm (QCOM) is scheduled to announce its results for the first quarter of Fiscal 2026 on February 4. Ahead of Q1 FY26 earnings, top Cantor Fitzgerald analyst C.J. Muse reiterated a Hold rating on QCOM stock, saying he expects the company to offer a “solid beat” for the December quarter. However, Muse lowered the price target for QCOM stock to $160 from $185 to reflect the ongoing challenges. Let’s discuss the analyst’s views on Qualcomm.
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Meanwhile, Wall Street expects Qualcomm to report Q1 FY26 earnings per share of $3.39, reflecting a 0.6% year-over-year decline. Meanwhile, revenue is projected to rise 4% to $12.14 billion.
Qualcomm has long been a major chip provider in the mobile handset market. However, the company has been expanding beyond this business into areas such as automobiles and the Internet of Things (IoT). QCOM stock has declined 12% over the past year due to concerns about the weakness in the smartphone end market and loss of business as Apple (AAPL) shifts to its in-house modems.
Top Cantor Analyst’s Views on QCOM Stock
Muse expects Qualcomm to surpass the Street’s Q1 FY26 expectations. However, he expects the company’s Q2 FY26 outlook to slightly lag the Street’s estimates and Q3 guidance to be significantly below consensus.
Moreover, the 5-star analyst expects a major reset in Qualcomm’s 2026 outlook, based on a lower share of Apple’s business (Qualcomm expects only 20% share in calendar year 2026) and parts of Samsung’s (SSNLF) modem moving to in-house products. Muse expects QCOM’s outlook to also be hit by the impact of shortages across DRAM, NAND, and substrates on China’s handset business.
Overall, Muse projects 2026 handset revenue to decline by 20%, QCT segment revenue to fall by 10%, and total revenue to drop by 9%. Given the significant reset to estimates and ongoing pressures in the smartphone market, the analyst remains sidelined on QCOM stock. Also, based on his expectation of only $10 in earnings power in 2026, Muse slashed his price target to $160. Muse’s revised price target reflects a 16x price-to-earnings multiple (2026 earnings).
Is Qualcomm Stock a Buy, Sell, or Hold?
Heading into Q1 FY26 earnings, Wall Street has a Moderate Buy consensus rating on Qualcomm stock based on 10 Buys, six Holds, and one Sell recommendation. The average QCOM stock price target of $193.33 indicates 27% upside potential.
