Qualcomm (QCOM) is set to release its first-quarter fiscal 2026 results after market close on Wednesday, February 1. Analysts expect declining earnings and modestly rising revenues, leading to a Moderate Buy consensus rating on the stock. QCOM stock has lost nearly 11% over the past year amid a lingering memory chip shortage, pricing pressures, and sluggish smartphone demand weighing on chipmakers like Qualcomm.
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The company develops semiconductors, software, and wireless technologies primarily for mobile phones. Its core segments are QCT (Qualcomm CDMA Technologies) and QTL (Qualcomm Technology Licensing). Investors will watch Qualcomm’s strategy for navigating chip shortages and diversifying QCT revenues into automotive and IoT (Internet of Things) verticals.
Expectations from Qualcomm
The Street expects Qualcomm to post adjusted earnings per share (EPS) of $3.39, lower than the prior year period’s figure of $3.41. Sales are forecast to rise 3.8% year-over-year to $12.12 billion. Notably, QCOM has beaten earnings expectations for eight straight quarters.
Investors will compare results against the company’s guidance. In its Q4 FY25 earnings, Qualcomm projected Q1 revenues of $11.8 to $12.6 billion, QCT projected between $10.3 and $10.9 billion, and adjusted EPS of $3.30–$3.50.
iPhone maker Apple (AAPL) remains one of Qualcomm’s largest customers, with a major contribution to the QCT segment. However, Apple is set to start producing its own modems, which could impact Qualcomm’s sales. Samsung (SSNLF) and Xiaomi contribute smaller shares but Qualcomm is actively working to reduce Apple reliance and diversify its revenue streams.
Analysts View Ahead of Results
Analysts remain divided on Qualcomm’s outlook. Heading into the Q1 print, four analysts rated it a “Hold”, and one analyst each rated it a Buy and Sell. Following an industry call on handsets, Mizuho Securities analyst Vijay Rakesh kept his Hold rating but slashed the price target from $175 to $160, implying 5.6% upside potential. He projects global handset shipments to decline 4% year-over-year in 2026, with steeper drops in the second half from memory shortages and pricing pressures.
UBS analyst Timothy Arcuri also cut his price target from $185 to $160, citing similar reasons. Meanwhile, Wells Fargo analyst Aaron Rakers reiterated his Sell rating but raised the price target from $140 to $165, implying 8.9% upside potential.
In contrast, Rosenblatt Securities analyst Kevin Cassidy reiterated his Buy rating and Street-high price target of $225, implying 48.4% upside potential. He expects positive earnings from semiconductor stocks under his coverage. He noted that the CES 2026 event highlighted a boom in network edge AI products like wearables, AI companions, health monitors, robotics, entertainment, security, and gaming.
Is QCOM a Good Stock to Buy?
On TipRanks, Qualcomm has a Moderate Buy consensus rating based on 10 Buys, six Holds, and one Sell rating. The average Qualcomm price target of $193.33 implies 27.5% upside potential from current levels.
