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Qualcomm
(NASDAQ:QCOM)
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Rating:70Outperform
Price Target:
$225.00
▲(65.20% Upside)
Action:Reiterated
Date:06/25/26
The score is primarily supported by strong underlying financial quality—high margins, robust free cash flow, and manageable leverage. It is tempered by cyclical near-term pressures highlighted in guidance (sequential revenue/EPS decline tied to memory and China handset dynamics) and a mixed technical picture, while valuation and the dividend are reasonable but not compelling enough to offset the near-term uncertainty.
Positive Factors
High gross and operating margins
Sustained high gross (~55%+) and strong operating margins indicate durable pricing power and differentiated IP. Over 2–6 months this supports reinvestment in R&D, funding for platform rollouts (data center, automotive) and resilience through industry cycles, preserving long-term profitability.
Negative Factors
Revenue and free-cash-flow cyclicality
Pronounced TTM revenue and FCF swings indicate sensitivity to end-market cycles and product mix. Over several months this raises execution risk for forecasts, complicates capital allocation and can compress margins when lower-margin product mix or channel destocking occurs.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross and operating margins
Sustained high gross (~55%+) and strong operating margins indicate durable pricing power and differentiated IP. Over 2–6 months this supports reinvestment in R&D, funding for platform rollouts (data center, automotive) and resilience through industry cycles, preserving long-term profitability.
Read all positive factors
Qualcomm Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business units, highlighting which segments drive growth and profitability, and indicating strategic focus areas.
Analyzes income from different business units, highlighting which segments drive growth and profitability, and indicating strategic focus areas.
Data provided by:
The Fly
The FlyQualcomm (QCOM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$199.62B
Dividend Yield2.01%
Average Volume (3M)23.73M
Price to Earnings (P/E)20.2
Beta (1Y)1.74
Revenue Growth5.21%
EPS Growth-6.72%
CountryUS
Employees49,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)9.33
Shares Outstanding1,054,000,000
10 Day Avg. Volume21,512,166
30 Day Avg. Volume23,729,164
Financial Highlights & Ratios
PEG Ratio-0.74
Price to Book (P/B)8.54
Price to Sales (P/S)4.09
P/FCF Ratio14.13
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue5.27
Enterprise Value/Gross Profit9.61
Enterprise Value/Ebitda16.53
Forecast
1Y Price Target
$219.14Price Target Upside60.89% Upside
Rating ConsensusHold
Number of Analyst Covering32
EPS Forecast (FY)10.76
Revenue Forecast (FY)$42.59B
Qualcomm Business Overview & Revenue Model
Company Description
QUALCOMM Incorporated is a company dedicated to developing and bringing to market fundamental technologies crucial for the global wireless communication industry. Its operations are structured into three primary segments: Qualcomm CDMA Technologie...
How the Company Makes Money
Qualcomm primarily makes money through two major revenue streams: (1) selling semiconductor products and (2) licensing its wireless intellectual property.
1) Semiconductor product sales (QCT): Qualcomm sells chipsets and related components—most n...
Qualcomm Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The call communicated a mix of strong strategic and executional wins (record automotive revenues, solid IoT growth, large shareholder returns, progress on data center/custom silicon and product platform performance) while also candidly describing near-term cyclical headwinds from memory supply/pricing dynamics that are depressing handset shipments—particularly in China—and driving below-demand shipments and softer guidance for the next quarter. Management expressed confidence that the China handset shipments will bottom in Q3 and highlighted long-term opportunities (agentic AI, 6G, data center) that support a positive multi-year outlook despite the short-term revenue and EPS decline.Positive Updates
Overall Quarterly Results
Reported revenue of $10.6 billion and non-GAAP EPS of $2.65 for fiscal Q2, with EPS coming in at the high end of guidance.
Negative Updates
Memory Industry Dynamics and Channel Inventory Drawdown
Memory supply/price volatility has led handset OEMs (notably in China) to reduce build plans and draw down channel inventory, causing Qualcomm to materially under-ship versus end-consumer demand in Q2 and Q3 guidance.
Read all updates
Q2-2026 Updates
Positive
Negative
Overall Quarterly Results
Reported revenue of $10.6 billion and non-GAAP EPS of $2.65 for fiscal Q2, with EPS coming in at the high end of guidance.
Read all positive updates
Company Guidance
Qualcomm guided fiscal Q3 revenues of $9.2 billion to $10.0 billion and non‑GAAP EPS of $2.10 to $2.30, with segment guidance of QTL revenues $1.15B–$1.35B (QTL EBT margin 67%–71%) and QCT revenues $7.9B–$8.5B (QCT EBT margin 25%–27%), including QCT handset revenues of ~$4.9B, QCT IoT growth of high single digits year‑over‑year, and QCT Automotive revenue growth of ~50% YoY; non‑GAAP operating expenses are forecast at about $2.6B, and management said China QCT Android shipments should bottom in Q3 with sequential recovery thereafter.Qualcomm Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
77
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 44.49B | 44.28B | 38.96B | 35.82B | 44.20B | 33.57B |
| Gross Profit | 24.38B | 24.55B | 21.90B | 19.95B | 25.57B | 19.30B |
| EBITDA | 14.17B | 14.93B | 12.74B | 9.95B | 17.25B | 12.41B |
| Net Income | 9.92B | 5.54B | 10.14B | 7.23B | 12.94B | 9.04B |
Balance Sheet | ||||||
| Total Assets | 57.14B | 50.14B | 55.15B | 51.04B | 49.01B | 41.24B |
| Cash, Cash Equivalents and Short-Term Investments | 9.80B | 12.48B | 13.30B | 11.32B | 6.38B | 12.41B |
| Total Debt | 15.27B | 16.37B | 15.44B | 16.07B | 16.16B | 16.30B |
| Total Liabilities | 29.86B | 28.94B | 28.88B | 29.46B | 31.00B | 31.29B |
| Stockholders Equity | 27.28B | 21.21B | 26.27B | 21.58B | 18.01B | 9.95B |
Cash Flow | ||||||
| Free Cash Flow | 12.50B | 12.82B | 11.16B | 9.85B | 6.83B | 8.65B |
| Operating Cash Flow | 14.29B | 14.01B | 12.20B | 11.30B | 9.10B | 10.54B |
| Investing Cash Flow | -1.06B | -800.00M | -3.62B | 762.00M | -5.80B | -3.36B |
| Financing Cash Flow | -14.98B | -13.20B | -9.27B | -6.66B | -7.20B | -6.80B |
Qualcomm Technical Analysis
Neutral
136.20
Price Trends
198.24
Negative
166.24
Positive
166.48
Positive
Market Momentum
-0.95
Positive
42.59
Neutral
18.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QCOM, the sentiment is Neutral. The current price of 136.2 is below the 20-day moving average (MA) of 217.33, below the 50-day MA of 198.24, and below the 200-day MA of 166.48, indicating a neutral trend. The MACD of -0.95 indicates Positive momentum. The RSI at 42.59 is Neutral, neither overbought nor oversold. The STOCH value of 18.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for QCOM.
Qualcomm Risk Analysis
Qualcomm disclosed 24 risk factors in its most recent earnings report. Qualcomm reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Qualcomm Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $850.49B | 175.16 | 8.08% | ― | 34.97% | 123.87% | |
74 Outperform | $259.76B | 48.47 | 32.49% | 3.11% | 14.89% | 10.49% | |
72 Outperform | $188.46B | 57.96 | 9.79% | 1.43% | 29.75% | 83.33% | |
70 Outperform | $199.62B | 20.23 | 40.19% | 2.01% | 5.21% | -6.72% | |
70 Outperform | $79.09B | 29.84 | 26.14% | 1.79% | 2.37% | 13.28% | |
63 Neutral | $644.94B | -212.45 | -2.95% | ― | 1.36% | 86.07% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
QCOM
Qualcomm
188.72
32.75
21.00%
AMD
Advanced Micro Devices
539.49
397.59
280.19%
ADI
Analog Devices
391.78
156.91
66.81%
INTC
Intel
131.72
109.32
488.04%
NXPI
NXP Semiconductors
278.37
63.70
29.67%
TXN
Texas Instruments
285.48
83.53
41.36%
Qualcomm Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Qualcomm to Acquire Modular in Stock-Based Deal
Positive
Jun 24, 2026
On June 21, 2026, Qualcomm entered into a definitive agreement to acquire Modular Inc., expanding its portfolio through a stock-based transaction aimed at integrating Modular’s assets and capabilities. As consideration, Qualcomm plans to iss...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.