Qualcomm (QCOM)
NASDAQ:QCOM
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Qualcomm
(NASDAQ:QCOM)
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Rating:82Outperform
Price Target:
$244.00
▲(79.15% Upside)
Action:Reiterated
Date:05/13/26
The score is driven by very attractive valuation (low P/E with a dividend) and strong technical momentum, supported by solid underlying profitability and cash generation. Offsetting these positives are near-term cyclical headwinds highlighted in guidance (sequential revenue/EPS decline tied to China handset and memory/channel dynamics), which temper the otherwise strong setup.
Positive Factors
High gross and operating margins
Sustained gross margins near ~55% and healthy EBIT margins reflect material pricing power from integrated SoCs and high-margin licensing. This durable margin structure supports R&D, competitive platform development and resilient profitability through product mix shifts over multi-year cycles.
Negative Factors
Revenue and earnings cyclicality
Revenue and earnings have shown sharp TTM swings, driven by device cycles and mix. This structural cyclicality reduces predictability of cash flows and margins over 2–6 months, complicates investment timing and can force variable capital allocation despite otherwise strong fundamentals.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross and operating margins
Sustained gross margins near ~55% and healthy EBIT margins reflect material pricing power from integrated SoCs and high-margin licensing. This durable margin structure supports R&D, competitive platform development and resilient profitability through product mix shifts over multi-year cycles.
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
$214.64B
Dividend Yield2.01%
Average Volume (3M)22.65M
Price to Earnings (P/E)4.6
Beta (1Y)1.60
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. Volume33,744,056
30 Day Avg. Volume22,645,148
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 Cap1.01
Enterprise Value/Revenue4.86
Enterprise Value/Gross Profit8.86
Enterprise Value/Ebitda16.20
Forecast
1Y Price Target
$178.81Price Target Upside31.28% Upside
Rating ConsensusHold
Number of Analyst Covering32
EPS Forecast (FY)10.76
Revenue Forecast (FY)$42.66B
Qualcomm Business Overview & Revenue Model
Company Description
QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. The company operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (...
How the Company Makes Money
Qualcomm makes money primarily through two major businesses: (1) selling semiconductor products and related software, and (2) licensing its intellectual property.
1) Semiconductor products (QCT): A substantial portion of Qualcomm’s revenue comes ...
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 | 13.34B | 14.93B | 12.74B | 9.95B | 17.25B | 11.37B |
| 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
Positive
136.20
Price Trends
151.49
Positive
152.15
Positive
158.27
Positive
Market Momentum
17.25
Positive
58.40
Neutral
27.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QCOM, the sentiment is Positive. The current price of 136.2 is below the 20-day moving average (MA) of 183.13, below the 50-day MA of 151.49, and below the 200-day MA of 158.27, indicating a bullish trend. The MACD of 17.25 indicates Positive momentum. The RSI at 58.40 is Neutral, neither overbought nor oversold. The STOCH value of 27.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $214.64B | 4.59 | 40.19% | 2.01% | 5.21% | -6.72% | |
79 Outperform | $204.35B | 45.73 | 7.92% | 1.43% | 25.91% | 74.58% | |
78 Outperform | $686.47B | 60.29 | 8.05% | ― | 34.97% | 123.87% | |
77 Outperform | $73.60B | 10.55 | 26.14% | 1.79% | 2.37% | 13.28% | |
74 Outperform | $275.51B | 28.56 | 32.49% | 3.11% | 14.89% | 10.49% | |
63 Neutral | $543.66B | -14.70 | -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
195.61
45.31
30.15%
AMD
Advanced Micro Devices
414.05
300.54
264.77%
ADI
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414.31
193.19
87.37%
INTC
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110.80
89.53
420.92%
NXPI
NXP Semiconductors
294.28
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42.75%
TXN
Texas Instruments
302.31
118.75
64.69%
Qualcomm Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Qualcomm Shareholders Approve Board, Pay, and Incentive Plan
Positive
Mar 20, 2026
Qualcomm shareholders met on March 17, 2026, for the company’s 2026 annual meeting, where they re-elected the full slate of 11 board nominees, each receiving more than a majority of votes cast, and ratified PricewaterhouseCoopers as independ...
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.