Qualcomm (NASDAQ:QCOM) Issues Earnings Results

Qualcomm (NASDAQ:QCOM) announced its quarterly earnings results on Wednesday. The wireless technology company reported $2.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.16 by $0.01, FiscalAI reports. The company had revenue of $10.44 billion for the quarter, compared to the consensus estimate of $10.12 billion. Qualcomm had a net margin of 21.01% and a return on equity of 38.36%.

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 Trading Up 5.3%

Shares of QCOM stock traded up $8.76 during mid-day trading on Wednesday, hitting $173.19. 22,074,638 shares of the company’s stock were exchanged, compared to its average volume of 15,064,607. Qualcomm has a fifty-two week low of $121.99 and a fifty-two week high of $259.92. The stock has a 50-day simple moving average of $178.23 and a two-hundred day simple moving average of $169.48. The company has a quick ratio of 1.28, a current ratio of 2.02 and a debt-to-equity ratio of 0.46. The stock has a market cap of $184.94 billion, a price-to-earnings ratio of 20.05, a PEG ratio of 3.65 and a beta of 1.70.

Qualcomm Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Shareholders of record on Thursday, December 3rd will be paid a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Thursday, December 3rd. Qualcomm’s dividend payout ratio is currently 42.59%.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on the stock. Rosenblatt Securities reissued a “buy” rating and set a $235.00 price objective on shares of Qualcomm in a research note on Wednesday, September 9th. KeyCorp reaffirmed a “sector weight” rating on shares of Qualcomm in a research note on Wednesday, September 9th. Piper Sandler began coverage on Qualcomm in a report on Wednesday, September 9th. They set a “neutral” rating and a $190.00 target price on the stock. Royal Bank Of Canada raised their price target on Qualcomm from $160.00 to $180.00 and gave the stock a “sector perform” rating in a research report on Wednesday, September 9th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Qualcomm in a research report on Monday, September 21st. Three analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-one have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, Qualcomm has a consensus rating of “Hold” and a consensus price target of $205.48.

Insiders Place Their Bets

In related news, EVP Akash J. Palkhiwala sold 2,500 shares of the stock in a transaction dated Tuesday, October 20th. The stock was sold at an average price of $175.06, for a total transaction of $437,650.00. Following the transaction, the executive vice president directly owned 20,799 shares in the company, valued at approximately $3,641,072.94. This represents a 10.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ann C. 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 value of $319,268.25. Following the completion of the sale, the executive vice president owned 25,770 shares of the company’s stock, valued at $4,503,307.50. This trade represents a 6.62% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 30,258 shares of company stock worth $5,727,616 in the last three months. Company insiders own 0.05% of the company’s stock.

Key Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: SpaceX selected Qualcomm’s Dragonwing platforms and software for Starlink Mobile’s planned U.S. terrestrial 5G network under a multiyear agreement. Qualcomm called it its largest 5G initiative to date, potentially opening a sizable opportunity beyond smartphones. SpaceX signs deal with Qualcomm to provide network technology for U.S. mobile service
• Positive Sentiment: Automotive chip revenue nearly doubled, offering evidence of growth in a business outside Qualcomm’s traditional handset market—though it remains too small to offset the phone-chip decline so far. Qualcomm’s Phone Chip Sales Drop 26%: Rapid Earnings Reaction
• Negative Sentiment: Qualcomm beat quarterly adjusted earnings expectations by a penny, reporting $2.17 per share, but revenue of $10.32 billion fell 8% year over year. Investors focused on management’s muted forecast, with a memory shortage weighing on smartphone sales. Qualcomm issues disappointing earnings forecast as memory shortage weighs on smartphone sales
• Negative Sentiment: Handset weakness is the central near-term concern: phone-chip sales dropped about 26%, dragging down total revenue and chip margins. The automotive business has not yet grown enough to fill the gap. Qualcomm’s Phone Chip Sales Drop 26%: Rapid Earnings Reaction

About Qualcomm

Qualcomm Incorporated is a technology company that develops and commercializes wireless communications and semiconductor technologies. Through Qualcomm Technologies, Inc, the company designs integrated circuits, system software and related platforms used in smartphones, personal computers, automobiles, industrial equipment, consumer devices and other connected products. Its Snapdragon platforms support mobile computing, connectivity, artificial intelligence and multimedia applications, while its broader portfolio includes radio-frequency systems, networking and edge-computing technologies.

Qualcomm also operates a significant technology-licensing business through its Qualcomm Technology Licensing segment.