Qualcomm (NASDAQ:QCOM) Releases Earnings Results

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

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 Stock Up 5.3%

QCOM traded up $8.76 during trading hours 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. 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. The stock’s 50-day moving average is $178.23 and its two-hundred day moving average is $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. Qualcomm has a 1-year low of $121.99 and a 1-year high of $259.92.

Qualcomm Dividend Announcement

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

Insider Buying and Selling

In other Qualcomm news, EVP Akash Palkhiwala sold 2,500 shares of the business’s stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $182.85, for a total transaction of $457,125.00. Following the transaction, the executive vice president owned 18,184 shares of the company’s stock, valued at $3,324,944.40. The trade was a 12.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ann Chaplin sold 1,827 shares of the business’s stock in a transaction on Friday, October 16th. The stock was sold at an average price of $174.75, for a total transaction of $319,268.25. Following the transaction, the executive vice president owned 25,770 shares in the company, valued at approximately $4,503,307.50. The trade was a 6.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 30,258 shares of company stock valued at $5,727,616 in the last ninety days. 0.05% of the stock is owned by company insiders.

Qualcomm News Roundup

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

Analyst Upgrades and Downgrades

Several brokerages have recently commented on QCOM. Oppenheimer set a $200.00 price target on shares of Qualcomm in a research report on Monday, July 27th. Sanford C. Bernstein decreased their price target on shares of Qualcomm from $165.00 to $155.00 and set a “market perform” rating for the company in a report on Monday. Weiss Ratings restated a “hold (c)” rating on shares of Qualcomm in a research report on Monday, September 21st. TD Cowen raised their price objective on Qualcomm from $175.00 to $200.00 and gave the stock a “buy” rating in a research note on Monday, October 19th. Finally, Royal Bank Of Canada lifted their target price on Qualcomm from $160.00 to $180.00 and gave the stock a “sector perform” rating in a report on Wednesday, September 9th. Three research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, twenty-one have given a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $205.48.

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.