Qualcomm (NASDAQ:QCOM) Announces Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Qualcomm (NASDAQ:QCOM) issued its earnings results on Wednesday. The wireless technology company reported $2.17 EPS for the quarter, beating the consensus estimate of $2.16 by $0.01, FiscalAI reports. The company had revenue of $10.44 billion during the quarter, compared to the consensus estimate of $10.12 billion. Qualcomm had a return on equity of 38.36% and a net margin of 21.01%. The firm’s revenue for the quarter was down 8.4% compared to the same quarter last year. During the same period last year, the business posted $3.00 EPS.

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 Down 8.6%

Shares of Qualcomm stock traded down $14.94 on Thursday, reaching $158.25. The company’s stock had a trading volume of 27,424,101 shares, compared to its average volume of 15,117,626. The company has a market capitalization of $168.98 billion, a price-to-earnings ratio of 18.24, a P/E/G ratio of 3.70 and a beta of 1.70. 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 52 week low of $121.99 and a 52 week high of $259.92. The firm’s fifty day simple moving average is $178.23 and its two-hundred day simple moving average is $169.48.

Qualcomm Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Thursday, December 3rd will be issued a $0.92 dividend. This represents a $3.68 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Thursday, December 3rd. Qualcomm’s payout ratio is presently 42.59%.

Qualcomm News Summary

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm reported fiscal Q4 EPS of $2.17 and revenue of about $10.44 billion, edging past consensus. Automotive revenue surged 89%, while the company sees data-center revenue reaching $5 billion in fiscal 2027. QCOM Q4 Earnings Beat Estimates on Robust Automotive Growth
• Positive Sentiment: SpaceX selected Qualcomm’s Dragonwing platforms and software for Starlink Mobile’s planned U.S. 5G network, creating a significant infrastructure opportunity. Qualcomm signs major 5G infrastructure deal with SpaceX
• Negative Sentiment: Soft profit guidance and margin concerns are overshadowing the earnings beat. Revenue fell 8.4% year over year, with handset sales down sharply; investors are also concerned about declining Apple-related handset revenue and lower margins as newer businesses grow. Qualcomm Beat Earnings, But Its Fastest-Growing Businesses Have a Catch
• Negative Sentiment: Analysts have cut price targets: Susquehanna lowered its target to $165 and Rosenblatt reduced its target to $205, although Rosenblatt maintained a Buy rating. Broader chip-sector weakness and concerns about data-center demand added pressure. Qualcomm slides after earnings, leading post-election chip stock sell-off

Insider Activity at Qualcomm

In other news, CAO Patricia Grech sold 208 shares of the business’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $170.00, for a total transaction of $35,360.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano Amon sold 10,000 shares of the firm’s stock in a transaction on Friday, September 25th. The stock was sold at an average price of $200.00, for a total value of $2,000,000.00. Following the completion of the transaction, the chief executive officer owned 177,568 shares in the company, valued at approximately $35,513,600. This trade represents a 5.33% 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. In the last 90 days, insiders sold 30,258 shares of company stock worth $5,727,616. 0.05% of the stock is owned by insiders.

Analyst Ratings Changes

A number of analysts have commented on the stock. Cantor Fitzgerald decreased their price target on shares of Qualcomm from $200.00 to $165.00 and set a “neutral” rating for the company in a research note on Monday, July 27th. Weiss Ratings reissued a “hold (c)” rating on shares of Qualcomm in a research report on Monday, September 21st. Oppenheimer set a $200.00 price objective on shares of Qualcomm in a report on Monday, July 27th. Sanford C. Bernstein reduced their price objective on shares of Qualcomm from $165.00 to $155.00 and set a “market perform” rating for the company in a research note on Monday. Finally, Piper Sandler reaffirmed a “neutral” rating on shares of Qualcomm in a report on Thursday. Three 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 given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $199.97.

Qualcomm Company Profile

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.