Qualcomm (QCOM) Stock: Earnings Beat Fails to Impress Wall Street

TLDR

Table of Contents

Qualcomm reported Q1 fiscal 2026 earnings of $3.50 per share, beating estimates by $0.10
Revenue hit $12.25 billion, topping the $12.11 billion consensus
Q2 guidance of $10.20B-$11.00B revenue fell short of $11.02B analyst expectations
Stock traded at $148.89 with volume nearly double the average after the announcement
Company maintains $0.89 quarterly dividend with analyst price targets averaging $188.50

Qualcomm posted better-than-expected results for its first fiscal quarter of 2026. The chipmaker reported earnings per share of $3.50 on February 4th.

QUALCOMM Incorporated, QCOM

Analysts had projected $3.40 per share. Revenue reached $12.25 billion versus expectations of $12.11 billion.

The beat didn’t prevent a stock decline. Forward guidance came in below Wall Street forecasts.

Disappointing Outlook Weighs on Shares

The company guided Q2 revenue between $10.20 billion and $11.00 billion. The Street wanted $11.02 billion.

Earnings per share guidance of $2.45 to $2.65 missed the $2.66 consensus. Investors reacted swiftly to the conservative forecast.

Shares closed at $148.89. Trading volume reached 18.75 million, nearly double the 9.83 million average.

The stock has dropped 12.87% over three months. Over the past year, shares are down 15.34%.

The 52-week range spans from $120.80 to $205.95. The 50-day moving average sits at $168.65.

Financial Position and Dividend

Qualcomm declared a $0.89 quarterly dividend. That translates to a 2.4% annual yield based on current prices.

Shareholders of record as of March 5th will receive payment on March 26th. The company’s dividend payout ratio stands at 72.80%.

The balance sheet shows a debt-to-equity ratio of 0.70. Quick ratio is 2.10 and current ratio reaches 2.82.

Return on equity came in at 43.22%. Net margin hit 12.51%.

Market capitalization stands at $159.02 billion. The price-to-earnings ratio is 30.45.

Analysts expect full-year earnings of $9.39 per share. The stock received 18 positive EPS revisions over 90 days versus just 3 negative revisions.

Wall Street coverage remains mixed. Eleven analysts rate it buy, seven say hold, and two recommend sell.

The average price target is $188.50. That implies 26% upside from current levels.

Cantor Fitzgerald lowered its target to $160. The firm cited conservative guidance and market share risks.

Mizuho cut its price target from $175 to $160. UBS Group kept a neutral stance.

Sanford C. Bernstein maintained an outperform rating at $200. The firm sees long-term value despite near-term headwinds.

Institutional ownership stands at 74.35%. Amundi increased its position by 9.9% in Q3 to hold 12.67 million shares worth $2.14 billion.

Rafferty Asset Management grew its stake 59.1% to 4.42 million shares. Viking Global Investors jumped 120.1% to 3.15 million shares.

Recent insider activity shows EVP Akash J. Palkhiwala sold 10,000 shares at $175.12 in December. Insider Heather S. Ace sold 1,600 shares at $172.87 in November.

Total insider sales reached 44,820 shares worth $7.88 million over 90 days. Insiders own just 0.05% of the company.

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