QUALCOMM Incorporated (QCOM) AI Stock Analysis

QUALCOMM Incorporated develops foundational technologies essential to mobile communications and the wireless industry. The company operates through three segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). QCT develops integrated circuits and system software for voice, data communications, networking, multimedia, and GPS applications across 3G, 4G, and 5G standards. QTL licenses Qualcomm's patented intellectual property portfolio to manufacturers for standards including CDMA2000, WCDMA, LTE, and 5G. QSI invests in emerging technologies and early-stage companies across automotive, 5G, artificial intelligence, cloud computing, IoT, and extended reality.

Qualcomm grew annual revenue from $33.57B in FY2021 to $44.28B in FY2025, reflecting a 5-year revenue CAGR of 13.5%. After dropping 19.0% in FY2023, revenue rebounded 8.8% in FY2024 and 13.7% in FY2025. Gross margin stood at 55.4% in FY2025, down from 57.5% in FY2021, while operating margin was 27.9%. Net income was $5.54B in FY2025, compared to $10.14B in FY2024 and $12.94B in FY2022. For the latest quarter ended June 30, 2026, quarterly revenue fell 4.0% year-over-year, and quarterly earnings declined 23.0% year-over-year. TTM revenue reached $44.07B with a profit margin of 21.0% and EPS of $8.64.

As of June 30, 2026, Qualcomm held $8.30B in cash and short-term investments against total debt of $15.27B, resulting in net debt of $6.97B. Shareholders' equity was $27.66B, total assets were $57.37B, and the current ratio was 2.02 with a debt-to-equity ratio of 0.55. In FY2025, the company generated $14.01B in operating cash flow and invested $1.19B in capital expenditures, delivering $12.82B in free cash flow. Cash deployment in FY2025 included $8.79B in share buybacks and $3.81B in dividends paid, contributing to a 5-year share count change of -6.4%.

Qualcomm trades at a trailing P/E of 19.9x and a forward P/E of 19.6x, compared to the median of its Nasdaq-100 Technology peers of 43.3x and 25.7x, respectively. Its enterprise value of $217.63B reflects an EV/EBITDA of 16.2x, below the peer median of 32.8x, and a price-to-sales of 4.2x versus the peer median of 12.4x. Over the past year, Qualcomm's stock returned 7.1%, trailing the S&P 500 (SPY) return of 16.8%. Over a 5-year period, the stock returned 47.4% compared to 83.0% for the S&P 500.

Qualcomm pays a forward annual dividend of $3.68 per share, representing a dividend yield of 2.14% and a payout ratio of 35.4%. Dividends are distributed quarterly and have been paid for 24 consecutive years. The dividend has achieved a 5-year annualized growth rate of 6.5%, with the last ex-dividend date occurring on September 3, 2026.

Wall Street coverage includes 9 Strong Buy, 2 Buy, 23 Hold, 2 Sell, and 1 Strong Sell ratings. The mean price target is $194.13, which is 12.8% above the last close of $172.11. For the fiscal year ending September 30, 2026, analysts estimate revenue of $42.87B and EPS of $10.48, representing a 12.9% EPS decline. For the next fiscal year, 34 analysts project revenue of $44.87B and EPS of $10.19. Qualcomm beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 4, 2026.

This page is an AI-written research summary of QUALCOMM Incorporated (QCOM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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