Qualcomm (NASDAQ:QCOM) Trading Down 4.4% on Disappointing Earnings

Qualcomm Incorporated (NASDAQ:QCOM)’s share price fell 4.4% on Wednesday following a dissappointing earnings announcement. The stock traded as low as $155.00 and last traded at $155.68. 18,350,140 shares traded hands during mid-day trading, an increase of 11% from the average session volume of 16,545,064 shares. The stock had previously closed at $162.88.

The wireless technology company reported $2.21 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.22 by ($0.01). Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The firm had revenue of $9.95 billion for the quarter, compared to analyst estimates of $9.69 billion. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS.

Qualcomm Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be issued a dividend of $0.92 per share. This represents a $3.68 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Thursday, September 3rd. Qualcomm’s payout ratio is currently 40.00%.

Qualcomm News Roundup

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm was named BMW Group’s lead compute-silicon provider for digital cockpits and advanced driver-assistance and automated-driving systems through the next decade. The agreement expands the potential for recurring automotive revenue through Qualcomm’s Snapdragon Digital Chassis portfolio. Qualcomm wins BMW chip supply deal
• Positive Sentiment: Qualcomm completed its all-stock acquisition of Modular, an AI-software company. Modular’s platform is intended to help developers deploy generative and agentic AI across different computing systems, strengthening Qualcomm’s push from edge devices into data-center and broader AI infrastructure markets. Qualcomm completes Modular acquisition
• Positive Sentiment: Recent coverage highlights expanded Samsung cooperation, AI initiatives and continued automotive growth as potential catalysts that could reduce Qualcomm’s reliance on smartphones. The company also recently declared a quarterly dividend of $0.92 per share. Qualcomm Samsung expansion and AI deals
• Neutral Sentiment: Qualcomm is scheduled to report fiscal third-quarter results after the market close. Options markets imply an unusually large post-earnings move of roughly 9%, reflecting significant uncertainty around guidance, smartphone demand and the pace of AI-related growth. Qualcomm stock could swing 9 percent
• Negative Sentiment: The stock has fallen sharply from its yearly high and is testing technical support ahead of earnings. Investors remain concerned that handset revenue declined 13% in the prior quarter, while the company’s AI and data-center expansion has yet to fully offset smartphone-related weakness. Qualcomm is down from its high
• Negative Sentiment: Broader market caution is adding pressure, with investors awaiting a Federal Reserve decision and monitoring turbulence in the memory-chip market. These macro concerns may make investors less willing to bid up semiconductor shares before Qualcomm provides its outlook.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on QCOM shares. Craig Hallum downgraded Qualcomm from a “buy” rating to a “hold” rating in a report on Thursday, June 25th. Benchmark reaffirmed a “buy” rating on shares of Qualcomm in a research report on Monday. Raymond James Financial initiated coverage on shares of Qualcomm in a research note on Thursday, June 25th. They issued a “strong-buy” rating for the company. UBS Group set a $300.00 target price on shares of Qualcomm in a research report on Monday. Finally, Evercore set a $179.00 price target on shares of Qualcomm in a research note on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, twenty-one have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $222.77.

Insider Buying and Selling

In related news, EVP Heather S. Ace sold 3,200 shares of the business’s stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $177.82, for a total value of $569,024.00. Following the completion of the sale, the executive vice president directly owned 39,735 shares in the company, valued at approximately $7,065,677.70. The trade was a 7.45% 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, CEO Cristiano R. Amon sold 10,000 shares of the business’s stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $180.00, for a total value of $1,800,000.00. Following the completion of the sale, the chief executive officer owned 197,568 shares of the company’s stock, valued at approximately $35,562,240. This trade represents a 4.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 21,721 shares of company stock worth $4,044,465. Insiders own 0.05% of the company’s stock.

Institutional Trading of Qualcomm

Institutional investors and hedge funds have recently modified their holdings of the company. JFS Wealth Advisors LLC grew its stake in Qualcomm by 3.4% in the 2nd quarter. JFS Wealth Advisors LLC now owns 1,595 shares of the wireless technology company’s stock valued at $295,000 after buying an additional 53 shares during the last quarter. Wall Street Financial Group Inc. raised its holdings in Qualcomm by 1.9% in the 2nd quarter. Wall Street Financial Group Inc. now owns 3,050 shares of the wireless technology company’s stock worth $564,000 after acquiring an additional 57 shares during the period. Sunbeam Capital Management LLC lifted its position in Qualcomm by 3.7% during the 2nd quarter. Sunbeam Capital Management LLC now owns 1,637 shares of the wireless technology company’s stock worth $303,000 after acquiring an additional 58 shares during the last quarter. Basepoint Wealth LLC lifted its position in Qualcomm by 1.8% during the 1st quarter. Basepoint Wealth LLC now owns 3,333 shares of the wireless technology company’s stock worth $429,000 after acquiring an additional 59 shares during the last quarter. Finally, Five Oceans Advisors boosted its holdings in Qualcomm by 3.3% during the second quarter. Five Oceans Advisors now owns 1,827 shares of the wireless technology company’s stock valued at $338,000 after acquiring an additional 59 shares during the period. 74.35% of the stock is currently owned by institutional investors and hedge funds.

Qualcomm Price Performance

The company has a market capitalization of $164.09 billion, a P/E ratio of 16.92, a PEG ratio of 5.05 and a beta of 1.63. The stock’s fifty day simple moving average is $202.20 and its 200-day simple moving average is $168.13. The company has a debt-to-equity ratio of 0.54, a current ratio of 2.37 and a quick ratio of 1.61.

Qualcomm Company Profile

Qualcomm Incorporated is a global semiconductor and telecommunications equipment company headquartered in San Diego, California. Founded in 1985, the company is known for its development of wireless technologies and for playing a central role in the evolution of digital cellular standards, including CDMA and subsequent generations of mobile standards. Qualcomm’s business combines the design and sale of semiconductor products with a patent licensing program for wireless technologies and related intellectual property.

The company’s product portfolio includes system-on-chip (SoC) platforms marketed under the Snapdragon brand, cellular modem and RF front-end components, connectivity solutions for Wi‑Fi and Bluetooth, and processors and platforms aimed at automotive, IoT, networking and edge-computing applications.