TLDR
- Qualcomm delivered Q1 fiscal 2026 EPS of $3.50, surpassing the $3.40 analyst forecast
- First quarter revenue of $12.25 billion exceeded the $12.11 billion consensus estimate
- Q2 revenue outlook of $10.20B-$11.00B missed Wall Street’s $11.02B expectation
- Shares fell to $148.89 as trading volume surged to 18.75 million from 9.83 million average
- Quarterly dividend of $0.89 declared with analysts setting average price target at $188.50
Qualcomm topped earnings expectations for its first quarter of fiscal 2026. The wireless technology company reported $3.50 per share on February 4th.
Wall Street had anticipated $3.40 per share. The chipmaker also exceeded revenue projections with $12.25 billion versus the $12.11 billion estimate.
Despite beating on both metrics, shares declined. The culprit was underwhelming forward guidance.
Weak Guidance Drives Investor Concern
Management projected Q2 revenue between $10.20 billion and $11.00 billion. Analysts expected $11.02 billion at the midpoint.
The earnings forecast of $2.45 to $2.65 per share also trailed the $2.66 consensus. This cautious stance triggered selling pressure.
The stock finished at $148.89. Volume jumped to 18.75 million shares, almost double the typical 9.83 million daily average.
This marked a three-month decline of 12.87%. Year-over-year, shares have fallen 15.34%.
The 52-week low stands at $120.80. The high reached $205.95 during the period.
Moving averages paint a bearish picture. The 50-day average is $168.65 while the 200-day sits at $165.38.
Dividend and Valuation Metrics
The company announced a $0.89 per share quarterly dividend. This represents an annualized payout of $3.56 and yields 2.4%.
Payment goes out March 26th to shareholders on record by March 5th. The payout ratio currently measures 72.80%.
Financial health appears solid. Debt-to-equity ratio is 0.70 with a quick ratio of 2.10.
Current ratio reaches 2.82. Return on equity registered 43.22% while net margin hit 12.51%.
Market cap totals $159.02 billion. The stock trades at a price-to-earnings ratio of 30.45.
Full-year earnings estimates stand at $9.39 per share. Recent revisions skew positive with 18 upward moves against 3 downgrades over 90 days.
Analyst sentiment remains divided. Eleven rate it buy, seven assign hold ratings, and two issue sell recommendations.
Average price target sits at $188.50. That suggests 26% potential upside from current prices.
Cantor Fitzgerald trimmed its target to $160, pointing to conservative guidance and competitive pressures. Mizuho also cut its forecast from $175 to $160 with a neutral rating.
Sanford C. Bernstein holds an outperform rating with a $200 target. The firm believes long-term growth prospects justify the valuation.
Institutional investors control 74.35% of shares. Amundi boosted its stake 9.9% in Q3 to own 12.67 million shares valued at $2.14 billion.
Rafferty Asset Management increased holdings 59.1% to 4.42 million shares worth $703.7 million. Viking Global Investors expanded its position 120.1% to 3.15 million shares.
Insider activity has leaned toward selling. EVP Akash J. Palkhiwala offloaded 10,000 shares at $175.12 in December.
Heather S. Ace sold 1,600 shares at $172.87 in November. Total insider sales reached 44,820 shares worth $7.88 million over the past three months.
Company insiders own just 0.05% of outstanding stock.
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