TLDR Qualcomm beat Q1 2026 earnings with $3.50 EPS (vs. $3.40 estimate) and $12.25B revenue (vs. $12.11B estimate) Q2 2026 guidance disappointed with expected revenueTLDR Qualcomm beat Q1 2026 earnings with $3.50 EPS (vs. $3.40 estimate) and $12.25B revenue (vs. $12.11B estimate) Q2 2026 guidance disappointed with expected revenue

Qualcomm (QCOM) Stock: Why Investors Sold Despite Earnings Beat

2026/02/05 17:54
4 min read

TLDR

  • Qualcomm beat Q1 2026 earnings with $3.50 EPS (vs. $3.40 estimate) and $12.25B revenue (vs. $12.11B estimate)
  • Q2 2026 guidance disappointed with expected revenue of $10.20B-$11.00B versus analyst consensus of $11.02B
  • Stock dropped to $148.89, down 12.87% over three months and 15.34% over twelve months
  • Company declared quarterly dividend of $0.89 per share, representing 2.4% annual yield
  • Analysts maintain mixed ratings with average price target of $188.50, while stock faces headwinds from handset market concerns

Qualcomm delivered a solid earnings beat for its first quarter of fiscal 2026. The results came in on February 4th with the chipmaker posting earnings per share of $3.50.

That figure topped analyst expectations of $3.40 by $0.10. Revenue for the quarter reached $12.25 billion, beating the consensus estimate of $12.11 billion.


QCOM Stock Card
QUALCOMM Incorporated, QCOM

Despite the beat, investors sent the stock lower. The company’s forward guidance disappointed Wall Street.

Q2 Outlook Falls Short

Qualcomm forecasted Q2 2026 revenue between $10.20 billion and $11.00 billion. Analysts had expected $11.02 billion at the midpoint.

The earnings per share guidance of $2.45 to $2.65 also came in below the consensus estimate of $2.66. This conservative outlook weighed on investor sentiment.

The stock closed at $148.89 on the update. Trading volume hit 18.75 million shares, nearly double the average daily volume of 9.83 million shares.

The sharp uptick in volume reflected active investor reaction to the mixed results. Shares have fallen 12.87% over the past three months.

Over the past year, the stock is down 15.34%. The one-year low stands at $120.80 while the one-year high reached $205.95.

Dividend and Financial Metrics

The company declared a quarterly dividend of $0.89 per share. This represents an annualized dividend of $3.56 and a yield of 2.4%.

The dividend will be paid on March 26th to shareholders of record as of March 5th. The dividend payout ratio currently sits at 72.80%.

Qualcomm maintains a debt-to-equity ratio of 0.70. The company’s quick ratio stands at 2.10 with a current ratio of 2.82.

Return on equity came in at 43.22% while net margin reached 12.51%. The market cap stands at $159.02 billion.

The price-to-earnings ratio is 30.45. The 50-day moving average price sits at $168.65 while the 200-day moving average is $165.38.

Analysts expect Qualcomm to post $9.39 earnings per share for the full current year. The company has seen 18 positive EPS revisions and 3 negative revisions over the past 90 days.

Wall Street remains divided on the stock. Eleven analysts rate it a buy, seven give it a hold rating, and two issue sell ratings.

The average price target across analysts is $188.50. That represents potential upside of about 26% from current levels.

Cantor Fitzgerald recently cut its price target to $160. The firm cited conservative guidance and potential market share shifts.

Mizuho lowered its target from $175 to $160 with a neutral rating. UBS Group maintained a neutral stance in recent coverage.

Sanford C. Bernstein kept an outperform rating with a $200 price target. The firm sees value despite smartphone market concerns.

Institutional investors have been active in the stock. Amundi raised its position by 9.9% in the third quarter to own 12.67 million shares valued at $2.14 billion.

Rafferty Asset Management boosted its holdings by 59.1% to 4.42 million shares worth $703.7 million. Viking Global Investors increased its stake by 120.1% to 3.15 million shares.

About 74.35% of the stock is currently owned by institutional investors and hedge funds. Insider Heather S. Ace sold 1,600 shares in November at $172.87 per share.

EVP Akash J. Palkhiwala sold 10,000 shares in December at $175.12 per share. Company insiders sold 44,820 shares worth $7.88 million over the past ninety days.

The post Qualcomm (QCOM) Stock: Why Investors Sold Despite Earnings Beat appeared first on CoinCentral.

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