Start here if you're new
what it is
Qualcomm sells the chips and patents that make phones, cars, and connected devices talk to networks.
how it gets paid
Last year Qualcomm made $44.3B in revenue.
why it's growing
Revenue grew 13.7% last year. The number that mattered was $3.50 EPS, because Qualcomm beat the $3.40 estimate while still investing in new markets like AI data center chips.
what just happened
Qualcomm's last reported quarter delivered $3.50 EPS versus a $3.40 estimate, while revenue reached $12.3 billion.
At a glance
A balance sheet — strong enough to weather a downturn
65/100 earnings predictability — reasonably predictable
14.6x trailing p/e — the market's not buying it — or you found a deal
2.1% dividend yield — cash in your pocket every quarter
32.5% return on capital — every dollar works hard here
xvary composite: 67/100 — average
What they do
Qualcomm sells the chips and patents that make phones, cars, and connected devices talk to networks.
Qualcomm gets paid two ways. It sells chips through QCT, then collects licensing fees through QTL, which produced 74% of 2025 pre-tax earnings while QCT produced 26%. Licensing → patent toll booth → so what: even if your next phone brand changes, Qualcomm can still get paid.
How they make money
$44.3B
annual revenue · their business grew +13.7% last year
total revenue
$44.3B
+13.7%
The products that matter
sells chips and modems
QCT
$33.2B · 78% of revenue
it is the core engine today: $33.2B of revenue, or 78% of the business, which is why handset and device demand still set the tone for your quarter.
core engine
collects wireless royalties
QTL
$6.2B · 15% of revenue
this $6.2B segment is only 15% of revenue, but it is the part of Qualcomm competitors cannot simply underprice away. That is why the patent portfolio matters so much.
royalty moat
smaller bets beyond phones
QSI & other
$3.1B · 7% of revenue
this bucket is just $3.1B, or 7% of sales. If Qualcomm wants a cleaner "not just smartphones" narrative, this number needs to keep getting bigger.
diversification
Key numbers
74%
licensing profit share
Most of Qualcomm's profit comes from patents, not chips. That means the royalty model matters more than unit headlines.
14.6x
trailing p/e
You are paying a market-multiple price for a business with a 30.9% net margin and 32.5% return on capital.
32.5%
return on capital
Return on capital → profit earned on each dollar invested → so what: Qualcomm turns investment into cash better than most large chip companies.
$210
18-month target
That target is about 20% above $175.31, while the low-end range is $134. The setup is upside, but not without teeth.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 50 / 100
- long-term debt $14.8B (7% of capital)
- net profit margin 30.9% — keeps 31 cents of every dollar in revenue
- return on equity 46% — $0.46 profit for every $1 investors have put in
A with balance sheet grade and net profit margin standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in QCOM 3 years ago → it's now worth $15,410.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Qualcomm's last reported quarter delivered $3.50 EPS versus a $3.40 estimate, while revenue reached $12.3 billion.
Revenue rose 5% vs. prior year to $12.3 billion, according to the latest quarterly figure. Consensus data shows a 2.94% EPS beat, even as quarterly EPS comparisons remain messy across sources.
$12.3B
revenue
$3.50
eps
27.9%
operating margin
the number that mattered
The number that mattered was $3.50 EPS, because Qualcomm beat the $3.40 estimate while still investing in new markets like AI data center chips.
-
qualcomm reported that the company is effectively diversifying, citing record revenues in non-handset businesses.
-
the stock surged 11% in late october after the company announced its entry into the ai data center market.the unveiling of the ai200 and ai250 chips represented a strategic shift for the company, which has traditionally focused on mobile semiconductors. this move positioned it to compete directly with nvidia and amd for a share of the data center market, with nearly $6.7 trillion in capital expenditures expected through 2030.
-
the rally was also supported by qualcomm’s legal victory over arm regarding licensing agreements.
-
the company delivered strong fourth-quarter fiscal 2025 results.
-
revenue hit $11.3 billion, with non-gaap earnings per share of $3.00, both exceeding expectations.
source: company earnings report, 2026
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What could go wrong
the #1 risk is premium handset demand staying too important to the story.
med
handset concentration
QCT generated $33.2B last year, or 78% of revenue. That means Qualcomm still lives with phone upgrade cycles, even if the company wants the market to focus elsewhere.
Impact: most of the $44.3B revenue base still depends on device demand holding up.
med
licensing pressure
QTL brought in $6.2B, about 15% of revenue, and the business sits under recurring legal and regulatory scrutiny because royalty models always attract that attention.
Impact: pressure on the licensing framework would hit the most defensible part of the story, not just a side segment.
med
diversification arriving slower than advertised
QSI & other is only $3.1B, or 7% of sales. The AI data center move is interesting, but interesting is not the same as material.
Impact: if newer markets stay small, the stock keeps trading like a handset supplier with a patent side hustle.
78% of revenue still comes from chips, while another $6.2B depends on licensing durability. If either handset demand or the royalty model weakens, the low multiple will stop looking like a bargain and start looking deserved.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
qct share of revenue
QCT is 78% of revenue today. If that share stays this high, the market will keep valuing Qualcomm like a cyclical chip stock first.
risk
licensing headlines
QTL produced $6.2B last year. Any regulatory or legal pressure here matters more than the headline count suggests.
calendar
next proof point on diversification
Management says non-handset businesses are growing. The next report needs to show that in segment mix, not just in adjectives.
trend
institutional selling streak
There were 1,208 buyers versus 1,235 sellers in 3q2025. If that balance flips, sentiment may be turning before the narrative does.
Analyst rankings
short-term outlook
average
momentum score 3 means the stock is behaving like the broader market. In human-speak, analysts do not see a strong near-term edge yet.
risk profile
average
stability score 3 means typical stock risk. You are not buying a defensive utility here.
chart momentum
top 20%
technical score 2 signals above-average price performance potential in the year ahead. The chart looks better than the narrative.
earnings predictability
65 / 100
65 out of 100 means earnings are decent, not automatic. Expect cleaner numbers than a turnaround story, but less smoothness than a software annuity.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 1,208 buyers vs. 1,235 sellers in 3q2025. total institutional holdings: 0.8B shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$134
$286
$175
current price
$210
target midpoint · +20% from current · 3-5yr high: $270 (+55% · 13% ann'l return)
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