Qualcomm's Outlook Boosted by Apple's Strength Amid Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14h ago
0mins
Should l Buy QCOM?
Source: Benzinga
- Earnings Outlook Upgraded: Qualcomm anticipates a revenue of $12.6 billion for Q1 FY2026, exceeding the consensus of $12.2 billion, indicating resilience in the smartphone market bolstered by Apple's strength.
- Earnings Estimates Lowered: JPMorgan has reduced its FY2026 EPS estimate from $11.80 to $11.50, and the FY2027 forecast from $12.80 to $12.15, reflecting concerns over a soft smartphone market impacting licensing revenues.
- Acquisition Cost Pressure: Due to increased expenses from recent acquisitions of Alphawave, Ventana, and Augentix, along with rising R&D spending in the datacenter sector, JPMorgan forecasts Q2 FY2026 EPS at $2.66, below the consensus of $2.90.
- Valuation Remains Attractive: Despite the price forecast cut to $195, this still implies a 29% upside from current levels, supported by an “inexpensive” valuation multiple of 13 times next twelve months earnings and growth opportunities in AI inferencing for datacenters.
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Analyst Views on QCOM
Wall Street analysts forecast QCOM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for QCOM is 197.14 USD with a low forecast of 165.00 USD and a high forecast of 225.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
10 Buy
5 Hold
1 Sell
Moderate Buy
Current: 151.590
Low
165.00
Averages
197.14
High
225.00
Current: 151.590
Low
165.00
Averages
197.14
High
225.00
About QCOM
Qualcomm Incorporated is engaged in the development and commercialization of foundational technologies for the wireless industry, including third generation (3G), fourth generation (4G) and fifth generation (5G) wireless connectivity, and high-performance and low-power computing, including on-device artificial intelligence. Its segments include Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives. QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including radio frequency front-end, digital cockpit and advanced driver assistance and automated driving, Internet of things including consumer electronic devices, industrial devices and edge networking products. QTL grants licenses or otherwise provides rights to use portions of its intellectual property portfolio that includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Access to Technology Platforms: Participating startups will gain access to Qualcomm's Dragonwing™ and Snapdragon® platforms, along with the Arduino® UNO Q development board, enabling them to build scalable AI applications across various sectors including consumer devices, healthcare, and smart cities.
- Global Ecosystem Connectivity: The QAIPI program offers not only technical guidance and one-on-one training but also helps startups engage with global markets; in 2025, it supported their participation in major industry events like the Singapore Week of Innovation and Technology, further promoting global commercialization.
- Future Outlook: Qualcomm aims to drive rapid advancements in edge AI through the QAIPI program, empowering startups to transform ideas into deployable solutions, thereby fostering greater economic growth and societal impact across the Asia-Pacific region.
See More
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- Innovative Technology Application: The mMIMO radio units from 1Finity utilize advanced beamforming techniques and spatial multiplexing, which can significantly increase network capacity compared to traditional 4T4R solutions, meeting the growing user demand while reducing energy consumption per bit, thus promoting sustainability.
- Commercial Deployment: The deployment of the 32A37 mMIMO O-RU operating at 3.7 GHz will interoperate with Rakuten Symphony's centralized and distributed units via the O-RAN open fronthaul interface, marking the first large-scale commercial application of this technology in the industry, enhancing Rakuten Mobile's competitive edge.
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- Financial Performance: TG Therapeutics reported preliminary fourth-quarter revenue of $182 million for its main product as of January 30, and despite a significant 92.8% year-over-year growth to $161.7 million in the third quarter, the overall performance could not offset the 11.8% decline in its stock over the past year.
- Market Comparison: The underperformance of TG Therapeutics' stock, losing 11.8%, contrasts sharply with the Nasdaq Composite and S&P 500's gains of 20% and 15.8%, respectively, highlighting a lack of competitive edge in the biotechnology sector that may pose higher risks for investors.
- Investor Implications: The complete exit by Hussman suggests a diminishing confidence in TG Therapeutics, prompting investors to closely monitor the company's future strategic partnerships and clinical program developments to assess potential growth opportunities in oncology and immunology markets.
See More
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- Earnings Outlook Upgraded: Qualcomm anticipates a revenue of $12.6 billion for Q1 FY2026, exceeding the consensus of $12.2 billion, indicating resilience in the smartphone market bolstered by Apple's strength.
- Earnings Estimates Lowered: JPMorgan has reduced its FY2026 EPS estimate from $11.80 to $11.50, and the FY2027 forecast from $12.80 to $12.15, reflecting concerns over a soft smartphone market impacting licensing revenues.
- Acquisition Cost Pressure: Due to increased expenses from recent acquisitions of Alphawave, Ventana, and Augentix, along with rising R&D spending in the datacenter sector, JPMorgan forecasts Q2 FY2026 EPS at $2.66, below the consensus of $2.90.
- Valuation Remains Attractive: Despite the price forecast cut to $195, this still implies a 29% upside from current levels, supported by an “inexpensive” valuation multiple of 13 times next twelve months earnings and growth opportunities in AI inferencing for datacenters.
See More
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- Experience Economy Growth: The company's experiences division, which includes theme parks, resorts, and cruises, achieved quarterly revenue of $10 billion for the first time, indicating strong consumer demand for entertainment experiences that drive overall performance.
- CEO Succession Uncertainty: With the announcement of CEO Bob Iger's successor imminent, Disney's board is set to meet this week to vote on the new leader, a decision that could significantly impact the company's future strategic direction.
- Industry Dynamics: Disney's earnings report kicks off a busy week for earnings, with upcoming reports from PepsiCo, Chipotle, Alphabet, and Amazon, making it crucial for investors to monitor these companies' performance.
See More
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See More
