Core Viewpoint - QUALCOMM has seen mixed analyst ratings and institutional investor activity, with recent earnings exceeding expectations but facing challenges due to memory shortages impacting future guidance. Group 1: Institutional Investor Activity - Waypoint Wealth Counsel increased its holdings in QUALCOMM by 2.2%, owning 2,863 shares valued at $476,000 after acquiring 61 additional shares [1] - Greykasell Wealth Strategies Inc. boosted its holdings by 1.5%, now owning 4,126 shares worth $686,000 after acquiring 61 shares [1] - Baron Wealth Management LLC grew its position by 4.5%, owning 1,431 shares valued at $238,000 after acquiring 62 shares [1] - Avion Wealth increased its position by 16.7%, now owning 441 shares valued at $70,000 after acquiring 63 shares [1] - Insight Advisors LLC PA raised its stake by 1.8%, owning 3,488 shares valued at $556,000 after purchasing 63 shares [1] - Institutional investors and hedge funds collectively own 74.35% of QUALCOMM's stock [1] Group 2: Analyst Ratings and Price Targets - Wall Street Zen downgraded QUALCOMM from "buy" to "hold" [2] - Bank of America also downgraded QUALCOMM from "buy" to "neutral," setting a price target of $155.00 [2] - Susquehanna downgraded QUALCOMM from "positive" to "neutral," with a price objective of $140.00 [2] - The consensus rating for QUALCOMM is "Hold" with an average price target of $167.68 [2] Group 3: Stock Performance and Financial Metrics - QUALCOMM stock opened at $137.34, with a market cap of $146.54 billion and a PE ratio of 28.38 [3] - The stock has a 52-week low of $120.80 and a high of $205.95 [3] - The company reported a net margin of 11.96% and a return on equity of 44.09% [4] - Revenue for the quarter was $12.25 billion, exceeding expectations of $12.16 billion, with a year-over-year increase of 4.7% [4] Group 4: Dividend Information - QUALCOMM announced a quarterly dividend of $0.89, with an annualized yield of 2.6% [5] - The dividend payout ratio is currently 72.80% [5] Group 5: Insider Activity - CAO Patricia Y. Grech sold 513 shares at an average price of $160.95, reducing her position by 71.65% [8] - EVP Alexander H. Rogers sold 15,917 shares at an average price of $178.01, representing a 37.91% decrease in ownership [8] - In the last quarter, insiders sold 43,017 shares valued at $7,462,875, with 0.05% of the stock owned by insiders [8] Group 6: Company Overview - QUALCOMM is a global semiconductor and telecommunications equipment company, known for its development of wireless technologies and semiconductor products [9][10]

State of Michigan Retirement System decreased its position in shares of QUALCOMM Incorporated (NASDAQ:QCOM – Free Report) by 2.0% during the 3rd quarter, according to its most recent disclosure with the SEC. The firm owned 333,466 shares of the wireless technology company’s stock after selling 6,700 shares during the period. State of Michigan Retirement System’s holdings in QUALCOMM were worth $55,475,000 as of its most recent SEC filing. Get QUALCOMM alerts: Several other hedge funds and other institution ...

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Chief Financial Officer Akash Palkhiwala added that QTL licensing revenue was $1.6 billion with earnings before taxes (EBT) margin of 77%, coming in at the high end of guidance due to higher units and favorable mix. On the chip side, QCT handset revenue was a record $7.8 billion, which he attributed to recently launched flagship smartphones.CEO Cristiano Amon said fiscal Q1 delivered record total revenue of $12.3 billion. Within Qualcomm CDMA Technologies (QCT), the company posted record revenue of $10.6 bi ...

Financial Data and Key Metrics Changes - The company reported record revenues of $12.3 billion and non-GAAP earnings per share (EPS) of $3.50 for fiscal Q1 2026, with non-GAAP EPS at the high end of guidance [6][16] - QCT revenues reached a record $10.6 billion, driven by strong performance in automotive and IoT segments [6][16] - Licensing business revenues were $1.6 billion, with an EBT margin of 77%, reflecting higher units and favorable mix [16] Business Line Data and Key Metrics Changes - QCT handset revenues reached a record $7.8 billion, benefiting from recently launched flagship smartphones [16] - QCT IoT revenues grew 9% year-over-year to $1.7 billion, driven by demand across consumer and networking products [16] - QCT Automotive revenues grew to $1.1 billion, up 15% year-over-year, driven by increased demand for Snapdragon Digital Chassis platforms [17] Market Data and Key Metrics Changes - Global consumer demand for handsets, particularly in the premium and high-tier segments, exceeded expectations, with healthy sell-through observed [6][7] - The handset industry is expected to face constraints due to memory availability and pricing, particularly DRAM, as suppliers redirect capacity to meet AI data center demand [7][18] - The company anticipates that the overall size of the handset market will be defined by memory availability throughout the fiscal year [39][69] Company Strategy and Development Direction - The company is focused on expanding its presence in the premium and high-tier smartphone segments, with a dual flagship product strategy that has been well received [8][42] - The company is investing in AI-native smartphones and intelligent wearables, positioning Snapdragon platforms as the choice for the industry [8][12] - The company aims to strengthen its leadership in automotive and robotics, with multiple design wins and collaborations with major automakers [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the handset business despite near-term challenges related to memory supply [18][39] - The company expects to return to prior growth trajectories for QCT handset revenues once memory supply conditions normalize [18] - Management remains optimistic about the long-term growth potential in automotive and IoT, with combined growth expected to outpace long-term revenue targets [21][22] Other Important Information - The company returned $3.6 billion to stockholders, including $2.6 billion in stock repurchases and $949 million in dividends [17] - The company completed the acquisition of Alphawave Semi, enhancing its data center solutions [14] Q&A Session Summary Question: What factors are driving the weakness in handset outlook beyond memory pricing? - Management indicated that the weakness is entirely related to memory availability, with strong microeconomic indicators and handset demand observed [26][27] Question: Is the automotive revenue growth driven by ADAS wins? - Management confirmed that the automotive pipeline continues to translate into revenue, with new car launches contributing to record revenues [30] Question: How is the company progressing with data center customers? - Management reported positive progress with customers, including shipping to Humane and engagement with major hyperscalers [34] Question: What is the company's strategy regarding memory shortages? - Management clarified that they do not purchase memory directly but work with customers who do, ensuring flexibility in memory sourcing [67][69] Question: How does the company plan to navigate the memory allocation challenges with larger OEMs? - Management acknowledged that larger OEMs may have better access to memory but emphasized that the issue is industry-wide and not limited to specific customers [73]

Qualcomm (NasdaqGS:QCOM) Q1 2026 Earnings call February 04, 2026 04:45 PM ET Company ParticipantsAkash Palkhiwala - CFOAlex Rogers - PresidentBen Reitzes - Managing Director and Head of Technology ResearchC.J. Muse - Senior Managing DirectorCristiano Amon - President and CEOMauricio Lopez-Hodoyan - VP of Investor RelationsRoss Seymore - Managing DirectorTimothy Arcuri - Managing DirectorConference Call ParticipantsJoshua Buchalter - Managing Director - Senior Analyst, Semiconductors Equity ResearchSamik Cha ...

Financial Data and Key Metrics Changes - The company reported record revenues of $12.3 billion and non-GAAP earnings per share (EPS) of $3.50 for fiscal Q1 2026, with non-GAAP EPS at the high end of guidance [5][17] - QCT revenues reached a record $10.6 billion, with strong year-over-year growth across automotive and IoT segments [17] - Licensing business revenues were $1.6 billion, with an EBT margin of 77%, driven by higher units and favorable mix [17] Business Line Data and Key Metrics Changes - QCT handset revenues reached a record $7.8 billion, benefiting from recently launched flagship smartphones [17] - QCT IoT revenues grew 9% year-over-year to $1.7 billion, driven by demand across consumer and networking products [17] - QCT Automotive revenues grew to $1.1 billion, up 15% year-over-year, reflecting increased demand for Snapdragon Digital Chassis platforms [17] Market Data and Key Metrics Changes - Global consumer demand for handsets, particularly in the premium and high-tier segments, exceeded expectations, with healthy sell-through observed [5] - The handset industry is expected to face constraints due to memory availability and pricing, particularly DRAM, as suppliers redirect capacity to meet AI data center demand [5][6] Company Strategy and Development Direction - The company is focused on expanding its presence in the premium and high-tier smartphone segments, with a dual flagship product strategy that has seen broad OEM adoption [6][7] - The company is also investing in AI-native smartphones and intelligent wearables, positioning Snapdragon platforms as the choice for the industry [7][8] - In automotive, the company aims to reinforce its technology leadership with multiple design wins and collaborations with major automakers [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the handset business despite near-term challenges related to memory supply and pricing [19] - The company anticipates returning to prior growth trajectories for QCT handset revenues once memory supply normalizes [19] - Management remains optimistic about the long-term growth potential in automotive and IoT, with expectations for continued revenue acceleration [21] Other Important Information - The company completed the acquisition of Alphawave Semi, enhancing its high-speed wire connectivity technologies [15] - The company is actively engaging with leading hyperscalers and cloud service providers to develop data center solutions [14] Q&A Session Summary Question: What factors are driving the weakness in handset outlook beyond memory pricing? - Management indicated that the weakness is entirely related to memory availability, with strong microeconomic indicators and handset demand observed [26][27] Question: Is the automotive revenue growth driven by ADAS wins? - Management confirmed that the automotive pipeline continues to translate into revenue, with new car launches contributing to record revenues [29][30] Question: How is the company managing the memory supply situation? - Management clarified that they do not purchase memory directly but work closely with customers who do, ensuring flexibility with various memory providers [69][70] Question: What is the outlook for the data center business? - Management stated that progress is on track, with positive feedback from engagements with hyperscalers and cloud service providers [35][36] Question: How does the company view the impact of memory shortages on the overall handset market? - Management emphasized that the size of the handset market will be determined by memory availability, with expectations for premium and high-tier segments to remain resilient [40][76]

First Quarter Fiscal 2026 Earnings February 4, 2026 Snapdragon and Qualcomm branded products are products of Qualcomm Technologies, Inc. and/or its subsidiaries. References in this presentation to "Qualcomm" may mean Qualcomm Incorporated, Qualcomm Technologies, Inc., and/or other subsidiaries or business units within the Qualcomm corporate structure, as applicable. Note Regarding Forward-Looking Statements In addition to historical information, this document and the conference call that it accompanies cont ...

Core Viewpoint - Qualcomm, once a leader in the semiconductor industry, is facing challenges due to a shift in its business model and external market pressures, particularly from rising memory prices impacting demand for its products. Group 1: Historical Context - Qualcomm was a dominant player in the late 1990s, particularly known for its CDMA technology which became essential for 3G networks [1] - The company's stock experienced a remarkable increase of 2619.42% in 1999, although it faced significant declines in the following years during the Internet bust [2] Group 2: Current Business Dynamics - Currently, Qualcomm generates most of its revenue from selling chips and modems for smartphones, but this market has matured, leading to stagnant unit sales and limited revenue growth [3] - There was renewed optimism for Qualcomm due to potential AI-driven upgrades, especially for Apple iPhones, which are a major source of demand [3] Group 3: Market Challenges - A new memory price boom is creating headwinds for Qualcomm, as rising memory costs could dampen demand for PCs, laptops, and smartphones [4][5] - The semiconductor industry is experiencing a memory chip shortage that may persist into 2027, negatively affecting device manufacturers and end users [6] - Surging contract prices for memory are increasing manufacturing costs, which may lead to higher prices for end products, potentially reducing demand for Qualcomm's Snapdragon chips and modems [7]

Core Viewpoint - Qualcomm's stock has underperformed compared to the industry, with an 8.2% increase over the past year against the industry's 35.7% growth, indicating challenges in maintaining competitive performance [2][7]. Group 1: Financial Performance - Qualcomm's margins have been declining due to high operating expenses and R&D costs, leading to a subdued performance [4]. - Earnings estimates for Qualcomm for fiscal 2026 have decreased by 1.4% to $12.15, reflecting bearish investor sentiment regarding growth potential [17]. Group 2: Market Challenges - The company faces significant competitive pressures from rivals like Broadcom and Hewlett Packard, as well as low-cost chip manufacturers, which are expected to negatively impact profits [5][7]. - Qualcomm is experiencing softness in demand from China due to ongoing U.S.-China trade tensions, which complicates its operations and market presence in the region [8][9]. Group 3: Growth Opportunities - Despite short-term challenges, Qualcomm is well-positioned for long-term growth through its investments in 5G technology and a diversified revenue stream, particularly from its Snapdragon portfolio [10]. - The acquisition of U.K.-based Alphawave Semi for approximately $2.4 billion allows Qualcomm to expand into high-growth applications such as data centers and AI [13]. - Qualcomm is also gaining traction in the automotive sector with its V2X communication systems, enhancing its portfolio in connected vehicle technologies [14][16].