📊 QCOM Key Takeaways
Is Qualcomm Inc./de (QCOM) a Good Investment?
QUALCOMM demonstrates solid fundamental strength with 13.7% revenue growth, healthy 24.8% operating margins, and exceptional free cash flow generation of $6.3B. However, a sharp 45.4% YoY net income decline despite revenue growth signals profitability quality concerns, likely driven by non-operating items or prior-year one-time charges that require clarification.
QUALCOMM shows strong underlying fundamentals with double-digit revenue growth, high operating profitability, and excellent free cash flow generation. The balance sheet remains healthy, with solid liquidity, manageable leverage, and strong interest coverage. The main caution is the sharp decline in net income and EPS despite higher revenue, which suggests earnings quality and below-operating-line pressures need close monitoring.
Why Buy Qualcomm Inc./de Stock? QCOM Key Strengths
- Strong revenue growth of 13.7% YoY with stable 24.8% operating margin demonstrating operational efficiency
- Exceptional cash generation: $6.3B free cash flow with 27.7% FCF margin provides capital flexibility
- Fortress balance sheet with 2.37x current ratio, 0.54x debt-to-equity, and 16.6x interest coverage indicating minimal financial stress
- Superior returns on capital: 38% ROE and 18.2% ROA reflect efficient asset deployment
- Solid liquidity position with $5.4B cash reserves
- High profitability with 27.5% operating margin and 24.5% net margin
- Strong cash generation with $4.42B in free cash flow and 36.0% FCF margin
- Healthy financial position supported by 2.51x current ratio, 0.64x debt-to-equity, and 19.9x interest coverage
QCOM Stock Risks: Qualcomm Inc./de Investment Risks
- Net income declined 45.4% YoY despite 13.7% revenue growth indicating significant profitability deterioration or one-time item cycling
- 45.4% net margin appears artificially inflated; gap between $5.7B operating income and $10.4B net income suggests reliance on non-operating gains or favorable tax items
- Earnings volatility and quality concerns reduce confidence in reported profitability metrics and forward guidance visibility
- Net income fell 45.4% YoY and diluted EPS fell 44.1% YoY despite revenue growth
- ROA of 5.7% and ROE of 13.0% are solid but not exceptional relative to the profit profile
- Missing gross margin data limits visibility into core cost structure and product-level profitability trends
Key Metrics to Watch
- Net income trend and composition of below-operating-line items in next quarters
- Organic revenue growth sustainability and operating margin consistency
- Free cash flow conversion rate and capital allocation decisions relative to debt reduction
- Net income and diluted EPS trend versus revenue growth
- Operating margin and free cash flow consistency
Qualcomm Inc./de (QCOM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 27.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.37x current ratio provides a solid financial cushion.
QCOM Profit Margin, ROE & Profitability Analysis
QCOM vs Telecom Sector: How Qualcomm Inc./de Compares
How Qualcomm Inc./de compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Qualcomm Inc./de Stock Overvalued? QCOM Valuation Analysis 2026
Based on fundamental analysis, Qualcomm Inc./de appears fundamentally strong relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Qualcomm Inc./de Balance Sheet: QCOM Debt, Cash & Liquidity
QCOM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Qualcomm Inc./de's revenue has grown significantly by 32% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.42 reflects profitable operations.
QCOM Revenue Growth, EPS Growth & YoY Performance
QCOM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $10.6B | $2.8B | $2.52 |
| Q1 2026 | $11.7B | $3.0B | $2.78 |
| Q3 2025 | $9.4B | $2.1B | $1.88 |
| Q2 2025 | $9.4B | $2.3B | $2.06 |
| Q1 2025 | $9.9B | $2.8B | $2.46 |
| Q3 2024 | $8.5B | $1.8B | $1.60 |
| Q2 2024 | $9.3B | $1.7B | $1.52 |
| Q1 2024 | $9.5B | $2.2B | $1.98 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Qualcomm Inc./de Dividends, Buybacks & Capital Allocation
QCOM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Qualcomm Inc./de (CIK: 0000804328)
📋 Recent SEC Filings
❓ Frequently Asked Questions about QCOM
What is the AI rating for QCOM?
Qualcomm Inc./de (QCOM) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are QCOM's key strengths?
Claude: Strong revenue growth of 13.7% YoY with stable 24.8% operating margin demonstrating operational efficiency. Exceptional cash generation: $6.3B free cash flow with 27.7% FCF margin provides capital flexibility. ChatGPT: High profitability with 27.5% operating margin and 24.5% net margin. Strong cash generation with $4.42B in free cash flow and 36.0% FCF margin.
What are the risks of investing in QCOM?
Claude: Net income declined 45.4% YoY despite 13.7% revenue growth indicating significant profitability deterioration or one-time item cycling. 45.4% net margin appears artificially inflated; gap between $5.7B operating income and $10.4B net income suggests reliance on non-operating gains or favorable tax items. ChatGPT: Net income fell 45.4% YoY and diluted EPS fell 44.1% YoY despite revenue growth. ROA of 5.7% and ROE of 13.0% are solid but not exceptional relative to the profit profile.
What is QCOM's revenue and growth?
Qualcomm Inc./de reported revenue of $22.9B.
Does QCOM pay dividends?
Qualcomm Inc./de pays dividends, with $590.0M distributed to shareholders in the trailing twelve months.
Where can I find QCOM SEC filings?
Official SEC filings for Qualcomm Inc./de (CIK: 0000804328) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is QCOM's EPS?
Qualcomm Inc./de has a diluted EPS of $9.65.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is QCOM a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Qualcomm Inc./de has a BUY rating with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is QCOM stock overvalued or undervalued?
Valuation metrics for QCOM: ROE of 38.0% (sector avg: 15%), net margin of 45.4% (sector avg: 14%). Higher ROE suggests strong returns relative to peers.
Should I buy QCOM stock in 2026?
Our dual AI analysis gives Qualcomm Inc./de a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is QCOM's free cash flow?
Qualcomm Inc./de's operating cash flow is $7.4B, with capital expenditures of $1.1B. FCF margin is 27.7%.
How does QCOM compare to other Telecom stocks?
Vs Telecom sector averages: Net margin 45.4% (avg: 14%), ROE 38.0% (avg: 15%), current ratio 2.37 (avg: 1).
Why is QCOM's return on equity (ROE) so high?
Qualcomm Inc./de has a return on equity of 38.0%, significantly above the Telecom sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 45.4% net margin.