QUALCOMM Set to Report Q2 Earnings with Strong Analyst Expectations
San Diego, California-based QUALCOMM Incorporated (QCOM) is recognized as a fabless semiconductor company. With a market cap of $155.4 billion, QUALCOMM is divided into three operational segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI).
The semiconductor leader will release its Q2 earnings after the market closes on Wednesday, April 30. Ahead of this announcement, analysts project that QCOM will report an EPS of $2.27, representing a 17.6% increase compared to the $1.93 reported in the same quarter last year. Notably, QUALCOMM has exceeded the consensus bottom-line expectations in each of the previous four quarters by substantial margins.
For the entire fiscal year 2025, analysts predict QCOM will deliver an EPS of $9.54, reflecting a 12.8% rise from the $8.46 reported in fiscal year 2024. Furthermore, earnings are anticipated to grow by 5.5% year-over-year to reach $10.06 per share in fiscal year 2026.
Despite its strong earnings potential, QCOM stock has declined 10% over the past 52 weeks. This decline notably contrasts with the Technology Select Sector SPDR Fund’s (XLK) 3.7% gain and the S&P 500 Index’s ($SPX) 8.2% increase during the same period.
Following the announcement of its mixed Q1 results on February 5, QCOM stock prices experienced a 3.7% drop in the trading session. During this quarter, the company saw a 17.5% year-over-year revenue increase to $11.7 billion, surpassing analysts’ projections significantly. Additionally, QCOM reported a year-over-year growth of 23.5% in adjusted net income to $3.8 billion, fueled by margin improvements.
It’s important to note that the impressive topline growth was mainly due to increased equipment and service revenues; however, licensing revenues only rose by a modest 6.7% year-over-year to $1.7 billion, which fell short of market expectations.
The consensus outlook for QCOM stock remains cautiously optimistic, holding a “Moderate Buy” rating overall. Among 30 analysts covering the stock, opinions are split with 15 suggesting “Strong Buys,” 14 recommending “Holds,” and one “Strong Sell.” The average price target stands at $195.56, indicating a potential upside of 32.8% based on current price levels.
On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
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