Qualcomm Incorporated (QCOM) has revised its earnings estimates downward for fiscal years 2026 and 2027, reflecting a 7.3% decrease to $11.20 and an 8.4% decrease to $11.45 per share, respectively. This shift comes amid ongoing U.S.-China trade tensions affecting Qualcomm’s operations and growth potential, particularly in China where the company has a significant presence.
For Q2 of fiscal 2026, Qualcomm anticipates GAAP revenues between $10.2 billion and $11 billion, citing reduced handset revenue expectations near $6 billion due to decreased chip orders. The company faces challenges from high operating expenses, increased competition from rivals like Broadcom and Hewlett Packard, and a general softness in consumer demand, especially in China’s mobile market.
Over the past year, Qualcomm’s stock has decreased by 15%, while its industry peers, such as Hewlett Packard and Broadcom, have seen gains of 35.8% and 69.7%, respectively. The company is currently positioned with a Zacks Rank of #5 (Strong Sell), as investor sentiment remains negatively impacted by these factors.
