The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 57 | 17.8x | 20.8x | Around median | |
Growth | 31 | 3.1% | 6.1% | Bottom tier | |
Quality | 91 | 27.4% | 6.6% | Top tier | |
Safety | 82 | 0.4x | 0.7x | Top tier | |
Capital Return | 60 | 2.13% | 2.02% | Around median | |
Momentum | 57 | 35.8% | 4.1% | Around median | |
Sentiment | 54 | 21 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
QUALCOMM Incorporated is a semiconductor and wireless communications company that builds its model on two clear pillars: selling chips and platforms through QCT, and licensing intellectual property through QTL. In QCT, revenue comes from processors and platforms such as Snapdragon for handsets, Snapdragon Digital Chassis for automotive, and IoT, personal computing, and edge artificial intelligence products. QTL, meanwhile, generates high-margin licensing revenue from patents and cellular communications technologies, which explains the difference between this activity’s margins and the chip business.
In the second quarter of fiscal 2026, the company reported revenue of $10.6 billion, gross profit of $5.7 billion, net income under EDGAR of $7.4 billion, and EPS of $6.88. That equates to a gross margin of about 54% and a net income margin of about 70% based on EDGAR figures, while management stated that adjusted non-GAAP EPS was $2.65 and came at the high end of guidance. In terms of mix, QCT revenue was about $9.1 billion, versus $1.4 billion in QTL, with an EBT margin of 27% in QCT and 72% in QTL.
Within QCT, handset remained the largest contributor with revenue of $6.0 billion, but it came under pressure from Chinese handset manufacturers cutting production plans because of memory dynamics. By contrast, automotive posted a record quarter with revenue of $1.3 billion and 38% year-over-year growth, while IoT revenue was about $1.7 billion with 9% year-over-year growth. Management also said that automotive and IoT revenue together grew 20% year over year, strengthening Qualcomm’s diversification story away from its historical reliance on handsets.
The analyst consensus on QCOM is neutral, with an average price target of $216, a high target of $300, and a low target of $120. I do not mention a specific real-time stock price here, so the stock’s position above or below the average target should be read from the price and automatically updated difference field outside the text. The P/E multiple is not shown in the data, making the stock’s valuation more dependent on the near-term handset trajectory and on the company’s ability to convert automotive, IoT, and artificial intelligence data centers into sustainable growth.
Figures in the text are as of 2026-06-25; the live price is shown at the top of the page.
Management said on the April 29, 2026 call that handset manufacturers, particularly in China, lowered production plans and drew down channel inventory because of higher memory prices and supply uncertainty. QCT Handset revenue was about $6.0 billion in the second quarter, and the company expects it to decline to about $4.9 billion in the third quarter. Qualcomm confirmed that its shipments to Android customers in China are far below end consumer demand, and expects the third quarter to be the bottom before a return to sequential growth.
QCT Automotive generated record revenue of $1.3 billion in the second quarter of fiscal 2026, with 38% year-over-year growth. The company said it exceeded an annualized automotive revenue run rate of more than $5 billion for the first time, and expects to exit fiscal 2026 at a run rate above $6 billion. This growth depends on Snapdragon Digital Chassis and Snapdragon Ride, with more than one million vehicles operating with ADAS and autonomy capabilities on the company’s processors.
Management explained that the Alphawave integration is progressing well and that the company is pursuing opportunities with hyperscalers, cloud service providers, and sovereign artificial intelligence projects. Qualcomm expects to begin shipping a custom product with a large hyperscaler customer in the December quarter, and described the relationship as multi-generational. News on June 25, 2026 also included a $15 billion revenue target from artificial intelligence data centers and a server deal with Meta Platforms.
Automated analysis for informational purposes only — not investment advice.
Handsets are still the largest source within QCT, as their revenue was $6.0 billion in the second quarter, but automotive and IoT are growing faster. IoT revenue was about $1.7 billion with 9% year-over-year growth, and automotive revenue was $1.3 billion with 38% year-over-year growth. The company said combined automotive and IoT revenue grew 20% year over year, and June 2026 news also included a $40 billion non-handset revenue target by 2029.
Qualcomm says agentic workloads need strong CPU processors, efficient connectivity, and a local NPU, because they run continuously in the background and coordinate multiple tasks. In PCs, the company stated that Snapdragon X2 provides an NPU of up to 85 TOPS and outperforms Intel Panther Lake by about 30% in a specific experience cited by management. In automotive, the fifth generation of Snapdragon Digital Chassis offers a 3 times increase in CPU, 3 times in GPU, and 12 times in NPU, with support for in-vehicle agents and Level 3 and Level 4 autonomous driving processing.
The closest risk is continued memory pressure on the handset market, because third-quarter guidance includes total revenue between $9.2 and $10.0 billion, below second-quarter revenue of $10.6 billion. There is also a transition in the Apple relationship, as the company assumes only a 20% share of phones launching in the fall and does not assume a product relationship after that, with sell-side models pointing to a little more than $2 billion of QCT revenue from Apple in fiscal 2027. In addition, insider activity is negative, with 39 sales and 0 purchases over 3 months and net selling of $5.7 million.