| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 44 | 20.8x | 17.8x | Around median | |
Growth | 17 | 1.9% | 7.1% | Bottom tier | |
Quality | 89 | 19.1% | 4.5% | Top tier | |
Safety | 82 | 0.7x | 2.6x | Top tier | |
Capital Return | 61 | 1.97% | 2.12% | Around median | |
Momentum | 60 | 1.2% | 2.9% | Around median | |
Sentiment | 43 | 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 develops computing, connectivity, and semiconductor platforms serving smartphones, automotive, the Internet of Things, industrial computing, and data centers, while also generating income from licensing its intellectual property through QTL. In Q3 fiscal 2026, QCT generated $8.5 billion in revenue out of the company’s total revenue of $9.9 billion, while QTL generated $1.3 billion. Within QCT, handset revenue was $5.1 billion, Internet of Things revenue was $1.8 billion, and automotive revenue was $1.6 billion, showing that handsets remain the largest single contributor despite progress in diversification.
Q3 fiscal 2026 revenue was approximately $9.9 billion, gross profit was $5.3 billion, net income according to EDGAR data was approximately $2 billion, and earnings per share were $1.87. On a non-GAAP basis, the company reported earnings per share of $2.21, a QCT earnings-before-tax margin of 26%, and a QTL margin of 69%. Automotive posted a record quarter with revenue of $1.6 billion and year-over-year growth of 61%, while Internet of Things revenue increased 9% to $1.8 billion, and non-handset QCT revenue grew 28%.
QUALCOMM’s strategy through fiscal 2029 is based on shifting its business mix toward automotive, the Internet of Things, and data centers. Management raised its combined automotive and Internet of Things revenue target to more than $24 billion and set a target exceeding $15 billion for data centers, bringing the total non-handset revenue target to $40 billion in fiscal 2029, compared with a previous target of $22 billion. In Q3 fiscal 2026, the company returned $2.3 billion to shareholders, including $1.4 billion in share repurchases and $937 million in dividends.
The average analyst target is $205.2 with a “Neutral” consensus, but the wide range of targets between $120 and $400 reveals substantial disagreement over QUALCOMM’s ability to offset declines in Apple and handsets through growth in automotive and data centers. The average target is below the 52-week range high of $259.92, while the lowest target is close to the range low of $121.99; the available data does not include a reliable earnings multiple, so the valuation is based primarily on execution against the fiscal 2027 and fiscal 2029 targets versus margin and supply pressures.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
QUALCOMM generated revenue of $9.9 billion, gross profit of $5.3 billion, and net income according to EDGAR data of approximately $2 billion. Earnings per share according to EDGAR were approximately $1.87, while non-GAAP earnings per share were $2.21. QCT recorded revenue of $8.5 billion and an earnings-before-tax margin of 26%, compared with revenue of $1.3 billion and a margin of 69% for QTL.
Q3 fiscal 2026 results showed that non-handset QCT revenue grew 28% year over year. Automotive revenue reached a record $1.6 billion, up 61%, and Internet of Things revenue reached $1.8 billion, up 9%. However, handsets remained the largest single business within QCT, with revenue of $5.1 billion, so diversification is not yet complete.
QUALCOMM expects its share of the upcoming iPhone launch to be significantly below its previous estimate of 20% because of supply constraints and the outcome of discussions with the customer. Management expects Apple revenue to decline by approximately 50% from the September quarter to the December quarter and Apple product revenue in fiscal 2027 to be below the previous guidance of slightly more than $2 billion. The company is relying on non-handset business growth of more than 60% in fiscal 2027 to replace all Apple revenue recorded in fiscal 2026.
Automated analysis for informational purposes only — not investment advice.
The company is developing four product categories, including connectivity in fiscal 2026, custom chips and AI accelerators in fiscal 2027, and server central processing units in fiscal 2028. Wafer production has begun for two projects with global hyperscalers, and the company expects revenue to begin in the December quarter. The HBC Gen 1 design is also complete, with the first launch targeted for mid-2027. Management is targeting data center revenue of $5 billion in fiscal 2027 and $15 billion in fiscal 2029, while the acquisition of Modular Inc. adds a hardware-agnostic software stack.
Wafer fabrication, assembly, testing, advanced packaging, and memory costs are rising, alongside supply shortages and some handset manufacturers shifting to previous chip generations. Management therefore expects QCT gross margin to temporarily fall below its historical range of 48% to 50% and QCT earnings-before-tax margin to be 23%–25% in Q4 fiscal 2026. The company is implementing double-digit price increases across multiple markets but expects their impact to emerge gradually over several quarters because of contracts and product cycles.
Automotive revenue reached $1.6 billion in Q3 fiscal 2026, up 61% year over year, and the company raised its forecast for the annualized sales rate at the end of fiscal 2026 to approximately $7 billion. BMW selected QUALCOMM as a primary computing supplier for its next generation of advanced driver-assistance systems and digital cockpits, with vehicle programs extending into the next decade, while the Stellantis collaboration extends into the 2030s. The fifth generation of Snapdragon Digital Chassis begins ramping in September 2026, with a significant increase in computing content per vehicle.
