Key Takeaways
- QCOM shares climbed 11.12% on Friday, finishing at $148.85
- Q2 fiscal 2026 results scheduled for April 29 after close; company projects $10.2B–$11B in revenue
- February global chip sales reached $88.8B, representing 61.8% annual growth
- $20B stock repurchase program approved; quarterly payout increased to $0.92
- Wall Street maintains Hold consensus with $158.25 mean target
Qualcomm (QCOM) experienced an 11.12% gain on Friday, reaching $148.85 at the closing bell. The advance occurred as market participants prepared for the chipmaker’s second-quarter fiscal 2026 financial results, scheduled for release after trading ends on April 29.
The Friday surge brings renewed attention to QCOM following a challenging 2026 opening. Shares remain approximately 13% lower year-to-date, trading between a 52-week range of $121.99 and $205.95.
Management has issued Q2 revenue guidance between $10.2B and $11B. This forecast represents a range from flat to negative 7% versus the prior year’s $10.98B. The company anticipates GAAP diluted earnings per share of $1.69 to $1.89, compared with $2.52 in the year-ago quarter.
Friday’s options market showed heightened interest. Approximately 120,444 call contracts changed hands — representing a 165% increase over typical daily volume — indicating bullish sentiment ahead of the earnings announcement.
Chip Industry Momentum Provides Support
Friday’s stock movement benefited from positive momentum across the semiconductor industry. Data from the Semiconductor Industry Association revealed February worldwide chip sales totaled $88.8B, marking a 61.8% jump from $54.9B one year prior and a 7.6% monthly increase from January 2026.
SIA President John Neuffer noted that demand from Asia-Pacific markets, the Americas, and China contributed significantly to growth. The organization forecasts approximately $1 trillion in annual global semiconductor sales for the current year.
Qualcomm’s strategic focus on edge AI computing has attracted fresh investor attention. Market observers view the company as well-positioned to capitalize on artificial intelligence demand extending beyond conventional smartphone applications.
However, challenges persist. Wall Street analysts have pointed to softening smartphone unit sales, elevated memory component pricing, and scarce near-term catalysts in the handset segment. Morgan Stanley carries an underweight stance with a $132 price objective. Sanford C. Bernstein maintains a market perform rating at $140.
Conversely, Piper Sandler rates shares overweight with a $200 target, while Rosenblatt continues recommending a buy with an updated $190 price goal.
Capital Return Initiatives
In March, Qualcomm’s board of directors greenlit a $20B stock repurchase authorization — potentially covering up to 14.5% of shares currently outstanding. The board simultaneously elevated the quarterly cash dividend from $0.89 to $0.92 per share, with payment scheduled for June 25 to shareholders of record as of June 4. This translates to an annualized dividend of $3.68, yielding 2.5% at current prices.
First-quarter results showed earnings per share of $3.50, surpassing analyst expectations of $3.38. Revenue totaled $12.25B, exceeding the $12.16B consensus forecast. The company delivered return on equity of 44.09%.
Institutional investors control 74.35% of outstanding shares. Concurrent Investment Advisors expanded its position by 66.2% during Q4, acquiring an additional 35,166 shares for a total holding of 88,257.
Executive selling activity included two EVPs divesting a combined 6,533 shares in early February at prices ranging from $137 to $137.65. Total insider dispositions over the trailing three-month period reached 9,118 shares valued at approximately $1.23M.
Analyst consensus currently stands at Hold, with a mean price target of $158.25. For Q2, the company has provided EPS guidance of $2.45 to $2.65.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
