Qualcomm (QCOM)
Information Technology · $181B market cap · SEC CIK 0000804328
ahead of 50% of the S&P 500 · #40 of 73 in Information Technology
Next reports on Feb 2, 2027, with analysts expecting $2.30 in earnings per share.
52-week range $121.99 to $259.92. 33% below its 52-week high and 42% above its low.
The case for QCOM
- Earns 50% back on shareholder equity.
- Generated $8.7B of free cash flow in FY2026, 20% of revenue.
- 32% of revenue drops through to net profit.
- Earnings per share up 159.6%.
- Pays a 2.5% dividend while you wait.
- Reasonably priced for its growth: 13.3× earnings, where 4% a year of growth plus a 2.5% dividend would justify about 18×.
The case against
- Revenue slipped 2.6% on the year.
- Swings harder than the market (beta 1.79).
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 57 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 37 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 74 |
| Momentumhow the price has behaved lately | 49 |
| Stabilityhow violently it moves, what it owes and what it pays you | 61 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
The financials
Revenue growth
Is the business growing? No, shrinking
| Last 12 months | −2.6% |
|---|---|
| Over 5 years | +5.1% a year |
| FY2026 revenue | $43.1B (−3%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2026 free cash flow | $8.7B |
|---|---|
| Of revenue | 20% |
| Of profit | 63% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 53% |
|---|---|
| Operating margin | 20% |
| Net margin, FY25 → FY26 → now | 12.5% → 31.6% → 31.6% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $4.6B |
|---|---|
| Long-term debt | $12.6B |
| Net debt | $8.0B |
| Years to repay | 1.1 yrs |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 13.3× |
|---|---|
| Fair P/E for its growth | 18× |
| P/FCF | 21.0× |
| Forward P/E | 16.4× |
| EV / EBITDA | 18.8× |
At 13.3× earnings it trades below the 18× that 4% a year of growth plus a 2.5% dividend would justify. At 21.0× free cash flow it trades close to that same mark.
The financials, five years deep
Pulled from Qualcomm's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $43.1B | $44.3B | $39.0B | $35.8B | $44.2B |
| Change on the year | −3% | +14% | +9% | −19% | — |
| Free cash flow | |||||
| Free cash flow | $8.7B | $12.8B | $11.2B | $9.8B | $6.8B |
| Of revenue | 20% | 29% | 29% | 27% | 15% |
| Profit margins | |||||
| Operating margin | 20.1% | 27.9% | 25.8% | 21.7% | 35.9% |
| Net margin | 31.6% | 12.5% | 26.0% | 20.2% | 29.3% |
| Debt vs. cash | |||||
| Cash | $4.6B | $5.5B | $7.8B | $8.4B | $2.8B |
| Long-term debt | $12.6B | $14.8B | $13.3B | $14.5B | $13.5B |
| Net cash (debt) | −$8.0B | −$9.3B | −$5.4B | −$6.0B | −$10.8B |
What Qualcomm says it does
We incorporated in California in 1985 and reincorporated in Delaware in 1991. We operate and report using a 52-53 week fiscal year ending on the last Sunday in September. Our 52-week fiscal years consist of four equal fiscal quarters of 13 weeks each, and our 53-week fiscal years consist of three 13-week fiscal quarters and one 14-week fiscal quarter. The financial results for our 53-week fiscal years and our 14-week fiscal quarters will not be exactly comparable to our 52-week fiscal years and our 13-week fiscal quarters. Our fiscal years for 2026, 2025 and 2024 included 52 weeks, 52 weeks and 53 weeks, respectively. Our fiscal year for 2027 will include 52 weeks. Overview We are a global technology leader, helping to bring intelligent computing everywhere through the development and commercialization of foundational technologies, including advanced artificial intelligence (AI), high-performance and low-power computing and leading…