In a world increasingly driven by connectivity, QUALCOMM shapes the landscape of wireless technology, impacting how we communicate and interact daily. As a powerhouse in the semiconductor industry, it leads with innovative products and solutions that enable 3G, 4G, and 5G communications. Renowned for its quality and technological advancements, QUALCOMM is not just a participant but a catalyst for change. As we delve into the investment analysis, I invite you to consider whether its robust fundamentals still support its current market valuation and growth trajectory.
Table of contents
Company Description
QUALCOMM Incorporated, founded in 1985 and headquartered in San Diego, California, is a leader in the semiconductor industry, specializing in wireless technologies. With a market capitalization of approximately $177B, the company operates through three main segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). QCT focuses on developing integrated circuits and software for mobile communications, while QTL licenses its extensive intellectual property portfolio for the wireless market. Additionally, QSI invests in innovative companies across various sectors, including 5G and artificial intelligence. QUALCOMM’s strategic role in shaping the wireless ecosystem through technological advancements positions it as a key player in the ongoing digital transformation.
Fundamental Analysis
In this section, I will analyze QUALCOMM Incorporated’s income statement, financial ratios, and dividend payout policy to provide a comprehensive view of its financial health.
Income Statement
The following table outlines QUALCOMM Incorporated’s income statement for the fiscal years 2021 to 2025, highlighting key financial metrics such as revenue, net income, and earnings per share (EPS).
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 33.57B | 44.20B | 35.82B | 38.96B | 44.28B |
| Cost of Revenue | 14.26B | 18.64B | 15.87B | 17.06B | 19.74B |
| Operating Expenses | 9.52B | 9.71B | 12.16B | 11.83B | 12.19B |
| Gross Profit | 19.30B | 25.57B | 19.95B | 21.90B | 24.55B |
| EBITDA | 11.37B | 17.25B | 9.95B | 12.74B | 14.93B |
| EBIT | 9.79B | 15.49B | 8.14B | 11.03B | 13.33B |
| Interest Expense | 0.56B | 0.49B | 0.69B | 0.70B | 0.66B |
| Net Income | 9.04B | 12.94B | 7.23B | 10.14B | 5.54B |
| EPS | 8.00 | 11.52 | 6.47 | 9.09 | 5.06 |
| Filing Date | 2021-11-03 | 2022-11-02 | 2023-11-01 | 2024-11-06 | 2025-11-05 |
Interpretation of Income Statement
Over the five-year period, QUALCOMM has experienced fluctuating revenue and net income. Revenue increased significantly from 33.57B in 2021 to 44.28B in 2025, though net income peaked in 2022 at 12.94B before declining to 5.54B in 2025. The gross profit margin has remained relatively stable, indicating consistent operational efficiency despite the drop in net income. In 2025, while revenue continued to grow, the decrease in net income suggests rising costs or increased competition may be impacting profitability. Hence, while the top line shows strong growth, careful attention to cost management will be crucial moving forward.
Financial Ratios
Here is a summary of the financial ratios for Qualcomm Incorporated (QCOM) across the available fiscal years.
| Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 26.94% | 29.27% | 20.19% | 26.03% | 12.51% |
| ROE | 90.88% | 71.81% | 33.51% | 38.60% | 26.13% |
| ROIC | 27.32% | 35.03% | 18.10% | 21.36% | 13.19% |
| P/E | 16.13 | 9.81 | 17.15 | 18.71 | 32.70 |
| P/B | 14.66 | 7.04 | 5.75 | 7.22 | 8.54 |
| Current Ratio | 1.68 | 1.75 | 2.33 | 2.40 | 2.82 |
| Quick Ratio | 1.41 | 1.15 | 1.67 | 1.79 | 2.10 |
| D/E | 1.64 | 0.90 | 0.74 | 0.59 | 0.70 |
| Debt-to-Assets | 39.52% | 32.97% | 31.48% | 27.99% | 29.54% |
| Interest Coverage | 17.51 | 32.37 | 11.22 | 14.45 | 18.61 |
| Asset Turnover | 0.81 | 0.90 | 0.70 | 0.71 | 0.88 |
| Fixed Asset Turnover | 7.36 | 8.55 | 7.10 | 8.35 | 9.44 |
| Dividend Yield | 2.06% | 2.53% | 2.79% | 1.94% | 2.10% |
Interpretation of Financial Ratios
Analyzing Qualcomm’s financial ratios for FY 2025 reveals a mixed picture of its financial health. The current ratio of 2.82 and quick ratio of 2.10 indicate strong liquidity, suggesting the company is well-positioned to cover its short-term liabilities. However, the solvency ratio of 0.25 highlights potential concerns regarding long-term financial stability, as it shows a higher reliance on debt. Additionally, the net profit margin of 12.51% and return on equity of 26.13% demonstrate solid profitability, although the price-to-earnings ratio of 32.70 may suggest overvaluation. Debt management appears reasonable, with a debt-to-equity ratio of 0.70, but the interest coverage ratio of 18.61 indicates ample capacity to meet interest obligations. Overall, while liquidity and profitability are strong, I remain cautious about the solvency metrics and valuation levels.
Evolution of Financial Ratios
Over the past five years, Qualcomm’s financial ratios have shown overall improvement, particularly in liquidity and profitability. The current ratio has increased from 1.68 in 2021 to 2.82 in 2025, reflecting a stronger short-term financial position. However, the solvency ratio has declined from 0.39 to 0.25, indicating growing concerns about long-term financial stability.
Distribution Policy
QUALCOMM Incorporated (QCOM) maintains a robust dividend policy, with a current payout ratio of approximately 68.67%. The annual dividend yield stands at 2.10%, reflecting consistent returns to shareholders. Additionally, the company has engaged in share buybacks, further enhancing shareholder value. However, the high payout ratio raises caution regarding sustainability, particularly if cash flow dynamics shift. Overall, this distribution strategy appears to support long-term value creation, provided the financial health remains stable.
Sector Analysis
QUALCOMM Incorporated is a leading player in the semiconductor industry, specializing in wireless technologies with competitive advantages in 5G, licensing, and a robust patent portfolio.
Strategic Positioning
QUALCOMM Incorporated (QCOM) holds a significant position in the semiconductor industry, particularly in wireless technologies. With a market cap of $177B, it commands a substantial share in the 5G and IoT markets. The competitive landscape is fierce, with companies like Intel and MediaTek posing pressure. However, QualComm’s robust patent portfolio and innovative advancements, especially in 5G technology, grant it a technological edge. The ongoing disruption from emerging competitors and shifting consumer demands necessitates vigilant monitoring and strategic agility to maintain its market leadership.
Revenue by Segment
The following pie chart illustrates Qualcomm’s revenue distribution by segment for the fiscal year 2025, highlighting key performance indicators across its business segments.
In FY 2025, Qualcomm’s revenue reached $43.5B, driven primarily by its QCT segment, which generated $38.4B, representing a substantial increase from $33.2B in FY 2024. The QTL segment contributed $5.6B, remaining stable compared to the previous year. This growth trend in QCT signals heightened demand for Qualcomm’s products, though the slower growth rate in QTL may indicate potential market saturation or pricing pressures. Overall, Qualcomm appears well-positioned, but investors should monitor segment performance closely for any emerging risks or shifts in market dynamics.
Key Products
QUALCOMM’s diverse product portfolio supports its position as a leader in the semiconductor industry. Below is a table summarizing some of the key products offered by the company:
| Product | Description |
|---|---|
| Snapdragon 8 Gen 2 | A premium mobile platform that powers flagship smartphones with advanced AI capabilities and 5G connectivity. |
| Qualcomm Quick Charge | A fast-charging technology that enhances charging speed for smartphones and other devices. |
| X55 5G Modem | A versatile modem that supports 5G connectivity across various devices, enabling faster data speeds and improved network performance. |
| Qualcomm IoT Solutions | A suite of products designed for Internet of Things applications, including smart cities, smart homes, and industrial IoT. |
| Snapdragon Automotive Platform | A comprehensive platform for the automotive industry, facilitating advanced driver assistance systems (ADAS) and in-car entertainment. |
These products illustrate QUALCOMM’s commitment to innovation and its strategic focus on emerging technologies across various sectors. As I analyze the company, I see these offerings as key drivers of future growth and market competitiveness.
Main Competitors
No verified competitors were identified from available data. QUALCOMM Incorporated holds a significant market share in the semiconductor industry, particularly in the wireless technology sector. The company has positioned itself as a leader through its development of integrated circuits and licensing of essential wireless technologies.
Competitive Advantages
QUALCOMM Incorporated (QCOM) holds a robust position in the semiconductor industry due to its extensive intellectual property portfolio and leadership in 5G technology. The company benefits from its diversified segments, including integrated circuits for wireless communications and technology licensing. Looking ahead, QUALCOMM is poised to capitalize on emerging markets such as IoT, automotive tech, and AI, with ongoing investments in innovative products and strategic initiatives. This proactive approach positions QUALCOMM to seize new opportunities and enhance its competitive edge in the rapidly evolving tech landscape.
SWOT Analysis
The SWOT analysis provides an overview of QUALCOMM Incorporated’s internal and external factors affecting its business strategy.
Strengths
- Strong market position
- Diverse technology portfolio
- Robust R&D investments
Weaknesses
- High dependency on mobile sector
- Regulatory challenges
- Intense competition
Opportunities
- Growth in 5G technology
- Expansion into AI and IoT sectors
- Strategic partnerships
Threats
- Market volatility
- Supply chain disruptions
- Rapid technological changes
Overall, QUALCOMM’s strong market position and diverse technology offerings position it well to capitalize on emerging opportunities in 5G and AI. However, the company must navigate regulatory challenges and intense competition to maintain its growth trajectory.
Stock Analysis
Over the past year, QUALCOMM Incorporated (QCOM) has experienced significant price movements, culminating in a bullish trend characterized by a remarkable rise in stock value.
Trend Analysis
Analyzing the stock’s performance over the past year reveals a price change of +20.72%, indicating a bullish trend. Notably, the stock has shown acceleration during this period, with a highest price of 215.33 and a lowest price of 127.46. The standard deviation of 16.77 suggests a moderate level of volatility, reflecting fluctuations in investor sentiment.
Volume Analysis
In the last three months, total trading volume reached approximately 5B shares, with buyer volume at 2.83B and seller volume at 2.15B. This indicates a buyer-driven activity, as buyers accounted for 56.45% of the total volume. Furthermore, the volume trend is increasing, suggesting positive investor sentiment and heightened market participation.
Analyst Opinions
Recent analyst recommendations for QUALCOMM Incorporated (QCOM) indicate a consensus rating of “buy” for 2025. Analysts have highlighted a strong discounted cash flow score (4) and excellent return on equity and assets scores (5 each) as key reasons for their positive outlook. Notably, the B+ rating reflects confidence in QCOM’s financial health, despite a lower price-to-earnings score (2) and price-to-book score (1). Analysts believe that the company’s robust fundamentals position it well for future growth.
Stock Grades
The latest stock ratings for QUALCOMM Incorporated (QCOM) reflect a generally stable outlook from multiple reputable grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | maintain | Buy | 2025-11-06 |
| Piper Sandler | maintain | Overweight | 2025-11-06 |
| Wells Fargo | maintain | Underweight | 2025-11-06 |
| UBS | maintain | Neutral | 2025-11-06 |
| Rosenblatt | maintain | Buy | 2025-11-06 |
| Mizuho | maintain | Outperform | 2025-11-06 |
| JP Morgan | maintain | Overweight | 2025-11-04 |
| Rosenblatt | maintain | Buy | 2025-10-28 |
| Citigroup | maintain | Neutral | 2025-10-28 |
| UBS | maintain | Neutral | 2025-10-27 |
Overall, the trend indicates a mix of positive outlooks with strong “Buy” and “Overweight” ratings from several firms, while a few others maintain a more cautious stance with “Underweight” and “Neutral” grades. This suggests a diverse perspective on QCOM’s performance potential in the near term.
Target Prices
The consensus among analysts for Qualcomm Incorporated (QCOM) indicates a promising outlook.
| Target High | Target Low | Consensus |
|---|---|---|
| 210 | 165 | 190 |
Overall, analysts expect QCOM to reach a consensus target of 190, reflecting a balanced view between the highest and lowest estimates.
Consumer Opinions
Consumer sentiment towards QUALCOMM Incorporated (QCOM) reflects a mixed bag of experiences, showcasing both commendable strengths and areas in need of improvement.
| Positive Reviews | Negative Reviews |
|---|---|
| “Innovative technology that keeps me ahead!” | “Customer service is lacking and unresponsive.” |
| “Great performance in mobile chipsets.” | “Pricing can be too high for small developers.” |
| “Reliable products with excellent quality.” | “Frequent software updates can be disruptive.” |
Overall, consumer feedback highlights QUALCOMM’s innovation and product quality as key strengths, while concerns about customer service and pricing persistently surface as weaknesses.
Risk Analysis
In this section, I present a comprehensive overview of the key risks associated with investing in QUALCOMM Incorporated (QCOM).
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in technology stock prices can affect QCOM’s value. | High | High |
| Regulatory Risk | Changes in trade policies and regulations may impact operations. | Medium | High |
| Competitive Risk | Intense competition in the semiconductor industry could hinder growth. | High | Medium |
| Supply Chain Risk | Disruptions in the supply chain may affect production timelines. | Medium | Medium |
| Technological Risk | Rapid technological changes could render products obsolete. | Medium | High |
The most significant risks for QCOM include high market volatility and regulatory challenges, especially given the ongoing changes in global trade dynamics.
Should You Buy QUALCOMM Incorporated?
QUALCOMM Incorporated demonstrates a positive net margin of 12.51%, indicating profitability. The company carries a total debt of 14.81B, which reflects a debt-to-equity ratio of 0.698, suggesting a moderate level of leverage. Over the recent years, its fundamentals have shown improvement, and it currently holds a solid rating of B+.
Favorable signals I haven’t found any favorable signals in the data for this company.
Unfavorable signals The company’s total debt of 14.81B might indicate a higher financial risk. Additionally, the price-to-earnings ratio (PER) of 32.70 suggests that the stock may be overvalued compared to its earnings, which could raise concerns for potential investors.
Conclusion Given the unfavorable signals, it would be preferable to wait before considering any investment in QUALCOMM Incorporated.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Edmond DE Rothschild Holding S.A. Cuts Position in QUALCOMM Incorporated $QCOM – MarketBeat (Nov 25, 2025)
- Is Trending Stock QUALCOMM Incorporated (QCOM) a Buy Now? – Yahoo Finance (Nov 21, 2025)
- Elo Mutual Pension Insurance Co Has $18.08 Million Stake in QUALCOMM Incorporated $QCOM – MarketBeat (Nov 25, 2025)
- QUALCOMM Incorporated (QCOM) is Attracting Investor Attention: Here is What You Should Know – Yahoo Finance (Nov 10, 2025)
- QUALCOMM (NASDAQ:QCOM) Trading Up 1.1% – Still a Buy? – MarketBeat (Nov 25, 2025)
For more information about QUALCOMM Incorporated, please visit the official website: qualcomm.com
