Key Highlights
- QCOM climbed 11.12% on Friday, reaching $148.85 at the close
- Q2 fiscal 2026 earnings scheduled for April 29 after market hours; revenue expected between $10.2B and $11B
- Worldwide semiconductor sales reached $88.8B in February, representing a 61.8% year-over-year increase
- Company’s board greenlit a $20B stock repurchase program; quarterly dividend increased to $0.92
- Wall Street consensus stands at Hold with an average target price of $158.25
Qualcomm (QCOM) experienced an 11.12% surge on Friday, finishing the session at $148.85. The advance occurred as market participants prepared for the chipmaker’s Q2 fiscal 2026 financial results, scheduled for release after the closing bell on April 29.
The Friday rally brings QCOM back into the spotlight following a challenging opening to 2026. Year-to-date, the shares remain lower by approximately 13%, trading within a 52-week range that spans from $121.99 to $205.95.
For the second quarter, Qualcomm has issued revenue guidance ranging from $10.2B to $11B. This represents a sequential decline of up to 7% when compared to the $10.98B reported in the corresponding quarter of the previous year. The company projects GAAP diluted earnings per share between $1.69 and $1.89, down from $2.52 in the year-ago period.
Options market activity on Friday revealed significant bullish sentiment. Approximately 120,444 call contracts changed hands — representing a volume increase of roughly 165% above typical daily levels — indicating robust optimism among traders approaching the earnings announcement.
Broad Semiconductor Industry Momentum
Friday’s price appreciation received support from strength across the broader chip sector. Data from the Semiconductor Industry Association revealed global chip sales totaled $88.8B in February, marking a 61.8% climb from the $54.9B recorded in February of the prior year and a 7.6% sequential increase from January 2026.
SIA President John Neuffer attributed the growth to robust demand from Asia-Pacific, the Americas, and China. He projected that annual worldwide semiconductor sales would approach the $1 trillion threshold this year.
Qualcomm’s strategic focus on “AI at the edge” has captured renewed attention from the investment community. The company has been identified as a potential winner from artificial intelligence demand expanding beyond conventional smartphone applications.
Challenges persist, however. Analysts have pointed to softness in smartphone demand, escalating memory component costs, and a lack of near-term growth catalysts in the handset segment. Morgan Stanley maintains an underweight stance with a $132 price objective. Sanford C. Bernstein rates the stock at market perform with a $140 target.
Among the optimistic voices, Piper Sandler carries an overweight rating alongside a $200 target, while Rosenblatt continues to recommend the stock with a buy rating and a revised $190 price objective.
Capital Return Initiatives
In March, Qualcomm’s board of directors approved a $20B share repurchase authorization — representing coverage for up to 14.5% of shares outstanding. The company simultaneously increased its 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. The annualized dividend now stands at $3.68, yielding approximately 2.5%.
During the first quarter, Qualcomm delivered earnings per share of $3.50, surpassing the Street consensus of $3.38. Revenue totaled $12.25B, exceeding the $12.16B analyst estimate. The company reported return on equity of 44.09%.
Institutional investors hold 74.35% of outstanding shares. Concurrent Investment Advisors expanded its position by 66.2% during the fourth quarter, acquiring an additional 35,166 shares to bring its total holdings to 88,257.
Regarding insider transactions, two Executive Vice Presidents divested a combined 6,533 shares in early February at prices ranging from $137 to $137.65. Aggregate insider sales over the trailing three-month period totaled 9,118 shares valued at approximately $1.23M.
The Street consensus rating currently sits at Hold, with an average analyst price target of $158.25. Guidance for Q2 earnings per share has been established in the $2.45 to $2.65 range.
