Qualcomm Inc.

QCOM
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$10.6B
Q2 FY2026 · -4% YoY
TTM ROIC
42.1%
FY2025 · NOPAT / Invested Capital (NOPAT uses normalized 20% tax rate; Invested Capital = Equity + Debt − Cash) · WACC ~9.5% · Moat spread +20.5pp

Financial Snapshot


ticker: QCOM step: 04 generated: 2026-05-12 source: quick-research

QUALCOMM Incorporated (QCOM) — Financial Snapshot

(Qualcomm's fiscal year ends in late September; FY2025 = year ending ~Sept 2025.)

Income Statement Summary

Metric FY2023 FY2024 FY2025 YoY (FY25)
Revenue (Non-GAAP) $35.8B $38.96B $44.14B +13%
Non-GAAP Operating Margin ~28% ~30% ~31% +100 bps
QCT Operating Margin ~26% ~28% 30% +200 bps
Non-GAAP EPS $8.43 $10.22 $12.30 +20%
GAAP EPS $5.40 $9.40 $11.20 +19%
Free Cash Flow $9.7B $11.2B $12.8B +14% (record)

Segment Detail (Q4 FY2025 + FY2025 totals)

Segment Q4 FY25 YoY (Q4) FY25 Full Year Trends
QCT (total) $9.8B +13% +16% FY YoY (non-Apple +18%)
- Handsets $7.0B +14% +14% FY YoY
- IoT $1.8B +7% +22% FY YoY
- Automotive $1.1B +17% +36% FY YoY (Auto+IoT combined +27%)
QTL (licensing) $1.4B -7% low-single-digit decline

Cash Flow & Capital Allocation (FY2025)

Metric Value
Operating Cash Flow ~$13B
Free Cash Flow $12.8B (record)
Capital Expenditures ~$0.2B (asset-light fabless)
Share Repurchases ~$5B
Dividends Paid ~$3.8B
Quarterly Dividend $0.89
Dividend Yield ~2.5%
Buyback Authorization Remaining ~$20B
Cash & Marketable Securities ~$13B
Total Debt ~$15B
Net Cash Position ~+$-2B (mostly net neutral)

FY2026 Q1 Guidance

Metric Q1 FY26 Guide
Revenue $11.8–12.6B
Non-GAAP EPS $3.30–3.50
QCT Revenue (implied) ~$10.0–10.7B

Key Ratios (approximate)

  • P/E: ~13x (FY26 non-GAAP) | EV/EBITDA: ~11x | FCF Yield: ~7.3%
  • Revenue Growth (FY25): +13% non-GAAP | FCF Margin: ~29%
  • Non-GAAP Operating Margin: ~31% | QCT Operating Margin: 30%
  • Dividend Yield: ~2.5% | Buyback Yield: ~3% (sustained)
  • ROIC: ~30%+

Growth Profile

FY25 was a banner year — record FCF $12.8B, record revenue $44.1B, non-GAAP EPS $12.30 (+20%). The strategic narrative is diversification ahead of the Apple cliff: non-Apple QCT revenue grew +18% in FY25; Automotive grew +36%; IoT grew +22%. The Apple modem revenue trajectory — declining to ~20% share in 2026 and 0% by 2027 — is the binding constraint on QCOM's narrative. Bull thesis: Automotive + IoT + AI PC + Android growth more than offsets Apple decline; consensus models build conservatively. Bear thesis: Apple cliff in 2027 produces a 12-24 month earnings air-pocket as automotive/IoT scale.

The Snapdragon X2 Elite AI PC launch (CES 2026, 80 TOPS NPU) is a key new platform; Q1 FY26 guide of $11.8–12.6B with EPS $3.30–3.50 (~$13.20 annualized) implies continued mid-teens revenue growth.

Forward Estimates

FY2026 Annual (consensus):

  • Revenue: ~$47–49B (+8–11%)
  • Non-GAAP EPS: ~$13.50–14.50 (+10–18%)

Bull case: AI PCs ramp faster than expected; Automotive sustains +30%+; Android premium SoC growth holds; multiple expands to 16–18x P/E. Bear case: Apple modem cliff hits in FY27 (down $3–4B revenue overnight); Automotive ramp slower than $6B exit run-rate target; multiple compresses to 10x P/E on earnings air-pocket. Consensus targets ~$190–220 vs. trading ~$155–170 (~20–35% implied upside).

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $QCOM.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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