QUALCOMM IncorporatedQCOM
NasdaqGS•Technology•Semiconductors
QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software with connectivity and computing technologies for use in mobile devices; automotive systems for connectivity, digital cockpit, and ADAS/AD; and IoT, including consumer electronic devices, industrial devices, and edge networking products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing LTE, and/or OFDMA-based 5G products and derivatives; to use cellular standard-essential patents, including 3G, 4G and 5G for cellular devices. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and sells related products to the United States government agencies and their contractors. In addition, the company is also involved in Qualcomm government technologies and data center businesses. QUALCOMM Incorporated was incorporated in 1985 and is headquartered in San Diego, California.
as of March 2026
Are revenues and earnings expanding?
$44.49B in TTM revenue grew 5.2% YoY, reaching $10.60B last quarter. TTM EBITDA of $12.93B on operating income of $2.31B shows growth is flowing through. Net income of $9.92B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 21.8% is down 6.6% YoY — costs are rising relative to revenue. Net margin at 69.5% and gross margin of 53.8%. ROE of 36.4% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 24.3x P/E, the stock trades in line with market averages — fairly valued. P/S of 5.4x and P/B of 8.8x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
With $57.14B in assets and $14.77B in long-term debt, the D/E of 0.5 shows a conservative capital structure — the company has a strong financial cushion to weather downturns.
Is the business self-funding?
FCF of $1.92B on $2.45B in operating cash flow. The FCF / Net Income ratio of 0.2x indicates partial cash conversion — earnings quality needs attention. Cash reserves of $5.43B provide financial flexibility. Shares outstanding declined 3.4% YoY — buybacks are returning capital to shareholders.
Competitive analysis based on 68 quarters of fundamental data
Operating margins are positive at ~26.2% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 35.2% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (6 of 7 quarters up), with ~19.1% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 68 quarters
Operating margins declined 5.5% — watch for continued compression, which may signal competitive or cost pressure.
FCF covers net income by 0.7x on average — earnings are well-supported by cash generation.
D/E ratio is 0.5 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 4.5% — net buybacks are reducing shares outstanding and boosting per-share value.