Qualcomm Q3 EPS Tops Estimates by $0.13; Revenue Up 10% to $11.27B, Guides Q1 EPS to $3.30-$3.50
Qualcomm reported Q3 EPS of $3.00, beating estimates by $0.13, and revenue rose 10% to $11.27 billion year-over-year while guiding Q1 2026 EPS to $3.30-$3.50. Bank of America raised its price target to $215, Piper Sandler and Mizuho lifted targets to $200 and UBS to $185.
1. Hedge Fund Position Changes
In the third quarter, Deprince Race & Zollo Inc. trimmed its Qualcomm stake by 2.0%, selling 3,044 shares and ending the period with 149,132 shares valued at $24.81 million. Other notable moves include Harbor Capital Advisors increasing its position by 72.2% to 155 shares, and several firms—Chung Wu Investment Group LLC, Harbor Asset Planning Inc., Winnow Wealth LLC and Lavaca Capital LLC—initiating new positions of roughly $32,000 each in the second quarter. Institutional investors and hedge funds collectively hold 74.35% of the company’s shares, underscoring continued confidence among large market participants despite some reallocations.
2. Analyst Upgrades and Price Targets
On November 6th, Bank of America raised its Qualcomm target from $200 to $215 and maintained a Buy rating; on the same day Mizuho lifted its target from $185 to $200 with an Outperform designation; Piper Sandler increased its target from $175 to $200 and reiterated an Overweight stance; and UBS bumped its target from $175 to $185 while keeping a Neutral view. Earlier, Citigroup moved its objective from $170 to $175 with a Neutral rating. Of the 21 analysts covering the stock, 13 rate it Buy, seven Hold and one Sell, resulting in a consensus Moderate Buy and an average target of $192.94.
3. Q4 Earnings Beat and 2026 Outlook
In its November 5th report, Qualcomm posted adjusted EPS of $3.00, surpassing the $2.87 consensus by 4.5%, and generated revenue of $11.27 billion, up 10.0% year-over-year and $0.53 billion above forecasts. Net margin stood at 12.51% and return on equity at 43.22%. For Q1 2026, management guided adjusted EPS between $3.30 and $3.50. Wall Street currently projects full-year EPS of 9.39, reflecting anticipated strength in handset chip sales, 5G licensing royalties and growing automotive and IoT segments.
4. Dividend Policy and Insider Activity
The board declared a quarterly dividend of $0.89, paid December 18th to holders of record as of December 4th, implying a $3.56 annualized distribution and a 72.8% payout ratio. In insider transactions, EVP Ann C. Chaplin sold 7,180 shares at an average of $178.03, reducing her stake by 23.1%, and CEO Cristiano Amon offloaded 150,000 shares at $165.56, halving his holdings. Over the past three months, total insider dispositions reached 199,822 shares valued at approximately $33.52 million, while insider ownership remains under 0.1% of the float.