Qualcomm (QCOM) Stock: CEO Dumps $25M as Price Falls Despite Revenue Beat

TLDR

• Qualcomm shares dropped 4.2% to $166.75 on Monday despite reporting Q4 earnings that beat analyst expectations with $3.00 EPS versus $2.87 consensus and $11.27 billion in revenue.
• CEO Cristiano Amon sold 150,000 shares worth $24.8 million in October, reducing his position by over 50%, while the company announced a $0.89 quarterly dividend.
• Analysts raised price targets following the earnings beat, with Susquehanna at $210, Mizuho at $200, and Rosenblatt at $225, though the stock trades below the $190.38 consensus target.
• The chipmaker faces a new patent lawsuit and regulatory scrutiny over its $2.4 billion Alphawave Semi acquisition while expanding into AI accelerators and automotive chips.
• Trading volume increased 16% above average as the company provided Q1 FY2026 guidance of $3.30-$3.50 EPS with full-year analyst estimates around $9.39.

Qualcomm closed 4.2% lower at $166.75 on Monday as investors took profits despite the company posting fourth quarter results that exceeded Wall Street forecasts.

QUALCOMM Incorporated, QCOM

The wireless technology company reported earnings per share of $3.00, topping estimates of $2.87. Revenue reached $11.27 billion, climbing 10% year-over-year and surpassing analyst projections.

Trading volume jumped to 10.19 million shares, 16% higher than the typical daily average. The stock had closed at $173.98 in the previous session.

The company’s QCT chip division powered the revenue growth with a 13% increase. Android handset sales performed well as new flagship device launches drove demand for Qualcomm processors.

Net margin for the quarter came in at 26.77%. Return on equity reached 40.35% while the company maintains a debt-to-equity ratio of 0.54.

Automotive and IoT Growth Continue

The automotive segment posted 17% growth during the quarter. Demand for connectivity and infotainment chips in vehicles continues to accelerate as automakers add more technology features.

IoT revenue increased 7.4% as Qualcomm expands beyond smartphones. The company unveiled two new AI accelerators for data center inference with deployment planned for 2026.

Qualcomm provided first quarter fiscal 2026 guidance between $3.30 and $3.50 in earnings per share. Wall Street analysts forecast approximately $9.39 in full-year EPS.

Executive Stock Sales and Dividend

CEO Cristiano Amon sold 150,000 shares on October 1st at $165.56 per share. The $24.8 million transaction cut his holdings by 50.12%, leaving him with 149,304 shares.

CFO Akash Palkhiwala also sold shares in October, unloading 8,335 shares at $166.06 each. His sale represented an 18.57% reduction in position.

The company declared a $0.89 quarterly dividend payable December 18th. The annualized dividend of $3.56 yields 2.1% with a payout ratio of 72.8%.

Multiple analysts raised price targets following the earnings report. Susquehanna set a $210 objective while Mizuho increased its target from $185 to $200 with an outperform rating.

Rosenblatt Securities reiterated its buy rating with a $225 price target. Citigroup lifted its objective from $170 to $175 with a neutral rating.

The consensus rating stands at “Moderate Buy” with an average price target of $190.38. Thirteen analysts rate the stock a buy, nine assign hold ratings, and one has a sell recommendation.

A new patent lawsuit was filed against Qualcomm this week. The company also faces regulatory review of its pending $2.4 billion acquisition of Alphawave Semi.

The stock trades with a market cap of $178.59 billion and a P/E ratio of 16.08. Its 50-day moving average sits at $168.95 while the 200-day average is $159.08.

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