Qualcomm (QCOM) Stock Drops as CEO Sells $25 Million in Shares After Earnings

TLDR

• Qualcomm stock dropped 4.2% to $166.75 on Monday despite beating earnings expectations with $3.00 EPS versus $2.87 estimate and revenue of $11.27 billion, up 10% year-over-year.
• The company provided Q1 FY2026 guidance of $3.30-$3.50 EPS while analysts forecast approximately $9.39 EPS for the full year, with the stock trading well below the consensus price target of $190.38.
• CEO Cristiano Amon sold 150,000 shares worth approximately $24.8 million in October, representing a 50.12% decrease in his position.
• Qualcomm announced a quarterly dividend of $0.89 per share, representing an annualized yield of 2.1% and a dividend payout ratio of 72.8%.
• Multiple analysts upgraded their price targets, with Susquehanna setting $210, Mizuho raising to $200, and Rosenblatt Securities maintaining $225, while the company faces a new patent lawsuit and regulatory scrutiny over its $2.4 billion Alphawave Semi acquisition.

Qualcomm stock fell 4.2% on Monday, closing at $166.75 in a session that saw trading volume jump 16% above average. The decline came despite the company delivering fourth quarter results that exceeded Wall Street expectations.

QUALCOMM Incorporated, QCOM

The chipmaker reported earnings per share of $3.00, beating the consensus estimate of $2.87. Revenue hit $11.27 billion, up 10% from the previous year and ahead of analyst projections of $10.74 billion.

The company’s QCT chip segment drove much of the growth, increasing 13% year-over-year. The Android handset division performed particularly well, benefiting from new product launches and strong demand for flagship models.

Qualcomm’s automotive business grew 17% during the quarter. The IoT division added 7.4% growth as connectivity and infotainment chips gain traction in vehicles and other devices.

Net margin came in at 26.77% while return on equity reached 40.35%. The company maintains a debt-to-equity ratio of 0.54, with a current ratio of 3.19.

Insider Sales and Dividend News

CEO Cristiano Amon sold 150,000 shares on October 1st at an average price of $165.56. The transaction totaled $24.8 million and reduced his holdings by 50.12%, leaving him with 149,304 shares.

CFO Akash Palkhiwala sold 8,335 shares on October 20th at $166.06 per share. This sale represented an 18.57% decrease in his position.

The company declared a quarterly dividend of $0.89 per share, payable December 18th to shareholders of record on December 4th. This represents an annualized dividend of $3.56 and a yield of 2.1%.

The dividend payout ratio stands at 72.8%. The ex-dividend date is set for December 4th.

Analyst Ratings and Price Targets

Several firms raised their price targets on Qualcomm following the earnings report. Susquehanna set a price objective of $210 in early November.

Mizuho increased its target from $185 to $200 with an outperform rating. Rosenblatt Securities maintained its buy rating with a $225 price target.

Citigroup lifted its price objective from $170 to $175, assigning a neutral rating. Wall Street Zen upgraded the stock from hold to buy on Saturday.

The consensus rating sits at “Moderate Buy” with an average price target of $190.38. The stock currently trades about 12% below that target level.

Thirteen analysts have buy ratings on the stock, nine rate it a hold, and one has assigned a sell rating. One analyst gave it a strong buy recommendation.

Guidance and Legal Challenges

Qualcomm provided first quarter fiscal 2026 guidance of $3.30 to $3.50 in earnings per share. Analysts project full-year EPS of approximately $9.39.

The company unveiled two new AI accelerators for data center inference during the quarter. First deployments are scheduled for 2026 as Qualcomm expands beyond mobile into enterprise computing.

A new patent lawsuit was filed against the company this week. The company also faces regulatory scrutiny over its pending $2.4 billion acquisition of UK-based Alphawave Semi.

Trading volume reached 10,193,933 shares on Monday. The stock has a 50-day moving average of $168.95 and a 200-day moving average of $159.08.

The company carries a market capitalization of $178.59 billion. It trades at a P/E ratio of 16.08 and has a PEG ratio of 2.59.

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