Why Is Qualcomm (QCOM) Up 0.7% Since Last Earnings Report?

It has been about a month since the last earnings report for Qualcomm (QCOM). Shares have added about 0.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Qualcomm due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Qualcomm Beats Q4 Earnings Estimates on Solid Revenue Growth

Qualcomm reported strong fourth-quarter fiscal 2025 results, with adjusted earnings and revenues exceeding the respective Zacks Consensus Estimate, driven by healthy demand trends in IoT and automotive businesses. Revenues increased year over year, led by the strength of the business model, diversification initiatives and the ability to respond proactively to the evolving market scenario. 

Net Income

On a GAAP basis, net loss in the September quarter was $3.12 billion or a loss of $2.89 per share against a net income of $2.92 billion or $2.59 per share in the prior-year quarter. Despite a healthy revenue growth, the bottom line declined due to a non-cash charge of $5.7 billion due to the requisite changes in the new tax legislation regime. 

Non-GAAP net income for the reported quarter came in at $3.26 billion or $3.00 per share compared with $3.04 billion or $2.69 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 12 cents.

For fiscal 2025, GAAP net income decreased to $5.54 billion or $5.01 per share from $10.14 billion or $8.97 per share in fiscal 2024. Non-GAAP earnings for fiscal 2025 were $13.3 billion or $12.03 per share compared with $11.54 billion or $10.22 per share in fiscal 2024.

Revenues

Total revenues in the fiscal fourth quarter were $11.27 billion, up from $10.24 billion in the year-ago quarter. The top line surpassed the consensus mark of $10.77 billion. Qualcomm registered record automotive revenues owing to solid momentum in the Snapdragon Digital Chassis platform. Strength within the handset and industrial Internet of Things (IoT) businesses also buoyed the top line. For fiscal 2025, non-GAAP revenues increased 13% year over year to $44.14 billion with solid IoT and automotive revenues. 

Segment Results

Quarterly revenues from Qualcomm CDMA Technologies (QCT) were $9.82 billion, up from $8.68 billion a year ago, as strength in the automotive platform, higher demand in handsets and Snapdragon chipset within the IoT business aided the top-line growth. The company witnessed solid market traction in the EDGE networking business that helps transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. 

Automotive revenues rose 17% to a record high of $1.05 billion, driven by increased content in new vehicle launches with its Snapdragon Digital Chassis platform, with automakers deploying high-performance, low-power computing and connectivity chips to bring next-generation experience to consumers. Handset revenues jumped 14% to $6.96 billion, led by healthy traction in premium Android handsets enabled by the Snapdragon Elite Gen 5 platform. IoT revenues were up 7% to $1.81 billion on solid demand for the Snapdragon AR1 chipset for the emerging AI smart glasses category. EBT margin for the QCT segment rose to 29% from 28%.

Qualcomm Technology Licensing (QTL) revenues totaled $1.41 billion, down 7% year over year, with EBT margin declining to 72% from 74%. 

Cash Flow & Liquidity

Qualcomm generated $14.01 billion of net cash from operating activities in fiscal 2025 compared with $12.2 billion a year ago. As of Sept. 28, 2025, the company had $5.52 billion in cash and cash equivalents with $14.81 billion of long-term debt compared with respective tallies of $7.85 billion and $13.27 billion in the prior-year period. The company repurchased 16 million shares during the quarter for $2.44 billion. 

Guidance

For the first quarter of fiscal 2026, Qualcomm expects GAAP revenues of $11.8-$12.6 billion due to solid demand and portfolio strength. Non-GAAP earnings are projected to be $3.30-$3.50 per share, while GAAP earnings are likely to be $2.55-$2.75 per share. Revenues from QTL are expected to be between $1.4 billion and $1.6 billion. For QCT, the company anticipates revenues between $10.3 billion and $10.9 billion, with record handset revenues, relatively flat automotive revenues and a slight decline in IoT revenues sequentially.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

VGM Scores

At this time, Qualcomm has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Qualcomm has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Qualcomm is part of the Zacks Electronics - Semiconductors industry. Over the past month, Cirrus Logic (CRUS), a stock from the same industry, has gained 2.8%. The company reported its results for the quarter ended September 2025 more than a month ago.

Cirrus Logic reported revenues of $560.96 million in the last reported quarter, representing a year-over-year change of +3.5%. EPS of $2.83 for the same period compares with $2.25 a year ago.

Cirrus Logic is expected to post earnings of $2.37 per share for the current quarter, representing a year-over-year change of -5.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Cirrus Logic. Also, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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