QCOM
QUALCOMM INC/DE
Technology • CIK: 0000804328
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Market Cap
$189.84B
P/E (TTM)
35.0x
Rev Growth (TTM)
+10.3%
Net Margin (TTM)
12.0%
FCF Yield (TTM)
6.8%
FCF Margin (TTM)
28.8%
What Changed
10-Q Q1 FY2026 vs 10-Q Q3 FY2025
Q2 FY2026 Revenue Guidance InitiatedNo forward revenue guidance provided→$10.2B-$11.0B range; memory supply constraints and...
Q2 FY2026 EPS Guidance InitiatedNo EPS guidance provided→$1.69-$1.89 GAAP diluted EPS (vs Q1 FY2026 actuals of...
Hidden Liability Risk Levelmoderate→high — Arm litigation now high-severity; Arm seeking...
Operating Margin YoY30.47% (Q1 FY2025)→27.47% (Q1 FY2026, -300bps YoY) — driven by higher R&D...
Net Margin YoY27.25% (Q1 FY2025)→24.52% (Q1 FY2026, -273bps YoY)
Arm litigation: watch for appeals court ruling on Nuvia ALA breach claim —...·QCT handset revenue Q2 FY2026: guided $10.2B-$11.0B total revenue implies QCT...·Operating margin: Q2 FY2026 guidance implies continued YoY pressure; watch...
Filing Intelligence
5.0/10
10-Q filed Feb 4, 2026 • FYNone
Executive Summary
Revenue and QCT/QTL segments saw modest growth, but net income declined due to increased operating expenses and lower gross margins.. Management anticipates headwinds from memory supply constraints...
Key Concerns
- ●Revenue and QCT/QTL segments saw modest growth, but net income declined due to increased operating expenses and lower gross margins.
- ●Management anticipates headwinds from memory supply constraints and increased competition, including from Apple's in-house modem...
- ●The use of assumptions in determining QCT revenues by industry and application warrants scrutiny.
Cash Flow Health
Free Cash Flow8/8 positive
TTM$12.9B
Q1 '26
$4.4B+23%
Q4 '26
$3.6B+39%
FCF Margin
TTM28.8%
Q1 '2636.0%+13%
Sector: 9.1%Top 25%
OCF Margin32.1%
OCF/NI2.68x
CapEx Coverage9.8x
FCF Yield6.8%
FCF Growth (2Y)+17%
Cash Conversion Cycle
97 days
DSO: 28+DIO: 116−DPO: 46
Capital Allocation & Returns
Shareholder Friendly
Total Shareholder YieldTTM
TTM7.1%
Div Yield2.0%
+Buyback (TTM)5.1%
Strong capital returns to shareholders
Dividend & Payout Metrics
Dividend Yield (TTM)2.0%
FCF Payout Ratio29.6%
Free Cash Flow (TTM)$12.9B
Stock Repurchases (TTM)$9.7B
Capital Return / FCF104.5%
Est. Dividends Paid (TTM)$3.8B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
15.3%
Volatile
-0.5% YoY-24.8%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
11.6%
8Q: 23.7%
Asset Turnover
0.84x
8Q: 0.78x
Leverage (1+D/E)
–
Asset & CapEx Efficiency
Fixed Asset Turn
9.82x
8Q:9.56x
+232.3%
Invested Cap Turn
1.32x
8Q:1.31x
+13.9%
CapEx Intensity
4.3%
8Q:3.5%
CapEx/Depreciation
0.94x
Depreciation Rate Trend
⚠ Declining -5.2%
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q1 2026 | Q4 2026 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $44.9B | $12.3B↑8.7% | $11.3B↑8.7% | $10.4B↓5.6% | $11.0B↓5.9% | $11.7B↑13.9% | $10.2B↑9.1% | $9.4B↑0.0% | $9.4B |
Operating Income | $12.2B | $3.4B↑15.4% | $2.9B↑5.6% | $2.8B↓11.5% | $3.1B↓12.2% | $3.6B↑37.7% | $2.6B↑16.3% | $2.2B↓5.1% | $2.3B |
Net Income | $5.4B | $3.0B↑196.4% | $-3.1B↓216.9% | $2.7B↓5.2% | $2.8B↓11.6% | $3.2B↑8.9% | $2.9B↑37.2% | $2.1B↓8.5% | $2.3B |
Operating Cash Flow | $14.4B | $5.0B↑24.2% | $4.0B↑39.0% | $2.9B↑12.6% | $2.6B↓44.3% | $4.6B↑73.3% | $2.6B↓13.3% | $3.1B↓14.1% | $3.6B |
Free Cash Flow | $12.9B | $4.4B↑23.0% | $3.6B↑39.1% | $2.6B↑10.3% | $2.3B↓45.7% | $4.3B↑80.3% | $2.4B↓10.3% | $2.7B↓20.9% | $3.4B |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
35.0x
Volatile
8Q: 63.6x-8254%
High PEG ratio (3.4x) suggests expensive for growth
Valuation Lenses
Earnings
35.0x
vs – sector
Cash Flow
14.0x
EV/FCF vs –
Growth-Adj
3.4xPEG
Expensive for growth
Quality-Adj
2.3P/E per %ROIC
ROIC: 15.3%
Shareholder Returns
Dividend
2.0%
Buyback
5.1%
Total Yield
7.1%
Market Cap$189.84B
EV$181.13B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
61/100
High Quality
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)
–
8Q:–
Return on Invested Capital (ROIC)Top 25%
15.3%
8Q:–
-24.8%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 11.6%
Asset Turnover: 0.84x
Earnings Quality
Cash Conversion
2.68x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin55.1%
Capital Efficiency
Invested Capital Turnover1.32x
Working Capital
Cash Conversion Cycle97 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
69/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
10.3%
OpInc Growth YoY
-5.3%
EPS Growth YoY
-47.1%
FCF 3Y CAGR
17.1%
Growth Quality Analysis
✓Efficient Growth: Free cash flow growing faster than revenue
✓Sustainability Index: 7.5/10 - Highly sustainable growth
Margin Quality & Sustainability
Low Quality
Profitability Cascade
Gross
55.1%
Operating
27.1%
Top 25% in sector
Net
12.0%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+16.9 pts
FCF: 28.8% | Net: 12.0%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $11.82B
Interest Coverage
–
+Net cash position: $11.82B
Balance sheet risk & solvency analysis