QUALCOMM Incorporated (QCOM)

FairStock Score: 66/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Qualcomm is a toll booth on wireless innovation. Its QCT chip business and QTL licensing arm are tied to smartphones, autos, and connected devices. In fiscal Q3 2026, the quarter ended 2026-06-28, it reported revenue of $9.9B and net income of $2.0B, or diluted EPS of $1.87. Compare that with fiscal Q3 2025, the quarter ended 2025-06-29, when revenue was $10.4B, net income $2.7B, and diluted EPS $2.43. That is a softer quarter, and the supplied FairStock growth figures show revenue growth -4.03% and profit growth -24.91%. Full-year filings give context: FY2025 revenue was $44.3B, net income $5.5B, and diluted EPS $5.01, while FY2024 had revenue of $39.0B but net income of $10.1B and diluted EPS $8.97. So sales can grow while profits fall—classic cyclicality. FairStock categorizes this as CYCLICAL—Semiconductors, because earnings follow the economic cycle. The balance sheet looks sturdy by Altman Z-Score 4.93, and ROE is 33.75%, though ROCE is 11.61% and D/E is 0.55. Free cash flow is $10.4B, a 5.6% FCF yield. At the close on 2026-10-13, the price was $176.86; FairStock's P/E is 20.24, P/B 6.76, EV/EBITDA 14.58, and Graham Number $71.74, leaving a -146.53% margin of safety. Piotroski is only 4/9. I admire the licensing moat and cash generation, but the price already assumes a lot and the earnings record is uneven.

In plain English: Qualcomm makes chips and licenses wireless technology used in phones, cars, and other connected devices. The business still earns good profits and generates a lot of cash, but recent sales and profit have slipped and the company is exposed to the ups and downs of the semiconductor cycle. At the recent price, the shares look expensive compared with the company's reported earnings power and accounting value, even though cash flow is decent.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-28) · fiscal Q2 2026 10-Q (period ended 2026-03-29) · fiscal Q1 2026 10-Q (period ended 2025-12-28) · fiscal Q3 2025 10-Q (period ended 2025-06-29) · FY2025 10-K (period ended 2025-09-28) · FY2024 10-K (period ended 2024-09-29) · FY2023 10-K (period ended 2023-09-24)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer