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Key Takeaways
Qualcomm surged 11.12% on Friday, closing the trading week at $148.85
The company's Q2 earnings are due April 29 after the market close; revenue is guided at the range of $10.2-$11 billion
Global semiconductor sales hit $88.8 billion in February, up 61.8% year-over-year
The company's board approved a $20 billion share buyback, while the quarterly dividend was raised to $0.92
Analyst consensus is a Hold rating, with a $158.25 average price target
Qualcomm stock jumped 11.12% on Friday, closing the week's trading at $148.85. The move came as investors positioned ahead of the company’s Q2 fiscal 2026 earnings report, due after the market close on April 29.
The rally put Qualcomm back in focus after a rough start to 2026. The stock is still down around 13% year-to-date, with a one-year high of $205.95 and a one-year low of $121.99.
For Q2, Qualcomm is guiding revenue of $10.2 to $11 billion. That’s roughly flat to down 7% compared to $10.98 billion in the same period last year. GAAP diluted EPS is projected at $1.69 to $1.89, down from $2.52 a year ago.
Options activity on Friday was notable. Around 120,444 call contracts were purchased — about 165% above the daily average — signaling strong bullish positioning heading into earnings week.
Semiconductor Sector Tailwind
Part of Friday’s lift came from broader chip sector strength. According to the Semiconductor Industry Association, global chip sales hit $88.8 billion in February, up 61.8% from $54.9 billion a year earlier and up 7.6% from January 2026.
SIA President John Neuffer said sales into Asia-Pacific, the Americas, and China were all key drivers. He added that annual global sales are projected to hit roughly $1 trillion this year.
Qualcomm’s “AI at the edge” positioning has drawn renewed investor interest. The company has been highlighted as a potential beneficiary of AI-driven demand outside the traditional smartphone market.
That said, various headwinds remain. Analysts have flagged weak smartphone demand, rising memory costs, and limited near-term catalysts for the handset business. Morgan Stanley has maintained an underweight rating with a price target of $132. Sanford C. Bernstein has placed the stock at a market perform rating with a price target of $140.
On the bullish side, Piper Sandler has kept an overweight rating with a $200 target, while Rosenblatt has maintained a buy with a revised $190 target.
Buyback and Dividend
In March, Qualcomm’s board authorized a $20 billion share buyback — covering up to 14.5% of outstanding stock. The company also raised its quarterly dividend from $0.89 to $0.92, payable June 25 to holders of record on June 4. That puts the annualized dividend at $3.68, a 2.5% yield.
In Q1, Qualcomm posted EPS of $3.50, beating the $3.38 consensus estimate. Revenue came in at $12.25 billion, edging past the $12.16 billion estimate. Return on equity stood at 44.09%.
Institutional ownership sits at 74.35%. Concurrent Investment Advisors increased its stake by 66.2% in Q4, buying 35,166 additional shares to hold 88,257 total.
On the insider side, two EVPs sold a combined 6,533 shares in early February at prices between $137 and $137.65. Total insider sales over the past three months came to 9,118 shares worth roughly $1.23 billion.
The consensus analyst rating remains a Hold, with an average price target of $158.25. Q2 EPS guidance has been set at the range of $2.45-$2.65.
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