TLDR
- Qualcomm reports Q2 FY2026 earnings on Wednesday, April 29, after market close
- Options traders are pricing in an 8.71% move in either direction
- Wall Street expects EPS of $2.56 (down 10.2% YoY) and revenue of $10.59 billion (down ~3.6%)
- Barclays has a Sell rating ($130 target); JPMorgan downgraded to Hold ($140 target)
- QCOM is up 18% over the past month but still down 12% year-to-date
Qualcomm reports its fiscal second-quarter results on Wednesday, April 29, after the bell. The market is watching closely, and options traders are bracing for a move.
QCOM stock has climbed 18% over the past month but remains down 12% year-to-date. Heading into earnings, the stock sits near $150.83, right around the average analyst price target of $150.10.
Wall Street is projecting EPS of $2.56, which would be a 10.2% drop year-over-year. Revenue is expected to come in at $10.59 billion, down roughly 3.6%.
Earlier this week, QCOM jumped more than 13% in premarket trading after a tech analyst reported checks suggesting the company is working with OpenAI on smartphone processors. The stock pulled back sharply and closed up just 0.95% — no official confirmation ever came.
Analyst Downgrades Weigh on Sentiment
Barclays analyst Thomas O’Malley reinstated coverage last week with a Sell rating and a $130 price target. He flagged Qualcomm’s heavy exposure to memory shortages and elevated pricing, which he expects to drive a double-digit decline in handset volumes in 2026.
O’Malley acknowledged the auto segment growth story but said it isn’t enough to offset a weaker global unit environment. He thinks QCOM needs to lay out a clearer data center plan — something he’s expecting at the analyst day in June.
JPMorgan’s Samik Chatterjee downgraded QCOM from Buy to Hold and cut his price target from $185 to $140. His concern: slow diversification away from smartphones and no clear near-term catalysts.
Chatterjee said rising competition from Arm Holdings and Nvidia makes it critical for Qualcomm to prove execution in data center CPUs and AI chips. He also sees pressure in IoT and automotive due to broader macro conditions.
What to Watch Beyond the Numbers
Investors will be listening closely to management’s comments on memory shortage impacts, the demand environment, and any update on recent partnership deals.
The smartphone weakness is a key overhang. Analysts expect a double-digit decline in handsets in 2026, and Chatterjee noted that risk isn’t fully priced into current estimates.
Peers Offer a Partial Roadmap
Intel and Penguin Solutions have already reported. Intel beat estimates by 9.6% with 7.2% revenue growth and traded up 23.6%. Penguin Solutions topped estimates and rose 13.4%.
Semiconductor stocks overall are up 46.9% on average over the past month — a rising tide that has lifted QCOM as well.
The current Wall Street consensus is Hold — 17 Holds, 8 Buys, and 4 Sells — with an average price target of $152.28, implying just 1.4% upside from current levels.
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