Qualcomm (NASDAQ: QCOM) shares have climbed approximately 35.5% in the month since the company’s last earnings report, outpacing the S&P 500 over the same period.
The strong share price performance follows a second-quarter fiscal 2026 earnings report that delivered a mixed but broadly resilient set of results across Qualcomm’s key business segments.
Qualcomm reported non-GAAP earnings of $2.65 per share for the second quarter, a 7% year-over-year decline that nonetheless beat the Zacks Consensus Estimate of $2.57 by 3.11%.
Non-GAAP revenues came in at $10.60 billion, falling 2% year over year and missing the consensus estimate of $10.64 billion by 0.2%.
The headline numbers masked a meaningful divergence in performance across segments, with record automotive sales and IoT momentum helping offset pressure in the handset business.
Qualcomm CDMA Technologies handset revenues were $6.02 billion, declining 13% from the year-ago quarter as OEMs, particularly in China, remained cautious on builds amid memory supply and pricing dynamics.
QCT automotive revenues rose 38% year over year to a record $1.33 billion, while QCT IoT revenues increased 9% to $1.73 billion, reflecting growth across consumer and industrial products.
The QCT segment as a whole posted revenues of $9.08 billion, down 4% year over year, with the EBT margin contracting to 27% from 30% a year earlier due to weaker handset mix.
Qualcomm Technology Licensing revenues totaled $1.38 billion, up 5% year over year, with the QTL EBT margin expanding to 72% from 70%, indicating solid profitability in the licensing business.
Management highlighted that Qualcomm exceeded $5 billion in annualized automotive revenues for the first time and expects to exit fiscal 2026 at a run rate above $6 billion, driven by the Snapdragon Digital Chassis roadmap.
The company noted that more than 1 million cars are operating ADAS and autonomy on Snapdragon Ride processors, with commercial shipments of its next-generation digital chassis platform expected to begin by the end of the fiscal year.
During the quarter, Qualcomm returned $3.7 billion to stockholders, including $2.8 billion in share repurchases and $945 million in dividends, reflecting an acceleration in capital return activity.
The company also announced a higher quarterly dividend rate and a new $20 billion stock repurchase authorization, reinforcing management’s commitment to returning cash to shareholders.
For the third quarter of fiscal 2026, Qualcomm guided revenues to $9.2 billion to $10.0 billion and non-GAAP earnings to $2.10 to $2.30, reflecting expected softness tied to memory-driven OEM behavior.
Management indicated that QCT handset revenues from China-based customers are expected to bottom in the third quarter and return to sequential growth in the following quarter as the inventory drawdown cycle eases.
Despite the share price rally, the consensus estimate has shifted -12.23% over the past month, reflecting a broad downward trend in analyst revisions since the earnings release.
Qualcomm currently holds a Growth Score of C and a Momentum Score of F, with a Value grade of D placing it in the bottom 40% for value investors, resulting in an aggregate VGM Score of D.
The stock carries a Zacks Rank of 4, designated as Sell, with analysts projecting a below-average return from the stock over the next few months.
By comparison, fellow semiconductor industry participant Lam Research (NASDAQ: LRCX) has gained 23.3% over the past month and carries a Zacks Rank of 2, designated as Buy, with a more favorable estimate revision trajectory.
Lam Research reported revenues of $5.84 billion for the quarter ended March 2026, representing a year-over-year increase of 23.8%, with earnings per share of $1.47 compared to $1.04 in the prior-year period.
