Qualcomm (QCOM) stock fell out of the gate Thursday even as the integrated circuits specialist beat top- and bottom-line expectations for its fiscal 2025 first quarter and issued a better-than-expected forecast for its fiscal second quarter.
In the three months ending December 29, Qualcomm's revenue increased 17.5% year over year to $11.7 billion. Its earnings per share (EPS) rose 24% from the year-ago period to $3.41.
"We are very pleased to have achieved quarterly revenue records, which reflect the strength of our technology, product roadmap and end-customer demand," said Qualcomm CEO Cristiano Amon in a statement. "We are delivering growth across our diversification initiatives and remain committed to executing on our fiscal 2029 targets to achieve $22 billion of non-handset revenues."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results handily beat analysts' expectations. Wall Street was anticipating revenue of $10.9 billion and earnings of $2.96 per share, according to CNBC.
For the second quarter of this fiscal year, Qualcomm expects to achieve revenue in the range of $10.2 billion to $11 billion and earnings between $2.70 to $2.90 per share. The midpoints of these ranges, revenue of $10.6 billion and earnings of $2.80 per share, came in ahead of the $10.3 billion in revenue and earnings of $2.69 per share that analysts are anticipating.
As for why the tech stock is falling, some media outlets are reporting to disappointing licensing revenue of $1.54 billion, which came in slightly below what Wall Street was expecting.
Where does Qualcomm stand with analysts?
Qualcomm has tracked the performance of the broader market over the past 12 months, up 24.5% on a total return basis (price change plus dividends) vs the S&P 500's 24.3% gain. And Wall Street sees even more upside for the semiconductor stock.
According to S&P Global Market Intelligence, the average analyst target price for QCOM stock is $202.12, representing implied upside of more than 20% to current levels. Additionally, the consensus recommendation is a Buy.
However, not everyone is so upbeat toward the large-cap stock. Financial services firm Oppenheimer, for one, has a Perform rating (equivalent to a Hold) on QCOM.
"While we recognize QCOM's leading position in modem and single-chip integrated chipset solutions, we believe the company is over-exposed to the mobile market, with its diminishing growth and increasing competition," says Oppenheimer analyst Rick Shafer. "We believe both sides of the business face structural issues with no clear solution in sight. The stock should remain under pressure until it is able to diversify toward stickier, more profitable markets."
Related Content
-
Nvidia Earnings: Live Updates and Commentary August 2025Nvidia's earnings event is just days away, and market participants are zeroed in on the AI bellwether's quarterly results.
-
Ten Cheapest Places to Live in TennesseeProperty Tax Moving to Tennessee might be within your reach. Homeowners in these counties pay some of the lowest property tax bills in the state.
-
Nvidia Earnings: Live Updates and Commentary August 2025
Nvidia's earnings event is just days away, and market participants are zeroed in on the AI bellwether's quarterly results.
-
Should You Claim Social Security Early or Late? A Financial Adviser Weighs InThere isn't a wrong age to start claiming Social Security, but there are factors that everyone should consider to avoid leaving money on the table.
-
Three Things Financially Confident People Do, From a Pro Who KnowsIf you have any worries about your retirement future, take back control with these three tips.
-
How Much Do I Need to Retire? A Financial Professional Breaks Down Your OptionsWhat it all boils down to is will you be comfortable in retirement? Some people may rely on formulas, while others just aim for $1 million nest egg.
-
Despite Our Grumbles, America Still Delivers on the Dream: Perspective From a Financial Pro Who's Seen StuffSome of us might complain about the state of our nation (and those concerns are legit), but America still offers unparalleled opportunities and mobility that many people around the world only dream about.
-
Dow Rips 846 Points to New All-Time High: Stock Market TodayFed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.
-
Bonds Pay in Good and Bad TimesBonds can act as a financial safety net through good times and bad. But different bonds carry different returns and risks, so do your homework before investing.
-
When You Need Capital Quickly, Think 'Ready, Set, Fund': A Financial Adviser's StrategyInvestors must be able to free up cash to meet short-term needs from time to time. This strategy will help you access capital without derailing your long-term goals.
