Earnings Preview: What to Expect From QUALCOMM's Report

QUALCOMM Incorporated (QCOM), valued at a market cap of $178.3 billion,  is a leading semiconductor company in the wireless technology industry. It develops advanced mobile, automotive, and AI-focused chip designs and licenses key patents for 3G, 4G, and 5G technologies. The San Diego, California-based company is expected to announce its fiscal Q1 earnings results after the market closes on Wednesday, Jan. 29.

Ahead of the event, analysts expect the chipmaker to report a profit of $2.40 per share, up 3% from $2.33 per share in the year-ago quarter. The company has consistently outperformed Wall Street's earnings expectations over the past four quarters, including a 12.4% beat on consensus EPS estimates in the most recent quarter.

For fiscal 2025, analysts expect QCOM to report an EPS of $9.09, up nearly 7.5% from $8.46 in fiscal 2024. 

Over the past 52 weeks, QCOM has surged 17.4%, trailing both the S&P 500 Index's ($SPX) 25.8% rise and the Technology Select Sector SPDR Fund's (XLK) 27.1% increase over the same period.

Qualcomm shares gained over 2% on Jan. 3, joining a broader rally among chipmakers that lifted the overall market.

However, on Nov. 20, QCOM shares dropped 6.2% after the company announced plans to diversify beyond the smartphone market by 2030 during its IoT and Automotive Diversification Investor Day. The stock's decline reflected market concerns about short-term revenue impacts, particularly as Apple may stop using Qualcomm chips by 2027. 

Analysts' consensus view on QCOM stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 32 analysts covering the stock, 16 recommend a "Strong Buy," one suggests a "Moderate Buy," 14 give a "Hold" rating, and one assigns a "Strong Sell" rating. 

The average analyst price target for QCOM is $204.69, suggesting a potential upside of 27.5% from the current levels.