A month has gone by since the last earnings report for Qualcomm (QCOM Quick QuoteQCOM - Free Report) . Shares have added about 0.5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Qualcomm due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for QUALCOMM Incorporated before we dive into how investors and analysts have reacted as of late.

Qualcomm Surpasses Q1 Earnings Estimates on Record Revenues

Qualcomm reported strong first-quarter fiscal 2026 results, with record revenues driven by healthy demand trends in IoT and automotive businesses. Adjusted earnings exceeded the Zacks Consensus Estimate, led by the strength of its business model, diversification initiatives and its ability to respond proactively to the evolving market scenario. However, revenues missed the consensus estimate despite increasing year over year. 

Net Income

On a GAAP basis, net income in the December quarter was $3 billion or $2.78 per share compared with $3.18 billion or $2.83 per share in the prior-year quarter. Despite healthy revenue growth, the bottom line declined primarily due to higher operating costs. 

Non-GAAP net income for the reported quarter came in at $3.78 billion or $3.50 per share compared with $3.83 billion or $3.41 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 11 cents.

Revenues

Total revenues in the fiscal first quarter were $12.25 billion, up from $11.67 billion in the year-ago quarter. The top line, however, missed the consensus mark of $12.28 billion. Qualcomm registered record automotive and handset revenues owing to solid momentum in the Snapdragon Digital Chassis platform and launches of flagship smartphones. Strength within the industrial Internet of Things (IoT) businesses also buoyed the top line.  

Segment Results

Quarterly revenues from Qualcomm CDMA Technologies (QCT) were $10.61 billion, up from $10.08 billion a year ago, as strength in the automotive platform, higher demand in handsets and Snapdragon chipset within the IoT business aided top-line growth. The company witnessed solid market traction in the EDGE networking business that helps transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. 

Automotive revenues rose 15% to a record high of $1.1 billion, driven by increased content in new vehicle launches with its Snapdragon Digital Chassis platform, with automakers deploying high-performance, low-power computing and connectivity chips to bring next-generation experience to consumers. Handset revenues jumped 3% to $7.82 billion, led by healthy traction in premium Android handsets enabled by broad OEM adoption for dual flagship products and transition toward AI-native smartphones. IoT revenues were up 9% to $1.69 billion on solid demand across consumer and networking products. EBT margin for the QCT segment declined marginally to 31% from 32%.

Qualcomm Technology Licensing (QTL) revenues totaled $1.59 billion, up 4% year over year, with EBT margin increasing to 77% from 75%. 

Cash Flow & Liquidity

Qualcomm generated $4.96 billion of net cash from operating activities in the reported quarter compared with $4.59 billion a year ago. As of Dec. 28, 2025, the company had $7.2 billion in cash and cash equivalents with $14.82 billion of long-term debt. The company repurchased 15 million shares during the quarter for $2.6 billion. 

Guidance

For the second quarter of fiscal 2026, Qualcomm expects GAAP revenues of $10.2-$11 billion due to reduced chip orders and near-term uncertainty in memory supply and pricing for handset OEMs. Non-GAAP earnings are projected to be $2.45-$2.65 per share, while GAAP earnings are likely to be $1.69-$1.89 per share. Revenues from QTL are expected to be between $1.2 billion and $1.4 billion. For QCT, the company anticipates revenues between $8.8 billion and $9.4 billion, with constrained handset revenues of about $6 billion, solid automotive revenues (up nearly 35% year over year) and healthy IoT revenues (up low teens percentage).

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -18.99% due to these changes.

VGM Scores

At this time, Qualcomm has a strong Growth Score of A, a score with the same score on the momentum front. However, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Qualcomm has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Qualcomm is part of the Zacks Electronics - Semiconductors industry. Over the past month, Lam Research (LRCX Quick QuoteLRCX - Free Report) , a stock from the same industry, has gained 0.6%. The company reported its results for the quarter ended December 2025 more than a month ago.

Lam Research reported revenues of $5.34 billion in the last reported quarter, representing a year-over-year change of +22.1%. EPS of $1.27 for the same period compares with $0.91 a year ago.

Lam Research is expected to post earnings of $1.33 per share for the current quarter, representing a year-over-year change of +27.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Lam Research. Also, the stock has a VGM Score of F.