Qualcomm (QCOM) Shares Jump 11% Ahead of Q2 Earnings on Wednesday

TLDR

• QCOM surged 11.12% on Friday, closing at $148.85
• Q2 earnings due April 29 after market close; revenue guidance of $10.2B–$11B
• Global semiconductor sales hit $88.8B in February, up 61.8% year-over-year
• Board approved a $20B share buyback; quarterly dividend raised to $0.92
• Analyst consensus is Hold with a $158.25 average price target

(SeaPRwire) –   Qualcomm (QCOM) experienced a significant increase of 11.12% on Friday, concluding the trading day at $148.85. This surge occurred as investors prepared for the company’s second-quarter fiscal 2026 earnings report, which is scheduled for release after the market closes on April 29.

QUALCOMM Incorporated, QCOM

The recent rally has brought QCOM back into the spotlight following a challenging start to 2026. The stock remains down approximately 13% year-to-date, with its 1-year high at $205.95 and its 1-year low at $121.99.

For the second quarter, Qualcomm has provided revenue guidance ranging from $10.2 billion to $11 billion. This forecast represents a slight decrease or is roughly flat compared to the $10.98 billion reported in the same period last year. The company projects GAAP diluted earnings per share (EPS) to be between $1.69 and $1.89, a decrease from the $2.52 reported a year ago.

Options activity on Friday was noteworthy. Approximately 120,444 call contracts were acquired, which is about 165% above the daily average, indicating strong bullish sentiment heading into earnings week.

Semiconductor Sector Tailwind

A portion of Friday’s stock increase was attributed to the broader strength in the chip sector. According to the Semiconductor Industry Association (SIA), global chip sales reached $88.8 billion in February, marking a 61.8% increase from $54.9 billion a year prior and a 7.6% rise from January 2026.

SIA President John Neuffer highlighted that sales to Asia-Pacific, the Americas, and China were significant contributors to this growth. He also projected that global annual sales are expected to approach $1 trillion this year.

Qualcomm’s strategic focus on “AI at the edge” has reignited investor interest. The company has been identified as a potential beneficiary of AI-driven demand beyond the traditional smartphone market.

However, challenges persist. Analysts have pointed to weak smartphone demand, increasing memory costs, and limited near-term catalysts for the handset business. Morgan Stanley maintains an underweight rating with a price target of $132, while Sanford C. Bernstein holds a market perform rating with a $140 target.

On the optimistic side, Piper Sandler has an overweight rating and a $200 price target, and Rosenblatt has reiterated its buy rating with a revised target of $190.

Buyback and Dividend

In March, Qualcomm’s board of directors authorized a $20 billion share repurchase program, which covers up to 14.5% of the company’s outstanding stock. Additionally, the company increased its quarterly dividend from $0.89 to $0.92 per share, payable on June 25 to shareholders of record on June 4. This brings the annualized dividend to $3.68, representing a 2.5% yield.

In the first quarter, Qualcomm reported an EPS of $3.50, surpassing the consensus estimate of $3.38. Revenue was $12.25 billion, slightly exceeding the $12.16 billion estimate. The company’s return on equity stood at 44.09%.

Institutional ownership is at 74.35%. Concurrent Investment Advisors notably increased its stake by 66.2% in the fourth quarter, acquiring an additional 35,166 shares to hold a total of 88,257 shares.

Regarding insider transactions, two Executive Vice Presidents sold a combined 6,533 shares in early February at prices ranging from $137 to $137.65. Total insider sales over the past three months amounted to 9,118 shares, valued at approximately $1.23 million.

The consensus analyst rating for Qualcomm remains Hold, with an average price target of $158.25. The company’s guidance for Q2 EPS is set between $2.45 and $2.65.