Shares of Qualcomm Inc (NASDAQ:QCOM) tanked in early trading on Thursday, after the company reported fiscal fourth-quarter results.
Here are some key analyst takeaways:
- Rosenblatt Securities analyst Sajal Dogra reiterated a Buy rating, but cut the price target from $235 to $205.
- JPMorgan analyst Joseph Cardoso reiterated a Neutral rating and reduced the price target from $215 to $200.
Check out other analyst stock ratings.
Rosenblatt Securities: Qualcomm reported non-GAAP revenue of $10.44 billion, surpassing consensus of $10.12 billion, Dogra said in a note. However, cost pressures led to a sequential gross margin contraction of 160 basis points (bps) to 52.4%, below expectations. Non-GAAP earnings of $2.17 per share came in just one cent ahead of consensus.
Persistent cost pressures and market headwinds in handsets drive Rosenblatt’s earnings estimates for fiscal 2027 and 2028 lower, from $10.42 per share to $9.54 per share and from $14.03 per share to $12.36 per share, respectively, the analyst stated.
Qualcomm guided to Data Center revenue forecast of $5 billion for fiscal 2027 and expects this to reach $15 billion in fiscal 2029, Dogra noted. The outlook is a "customer-derived forecast," with two hyperscalers, including AWS, underpinning most of the revenue target. This gives analysts confidence in Qualcomm’s resilience “to a broader AI CapEx slowdown.”
JPMorgan: The fiscal fourth-quarterresults highlighted Qualcomm’s "transition toward a more diversified semiconductor company," Cardoso said. The company’s data center business ramped and exited fiscal 2026 with an annualized run rate of around $8 billion, versus expectations of about $7 billion, he added.
"That progress comes against some crosswinds, however, including elevated margin pressure and the potential for a more pronounced handset slowdown despite China-Android revenue recovering near-term from the June quarter bottom," the analyst wrote.
Supply, not demand, constrains the company’s upside and fiscal 2027 target of $5 billion for Data Center revenue.
QCOM Price Action: Qualcomm shares had declined 10.16% to $155.60 at the time of publication on Thursday.
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