Highlights

• Qualcomm shares fell 9.68% in after-hours trading following the earnings release.
• Wells Fargo and Cantor Fitzgerald set price targets at USD 135, citing limited near-term upside.
• The company reported record quarterly revenue of USD 12.3 billion for Q1 FY2026.

Qualcomm Inc. (NASDAQ:QCOM) shares declined sharply in after-hours trading on February 4 after the company reported its fiscal first-quarter 2026 results. Despite posting record revenues - the stock fell 9.68%, brokerages issued cautious ratings and investors focused on forward guidance.

Qualcomm Stock Reaction After Earnings

Following the earnings announcement, Qualcomm shares dropped nearly 10% in after-hours trading. The stock last traded at USD 134.48, reflecting investor reaction to broker commentary and concerns surrounding near-term demand conditions. The decline came even as the company reported higher revenues compared with the same quarter last year.

Broker Ratings Add Pressure

Broker reactions played a notable role in the post-earnings move. Wells Fargo Securities, LLC maintained an underweight rating on Qualcomm with a target price of USD 135. Cantor Fitzgerald also reiterated a neutral rating, assigning the same USD 135 price target.

Record Revenue Quarter Reported

Qualcomm reported record quarterly revenue of USD 12.3 billion for the first quarter of fiscal 2026, up 5% year-over-year. GAAP earnings per share came in at USD 2.78, while non-GAAP EPS was reported at USD 3.50.

The company’s QCT segment generated USD 10.6 billion in revenue, supported by growth across handsets, automotive, and IoT categories. Automotive revenue reached USD 1.1 billion, marking the second consecutive quarter above the USD 1 billion level.

Segment Performance and Capital Returns

Handset revenue rose 3% year-over-year to USD 7.8 billion, while IoT revenue increased 9% to USD 1.69 billion. Licensing revenue from the QTL segment reached USD 1.59 billion.

During the quarter, Qualcomm returned USD 3.6 billion to shareholders, including USD 949 million in dividends and USD 2.6 billion through share repurchases.

Outlook Draws Investor Attention

For the second quarter of fiscal 2026, Qualcomm guided revenue in the range of USD 10.2 billion to USD 11.0 billion, with non-GAAP EPS projected between USD 2.45 and USD 2.65. The outlook includes the impact of memory supply constraints affecting demand from several handset customers, which remained a focal point for market participants.

Technical Chart and Data

Qualcomm Incorporated shares remain under short-term pressure, with prices trading below both the 21-day and 50-day Simple Moving Averages, pointing to a softer near-term structure. Recent pullbacks have followed repeated difficulty in sustaining higher levels, while momentum remains subdued, with the 14-day RSI hovering near 30.12. Volumes have moderated, indicating reduced participation. Immediate support is seen near USD 132.00, followed by USD 121.00, while resistance is located around USD 163.00 and USD 185.00.

Qualcomm’s post-earnings stock decline reflected broker caution and investor focus on forward guidance rather than headline revenue figures. While the company delivered record quarterly sales and continued growth across multiple segments, market sentiment remained sensitive to demand outlook and industry supply constraints.

FAQ Section

Q1: Why did Qualcomm shares fall in after hour-trading?
The decline followed cautious broker ratings and investor focus on guidance, particularly concerns related to handset demand and memory supply constraints.

Q2: What ratings did brokers assign to Qualcomm after earnings?
Wells Fargo Securities issued an underweight rating, while Cantor Fitzgerald maintained a neutral rating, both with target prices of USD 135.

Q3: What is Qualcomm’s revenue outlook for Q2 FY2026?
Qualcomm expects revenue between USD 10.2 billion and USD 11.0 billion, with non-GAAP EPS projected at USD 2.45 to USD 2.65.

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