Fundamental analysis · SEC EDGAR · TTM through 28/06/2026

Fundamental analysis of Qualcomm Inc

QCOM · Nasdaq · Technology

Fundamental quality

ATTRACTIVE

87

out of 100

Qualcomm Inc fits the profile of a quality compounder: it pairs high return on capital (ROE 33.5%) with wide margins (net margin 21%) and a business that keeps growing (11.5% a year). On fundamental quality it scores 87 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +11.5%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Qualcomm designs the chips that power smartphones (processors and modems to connect to networks). It also collects royalties on its wireless patents: much of the world's smartphones pay it a license, a very profitable business.

What will shape its future

  • The smartphone market cycle, which is mature and growing slowly.
  • Its patent-licensing business, highly profitable but exposed to legal disputes.
  • Its diversification into connected cars and the internet of things to reduce reliance on phones.

Breakdown by area

I.Growth
66

EPS growth: 12.2% · Revenue growth: 11.5%

II.Profitability
91

Net margin: 21% · ROE: 33.5% · ROIC: 22.2%

III.Financial health
92

Net debt/EBITDA: 0.87x · FCF: 23.6%

Source: SEC EDGAR · TTM through 28/06/2026

The score includes +4 for dividend strength: 18 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 64%
ROEbeats 74%
Growthbeats 41%
Cash generationbeats 56%
Less debtbeats 46%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Qualcomm Inc strengths

  • Excellent free-cash-flow generation (FCF margin of 23.6%): profit turns into real cash.
  • Outstanding return on equity (ROE of 33.5%): it puts shareholder capital to good use.
  • High net margin (21%): the business is clearly profitable.
  • Revenue growing (11.5% annualized).

Qualcomm Inc risks and weaknesses

  • Shrinking margins: net margin has fallen from 22% to 13% in recent years.

Qualcomm Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
202023,5315,1984,4078,519
202133,5669,0438,6488,129
202244,20012,9366,83412,210
202335,8207,2329,8496,948
202438,96210,14211,1616,785
202544,2845,54112,8209,291

Between 2020 and 2025, revenue went from $23,531M to $44,284M (+88%) and net income went from $5,198M to $5,541M (+7%). Meanwhile, its margins have narrowed (from 22% to 13%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the nine months ended June 28, 2026, versus the nine months ended June 29, 2025 (SEC filings):

  • Revenue-0.7%
  • Net income+43%

What changed with the June 28, 2026 results

Compared with the previous close (March 29, 2026), this is what moved in its accounts:

  • Quality score8987
  • Net margin22.3%21%
  • ROE36.4%33.5%
  • FCF margin28.1%23.6%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$3.48

per share, yearly

30% of earnings

Payout

at least 18 straight years raising it

Growth

That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Qualcomm Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Qualcomm Inc a good company to invest in?

In terms of business quality, Qualcomm Inc scores 87 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Qualcomm Inc a profitable company?

Very. Qualcomm Inc shows a net margin of 21% and an ROE of 33.5%, typical of a highly profitable business.

Does Qualcomm Inc have a lot of debt?

Not particularly. Its net debt is 0.87 times its EBITDA, a low level.

Is Qualcomm Inc growing?

Its revenue has grown 11.5% annualized in recent years and its earnings per share 12.2%.

Does Qualcomm Inc generate cash?

Yes. It converts about 23.6% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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