--- title: "Qualcomm stock fell 11.12% days before Nov. 4 earnings" canonical_url: https://www.stockexpertai.com/journal/2026-11-01/qualcomm-s-qcom-stock-fell-11-12-before-earnings-as-margins-narrowed-c1060a0922a0 last_updated: 2026-11-01T04:44:00.631Z section: "AI Signals" author: "Stock Expert AI Research" publisher: Stock Expert AI tickers: QCOM content_type: journal-article --- # Qualcomm stock fell 11.12% days before Nov. 4 earnings _Shares of the chipmaker were at 164.79 USD ahead of its Nov. 4 report, with operating margin lower for two straight quarters._ ![Data cover: Qualcomm stock fell 11.12% days before Nov. 4 earnings](/public-objects/streetnews/2026-11-01/AI_SIGNALS-cover-8d4adc0e.jpg) Stock Expert AI data cover: figures from Financial Modeling Prep; background is an illustrative public-domain photo, credited on the image. Qualcomm (QCOM) shares showed a change of -11.12% on the latest quote, as of Oct. 30, 2026, to 164.79 USD, days before the company reports fiscal fourth-quarter results on Nov. 4. The setup matters because profit margins have narrowed for several quarters while the stock now trades near the low end of analysts' price-target range. Figures below are current as of Oct. 30, 2026 and cover mainly the quarter ended June 28, 2026, the latest reported. ## Key facts - **Oct. 30, 2026:** QCOM was at 164.79 USD, a change of -11.12% on the latest quote. The 52-week range is 121.99-259.92 USD, and market cap is $175.97B. - **Nov. 4, 2026:** Next earnings report. Analysts expect EPS of 2.17 and revenue of $10.14B. - **July 29, 2026:** Qualcomm reported EPS of 2.21 against an estimate of 2.23 (a miss of $0.02) and revenue of $9.95B against an estimate of $9.69B (a beat of $252.1M). - **Quarter ended June 28, 2026:** Operating margin was 16.3%, down from 26.6% a year earlier. - **Quarter ended June 28, 2026:** Free cash flow was $495.0M, versus $2.58B in the year-ago quarter. - **Oct. 31, 2026:** FMP's discounted cash flow model estimated 131.83 USD per share. This is a model estimate, not a price forecast. | Metric | Quarter ended June 28, 2026 | Quarter ended June 29, 2025 | |---|---|---| | Revenue | $9.95B | $10.37B | | Operating income | $1.63B | $2.76B | | Net income | $2.00B | $2.67B | | Diluted EPS | 1.87 | 2.43 | | QCT (chips) revenue | $8.50B | $8.99B | | QTL (licensing) revenue | $1.28B | $1.32B | Revenue fell 4.0% from a year earlier, and net income fell 24.9%. ## What happened The stock's drop came in the final trading days before earnings. We do not have a company release or call transcript for this piece, so we cannot point to a Qualcomm announcement as the cause. Headlines from Oct. 30 described a broad slide in chip stocks that included Arm and Marvell. An Oct. 31 Seeking Alpha preview, published after the drop, argued that Qualcomm's AI target does not justify the recent share price. Those are third-party views, not company statements. The last report, on July 29, 2026, was mixed. Revenue for the third quarter of fiscal 2026 beat the analyst estimate. Reported EPS of 2.21 came in slightly below the estimate of 2.23. Diluted EPS was 1.87, down from 2.43 a year earlier. Both business lines were lower than a year earlier. QCT, which sells chips, brought in $8.50B, and QTL, which licenses Qualcomm's patents, brought in $1.28B. ## Why it matters for investors **Margins are the story.** Here is the trend over the last five quarters: | Quarter ended | Revenue | Gross margin | Operating margin | |---|---|---|---| | June 29, 2025 | $10.37B | 55.6% | 26.6% | | Sept. 28, 2025 | $11.27B | 55.3% | 25.9% | | Dec. 28, 2025 | $12.25B | 54.6% | 27.5% | | March 29, 2026 | $10.60B | 53.8% | 21.8% | | June 28, 2026 | $9.95B | 53.1% | 16.3% | The table shows that revenue peaked in the December 2025 quarter. Gross margin (the share of sales left after the direct cost of making chips) slipped every quarter. Operating margin, which also subtracts research and sales spending, dropped sharply in the last two quarters. When sales fall and spending does not fall as fast, profit shrinks faster than revenue. We lack a call digest, so we cannot cite management's stated reasons. **Net income is noisy.** Net income was -$3.12B in the quarter ended Sept. 28, 2025, and $7.37B in the quarter ended March 29, 2026. In the latest quarter, net income of $2.00B was higher than operating income of $1.63B. The data provided does not show why. Operating income is the cleaner measure of the business. **Cash flow has weakened.** Free cash flow, the cash left after capital spending, was $4.42B in the quarter ended Dec. 28, 2025, then $1.92B, then $495.0M in the latest quarter. In that latest quarter Qualcomm spent $1.36B on buybacks and $973.0M on dividends, which was more than the free cash flow it produced. At the end of that quarter, cash and short-term investments were $8.30B and total debt was $15.27B; FMP separately reports net debt of $10.74B. Debt/equity is 0.55. Financial-strength scores are decent, with a Piotroski score of 7 (on a 0-9 scale) and an Altman Z of 5.91 (higher means lower distress risk). **Valuation versus peers.** On trailing-12-month numbers, Qualcomm's P/E (price relative to earnings) is 18.77. Its price/sales is 3.99, EV/EBITDA is 13.86, price/free cash flow is 16.89, and dividend yield is 2.2%. Its net margin is 21.0%. Peers: | Company | P/E | Net margin | |---|---|---| | Qualcomm (QCOM) | 18.77 | 21.0% | | Broadcom (AVGO) | 40.46 | 42.9% | | InterDigital (IDCC) | 25.50 | 38.5% | | Marvell (MRVL) | 64.41 | 27.9% | Qualcomm is cheaper than these three on P/E and has a lower net margin than all three. Lower multiples can reflect slower growth expectations, so the gap is not proof the stock is undervalued. **Analysts are split.** The consensus rating is "Hold" across 69 ratings: 1 strong buy, 29 buy, 34 hold, 5 sell and 0 strong sell. Price targets average 211.00 USD with a median of 200.00 USD, a high of 400.00 USD and a low of 159.00 USD. The share price is just above the lowest target. Recent rating actions were Susquehanna keeping Neutral on Oct. 21 and TD Cowen keeping Buy on Oct. 19. **Our MoonshotScore.** Stock Expert AI's MoonshotScore V2 for QCOM is 76.5, rated Strong. Compared with its sector, quality is the strongest pillar at 84. Momentum (66) and growth (65) are middling. Safety (61) and valuation (60) are the weakest. A high quality reading alongside soft growth and momentum matches the picture above: a profitable, established business whose recent trend has weakened. **What could go wrong.** Risks visible in the data include: - Falling margins that do not recover. - Free cash flow that does not cover buybacks and dividends. - Revenue lower than a year earlier in both segments. - A stock that has already fallen sharply and could react strongly to guidance. Over the last 90 days, the 30 most recent insider filings show 0 open-market purchases and 7 sales, though older filings in the window may be missing. ## What to watch next - **Nov. 4 results:** Whether revenue lands near the $10.14B estimate and EPS near 2.17. - **Operating margin:** Whether the decline from 16.3% stops or continues. - **Segment trends:** Whether QCT and QTL revenue both stay below year-ago levels. - **Free cash flow:** Whether it recovers toward the levels of earlier quarters, and whether buybacks slow. - **Guidance and AI commentary:** What management says about the coming quarter and about its AI target, which an Oct. 31 Seeking Alpha preview questioned. ## Frequently asked questions ## Q: Why did Qualcomm stock fall on Oct. 30, 2026? Qualcomm shares showed a change of -11.12% on the latest quote as of Oct. 30, 2026, but the data we have does not name a single cause. Same-day headlines described a drop across several chip stocks. Those are third-party views, not company statements. ## Q: When does Qualcomm report earnings and what do analysts expect? Qualcomm reports fiscal fourth-quarter results on Nov. 4, 2026. Analysts expect EPS of 2.17 and revenue of $10.14B. In its last report on July 29, 2026, the company beat the revenue estimate and missed the EPS estimate by $0.02. ## Q: Is Qualcomm stock cheap compared with Broadcom and Marvell? Qualcomm's trailing P/E of 18.77 is lower than Broadcom's 40.46 and Marvell's 64.41, and also lower than InterDigital's 25.50. Its net margin of 21.0% is lower than each of them too. A lower multiple can mean the market expects slower growth or weaker profits, so it is context, not a verdict. Analysts' consensus rating is "Hold." *This is educational content, not investment advice. Past performance does not guarantee future results.* ## Related Tickers - [QCOM](https://www.stockexpertai.com/stock/qcom) ## Sources - [Stock Expert AI QCOM page: quote, financials and MoonshotScore](https://www.stockexpertai.com/stock/qcom) - [seekingalpha.com: Qualcomm Earnings Preview: Its $15B AI Target Still Doesn't Justify Today's Prices](https://seekingalpha.com/article/4960636-qualcomm-earnings-preview-its-15b-ai-target-still-doesnt-justify-todays-prices) - [247wallst.com: Broadcom Falls 5% Despite DA Davidson Upgrade on Anthropic and OpenAI IPO Hopes; Arm and Qualcomm Sink 10%, Marvell Drops 8%](https://247wallst.com/investing/2026/10/30/broadcom-falls-5-despite-da-davidson-upgrade-on-anthropic-and-openai-ipo-hopes-arm-and-qualcomm-sink-10-marvell-drops-8/) - [zacks.com: Curious about Qualcomm (QCOM) Q4 Performance? Explore Wall Street Estimates for Key Metrics](https://www.zacks.com/stock/news/3019449/curious-about-qualcomm-qcom-q4-performance-explore-wall-street-estimates-for-key-metrics?cid=CS-STOCKNEWSAPI-FT-fundamental_analysis|nfm_preview-3019449) --- _Written by Stock Expert AI's research desk with AI assistance. Figures come from FMP data and the official sources cited in the article. Educational research, not financial advice._