QCOM
QUALCOMM Incorporated
Technology · Semiconductors · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Strong financial health metrics — a debt-to-equity ratio of 0.7 and interest coverage of 18.6 — and solid profitability including a 27.9% operating margin contributed positively to the 63.1/100 composite score.
- The consistent four-year dividend growth streak from $2.86 to $3.48 per share was a meaningful positive contributor to the composite.
- The steep -45.4% decline in net income and volatile quarterly net income swings, including a loss of $3,117,000,000 in 2025Q4, weighed on the growth and momentum factors and held the score below a higher tier.
Why Not Higher
- The dramatic contraction in net income and diluted EPS — falling -45.4% and -44.1% respectively — heavily penalized the growth factor, preventing a higher composite score despite strong revenue expansion.
- The macro theme factor scored zero under the model's current methodology despite Qualcomm's assignments to AI Infrastructure and Semiconductors, which weighed on the overall composite.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $38,962,000,000 to FY2025's $44,284,000,000, a gain of +13.7%, but net income fell sharply from FY2024's $10,142,000,000 to FY2025's $5,541,000,000 (-45.4%), and diluted EPS declined from FY2024's $8.97 to FY2025's $5.01 (-44.1%).
The model rewarded the double-digit top-line expansion but heavily penalized the steep contraction in bottom-line profitability, resulting in a below-midpoint score that reflects the mixed nature of QCOM's FY2024-to-FY2025 growth profile.
In FY2025, Qualcomm posted an operating margin of 27.9%, a net margin of 12.5%, and a return on assets of 11.1%, indicating solid earnings efficiency across multiple measures.
The model rewarded the strong operating margin and healthy asset returns, which together signal that the company converts a meaningful share of revenue into operating profit and deploys its asset base efficiently, supporting a high sub-score.
In FY2025, Qualcomm carried a debt-to-equity ratio of 0.7 and an interest coverage ratio of 18.6, against a total asset base of $50,143,000,000, reflecting a conservative leverage position and very comfortable debt-service capacity.
The model rewarded the low leverage and high interest coverage, which together indicate that the company's operating income comfortably exceeds its interest obligations and that debt is modest relative to equity, supporting a near-top financial health score.
Quarterly revenue rose from $10,365,000,000 in 2025Q3 to a peak of $12,252,000,000 in 2026Q1 before pulling back to $10,599,000,000 in 2026Q2, while operating income followed a similar arc, peaking at $3,366,000,000 in 2026Q1 and then declining to $2,309,000,000 in 2026Q2. Net income was highly volatile, swinging from a loss of $3,117,000,000 in 2025Q4 to $7,370,000,000 in 2026Q2.
The model captured a pattern of acceleration followed by deceleration in both revenue and operating income, and extreme net income volatility, which together produced a moderate momentum score reflecting an uneven recent trend rather than sustained sequential improvement.
Dividends per share have risen consecutively from $2.86 in FY2022 to $3.10 in FY2023, $3.30 in FY2024, and $3.48 in FY2025, while the dividend payout ratio stood at 68.7% of net income in FY2025.
The model rewarded the consistent multi-year dividend growth streak, which signals a reliable and growing income stream for shareholders; the elevated payout ratio reflects that a substantial portion of earnings is returned to investors, supporting the near-top dividend score.
Qualcomm is assigned to the macro themes of AI Infrastructure and Semiconductors.
Although the company carries two high-profile macro theme assignments, this assignment did not translate into a positive score under the model's current methodology for this factor.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Qualcomm posted strong double-digit revenue growth of +13.7% in FY2025, reaching $44,284,000,000, yet net income fell sharply by -45.4% to $5,541,000,000, creating a mixed growth profile that tempered the overall composite score of 63.1/100 with a Medium risk rating. On the positive side, the company maintains solid profitability metrics including a 27.9% operating margin and 11.1% return on assets, a conservative balance sheet with a debt-to-equity ratio of 0.7 and interest coverage of 18.6, and a consistent dividend growth streak from $2.86 in FY2022 to $3.48 in FY2025. Recent quarterly momentum showed acceleration into 2026Q1 followed by a pullback in 2026Q2, while the macro theme assignments to AI Infrastructure and Semiconductors did not contribute positively under the model's current methodology. Together, these factors paint a picture of a financially sound company with meaningful near-term earnings volatility.
Plain English
Qualcomm is bringing in more revenue than ever, but its profits dropped sharply last year, and its recent quarterly results have been up and down — it's a solid, well-run company that pays a growing dividend, but the earnings swings make it a mixed picture right now.
Bull Case vs. Bear Case
Bull Case
- Revenue expanded by +13.7% year-over-year to $44,284,000,000 in FY2025, demonstrating meaningful top-line momentum in a competitive semiconductor environment.
- Qualcomm's operating margin of 27.9% and return on assets of 11.1% in FY2025 reflect strong earnings efficiency and effective deployment of its $50,143,000,000 asset base.
- Dividends per share have grown consecutively every year from $2.86 in FY2022 to $3.48 in FY2025, signaling a reliable and growing income return to shareholders.
Bear Case
- Net income fell sharply by -45.4% from $10,142,000,000 in FY2024 to $5,541,000,000 in FY2025, and diluted EPS declined by -44.1% from $8.97 to $5.01, raising concerns about bottom-line sustainability.
- Quarterly operating income peaked at $3,366,000,000 in 2026Q1 and then declined to $2,309,000,000 in 2026Q2, suggesting the recent growth arc may be losing steam.
- The macro theme assignments to AI Infrastructure and Semiconductors did not translate into a positive score under the model's current methodology, limiting the composite score uplift from thematic tailwinds.
What Could Change the Picture
Bullish Triggers
- A sustained recovery in net income back toward FY2024 levels would resolve the most significant drag on the growth score and strengthen the overall investment case.
- Consistent sequential quarterly revenue and operating income growth beyond the 2026Q1 peak would signal that the recent deceleration was temporary rather than structural.
Bearish Triggers
- A continued decline in quarterly operating income below the $2,309,000,000 level seen in 2026Q2 would suggest deteriorating core profitability despite top-line growth.
- An increase in the debt-to-equity ratio beyond the current conservative 0.7 level, or a meaningful drop in interest coverage from 18.6, would erode the strong financial health profile.
Risk Profile
Medium RiskQualcomm's balance sheet is conservatively positioned with a debt-to-equity ratio of 0.7 and an interest coverage ratio of 18.6, suggesting limited near-term financial distress risk. However, the extreme volatility in quarterly net income — swinging from a loss of $3,117,000,000 in 2025Q4 to a profit of $7,370,000,000 in 2026Q2 — introduces meaningful earnings predictability risk that supports the Medium risk rating.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.