How Will Qualcomm Stock React To Its Upcoming Earnings?
Qualcomm (NASDAQ:QCOM) is scheduled to release its earnings on Wednesday, July 30, 2025. Consensus forecasts anticipate earnings of $2.71 per share, reflecting an approximate 15% increase compared to the previous year, while revenue is expected to rise by around 10% to $10.3 billion. This growth is likely to be propelled by the company's CDMA Technologies division, which manufactures chips for mobile devices. Smartphone manufacturers are increasingly transitioning to premium chipsets, such as the Snapdragon 8 Elite, which powers Samsung's Galaxy S25 series and flagship models from Chinese companies like Vivo and Oppo.
In addition to mobile, Qualcomm is also diversifying into the automotive and IoT (Internet of Things) sectors. Its chips are progressively being utilized in vehicles, along with devices such as Meta's Quest VR headsets and Windows PCs. In the last quarter, the firm announced a 59% year-over-year growth in its automotive sector, reaching $959 million, while its IoT segment saw revenue growth of 27% to $1.58 billion. Although tariffs on imports into the U.S. have been a significant concern in the semiconductor industry, Qualcomm stated in the prior quarter that it does not foresee any substantial impact from recent changes.
The company's current market capitalization is $175 billion. Revenue generated in the past twelve months amounted to $42 billion, and it maintained operational profitability with $12 billion in operating profits and a net income of $11 billion. While much hinges on how the results compare with consensus and expectations, being aware of historical patterns could potentially increase the odds in your favor if you are a trader focused on events.
There are two strategies to achieve this: grasp the historical odds and strategically position yourself before the earnings announcement, or examine the correlation between immediate and medium-term returns following earnings, adjusting your strategy accordingly after the earnings are published. If you desire upward movement with less volatility than individual stocks, Trefis High Quality portfolio offers an alternative—having outperformed the S&P 500 and yielding returns exceeding 91% since its inception.
See earnings reaction history of all stocks
Qualcomm's Historical Odds Of Positive Post-Earnings Return
Here are some insights regarding one-day (1D) post-earnings returns:
Further data for the observed 5-Day (5D) and 21-Day (21D) returns after earnings are summarized along with the statistics in the table below.
QCOM 1D, 5D, and 21D Post Earnings Return
Correlation Between 1D, 5D, and 21D Historical Returns
A strategy that carries relatively less risk (though it may not be effective if the correlation is low) involves understanding the correlation between short-term and medium-term returns following earnings, identifying a pair with the highest correlation, and making the appropriate trade. For instance, if 1D and 5D exhibit the strongest correlation, a trader can take a "long" position for the next 5 days if the 1D post-earnings return is positive. Here is some correlation data grounded in 5-year and 3-year (more recent) history. Note that the correlation 1D_5D indicates the correlation between 1D post-earnings returns and the subsequent 5D returns.
QCOM Correlation Between 1D, 5D, and 21D Historical Returns
Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (which is a combination of all three: the S&P 500, S&P mid-cap, and Russell 2000), generating strong returns for investors. If you prefer an upside with a steadier experience than holding an individual stock like Qualcomm, consider the High Quality portfolio, which has outperformed the S&P and has achieved returns greater than 91% since it was established.
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