Make-or-break moment for Qualcomm? April 29 earnings may reveal what’s next for QCOM stock - key signals to watch

Qualcomm (QCOM) earnings expectations April 29: Investors in Qualcomm are heading into April 29 with one key question: can the company hold its ground as the smartphone market weakens?

Qualcomm's Strong Revenue Growth but Signs of Slowing Momentum

The company isn’t struggling, but the pressure is building. After a strong start to fiscal 2026, Qualcomm now faces a moment where it needs to show that its growth can continue despite shifting industry conditions.

Qualcomm’s QCT Division and Handset Performance

In its most recent quarter, Qualcomm delivered steady results. Revenue rose 5% year-over-year to $12.2 billion, while earnings increased 3% to $3.5 per share, as per a report. Its core semiconductor business, QCT, brought in $10.6 billion, with handset chips making up the majority. However, that segment grew just 3%, hinting at slowing momentum.

Automotive Business Gains Strength with Major Partnerships

Meanwhile, other parts of the business are gaining strength. Automotive revenue reached $1.1 billion, up 15%, supported by partnerships with major automakers like Volkswagen Group, Audi, and Porsche, as per a Barchart report. The IoT segment also showed growth, rising 9% to $1.7 billion, driven by demand across industrial and consumer applications.

Smartphone Market Slowdown and Memory Constraints Impact

Still, smartphones remain the company’s backbone and that’s where the concern lies. A global memory crunch and reduced production, especially in China, are weighing on handset demand. Even as Qualcomm pushes into automotive and IoT, that transition is taking time.

Analyst Downgrade: JPMorgan’s Concerns Explained

This is reflected in cautious sentiment from analysts. JPMorgan has flagged slower diversification and expects handset revenue to drop significantly in 2026, downgrading the stock and lowering its price target.

Qualcomm Q2 Earnings Preview: Key Expectations for April 29

Looking ahead, Qualcomm itself is signaling a softer quarter. It expects Q2 revenue between $10.2 billion and $11 billion, with earnings per share potentially falling to $2.45–$2.65, as reported by Barchart. Handset sales are projected to decline, while IoT may grow modestly and automotive could see strong acceleration.

For investors, this upcoming earnings report is less about past performance and more about direction. They’ll be watching closely for signs that smartphone demand is stabilizing, and whether newer segments like automotive, IoT, and AI can meaningfully offset the slowdown.

QCOM Stock Price Prediction

Despite the uncertainty, opinions on the stock remain mixed. While most analysts suggest holding, there is still some optimism about its longer-term potential, especially if Qualcomm can successfully navigate this transition phase.

FAQs

Why is April 29 important for Qualcomm investors?
It’s when the company reports Q2 earnings, giving insight into its current performance and outlook.

Why are smartphone sales a concern?
The segment is slowing due to a global memory crunch and reduced production.