Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin16.3%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin20.1%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
D
Years to Pay Off Debt7.6 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$1.2B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$11.6B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book5.75x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
B
Free Cash Flow$495M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income24.8%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$2.9B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About QUALCOMM Incorporated
QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software with connectivity and computing technologies for use in mobile devices; automotive systems for connectivity, digital cockpit, and ADAS/AD; and IoT, including consumer electronic devices, industrial devices, and edge networking products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing LTE, and/or OFDMA-based 5G products and derivatives; to use cellular standard-essential patents, including 3G, 4G and 5G for cellular devices. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and sells related products to the United States government agencies and their contractors. In addition, the company is also involved in Qualcomm government technologies and data center businesses. Further, it provides security and intelligence services for unmanaged networks through software-based network security solutions. QUALCOMM Incorporated was incorporated in 1985 and is headquartered in San Diego, California.
QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software with connectivity and computing technologies for use in mobile devices; automotive systems for connectivity, digital cockpit, and ADAS/AD; and IoT, including consumer electronic devices, industrial devices, and edge networking products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing LTE, and/or OFDMA-based 5G products and derivatives; to use cellular standard-essential patents, including 3G, 4G and 5G for cellular devices. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and sells related products to the United States government agencies and their contractors. In addition, the company is also involved in Qualcomm government technologies and data center businesses. Further, it provides security and intelligence services for unmanaged networks through software-based network security solutions. QUALCOMM Incorporated was incorporated in 1985 and is headquartered in San Diego, California.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering QUALCOMM Incorporated at $151.57.
The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.
At $151.57, the stock trades at a 355% premium to its Graham Number of $33.29. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q2 2026
Q4 2025
Q4 2024
Gross Profit %
53.1%▼
54.6%•
N/A
Operating Margin %
16.3%▼
27.5%•
N/A
Net Income %
20.1%▼
24.5%•
N/A
Diluted EPS
1.87▼
2.78•
N/A
Balance Sheet Highlights
Metric
Q2 2026
Q4 2025
Q4 2024
Total Assets
$57.4B
$53.0B
N/A
Total Debt
$15.3B▲
$14.8B•
N/A
Working Capital
$11.6B▼
$14.8B•
N/A
Years to Pay Debt
7.63
4.93
N/A
Cash Flow Highlights
Metric
Q2 2026
Q4 2025
Q4 2024
Free Cash Flow
$495M▼
$4.4B•
N/A
Owner Earnings
$2.9B
$3.9B
N/A
CapEx % of Net Income
24.8%
18.3%
N/A
Income Statement
2026
2025
2024
Tax Effect Of Unusual Items
133,380
26,178
Tax Rate For Calcs
0
0
Normalized EBITDA
2,334,000
3,938,000
Total Unusual Items
702,000
171,000
Total Unusual Items Excluding Goodwill
702,000
171,000
Net Income From Continuing Operation Net Minority Interest
2,002,000
3,004,000
Reconciled Depreciation
396,000
393,000
Reconciled Cost Of Revenue
4,670,000
5,568,000
EBITDA
3,036,000
4,109,000
EBIT
2,640,000
3,716,000
Net Interest Income
-81,000
-33,000
Interest Expense
178,000
169,000
Interest Income
97,000
136,000
Normalized Income
1,433,380
2,859,178
Net Income From Continuing And Discontinued Operation
2,002,000
3,004,000
Total Expenses
8,321,000
8,886,000
Total Operating Income As Reported
1,626,000
3,366,000
Diluted Average Shares
1,069,000
1,079,000
Basic Average Shares
1,057,000
1,070,000
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
2,002,000
3,004,000
Net Income Common Stockholders
2,002,000
3,004,000
Net Income
2,002,000
3,004,000
Net Income Including Noncontrolling Interests
2,002,000
3,004,000
Net Income Continuous Operations
2,002,000
3,004,000
Tax Provision
460,000
543,000
Pretax Income
2,462,000
3,547,000
Other Income Expense
917,000
214,000
Other Non Operating Income Expenses
149,000
43,000
Special Income Charges
-38,000
-12,000
Write Off
38,000
12,000
Earnings From Equity Interest
66,000
Gain On Sale Of Security
740,000
183,000
Net Non Operating Interest Income Expense
-81,000
-33,000
Interest Expense Non Operating
178,000
169,000
Interest Income Non Operating
97,000
136,000
Operating Income
1,626,000
3,366,000
Operating Expense
3,651,000
3,318,000
Other Operating Expenses
68,000
Research And Development
2,607,000
2,453,000
Selling General And Administration
976,000
865,000
Gross Profit
5,277,000
6,684,000
Cost Of Revenue
4,670,000
5,568,000
Total Revenue
9,947,000
12,252,000
Operating Revenue
9,947,000
12,252,000
Balance Sheet
2026
2025
2024
Ordinary Shares Number
1,057,000
1,074,000
Share Issued
1,057,000
1,074,000
Net Debt
10,737,000
7,612,000
Total Debt
15,270,000
14,817,000
Tangible Book Value
11,874,000
7,263,000
Invested Capital
42,928,000
37,890,000
Working Capital
11,591,000
14,786,000
Net Tangible Assets
11,874,000
7,263,000
Common Stock Equity
27,658,000
23,073,000
Total Capitalization
40,439,000
37,890,000
Total Equity Gross Minority Interest
27,658,000
23,073,000
Stockholders Equity
27,658,000
23,073,000
Gains Losses Not Affecting Retained Earnings
395,000
575,000
Other Equity Adjustments
395,000
575,000
Retained Earnings
27,263,000
22,498,000
Total Liabilities Net Minority Interest
29,709,000
29,961,000
Total Non Current Liabilities Net Minority Interest
18,296,000
20,139,000
Other Non Current Liabilities
5,434,000
5,243,000
Non Current Deferred Liabilities
81,000
79,000
Non Current Deferred Revenue
81,000
79,000
Long Term Debt And Capital Lease Obligation
12,781,000
14,817,000
Long Term Debt
12,781,000
14,817,000
Current Liabilities
11,413,000
9,822,000
Other Current Liabilities
3,720,000
3,984,000
Current Deferred Liabilities
280,000
379,000
Current Deferred Revenue
280,000
379,000
Current Debt And Capital Lease Obligation
2,489,000
1,365,000
Current Debt
2,489,000
1,365,000
Other Current Borrowings
1,991,000
Commercial Paper
498,000
Payables And Accrued Expenses
4,924,000
5,459,000
Current Accrued Expenses
1,470,000
1,505,000
Payables
3,454,000
3,954,000
Total Tax Payable
557,000
1,245,000
Income Tax Payable
557,000
1,245,000
Accounts Payable
2,897,000
2,709,000
Total Assets
57,367,000
53,034,000
Total Non Current Assets
34,363,000
28,426,000
Other Non Current Assets
7,683,000
7,723,000
Non Current Deferred Assets
5,679,000
Non Current Deferred Taxes Assets
5,679,000
Goodwill And Other Intangible Assets
15,784,000
15,810,000
Other Intangible Assets
1,510,000
1,627,000
Goodwill
14,274,000
14,183,000
Net PPE
5,217,000
4,893,000
Accumulated Depreciation
Gross PPE
Leases
Construction In Progress
Machinery Furniture Equipment
Buildings And Improvements
Land And Improvements
Current Assets
23,004,000
24,608,000
Other Current Assets
1,653,000
1,968,000
Restricted Cash
0
0
Inventory
8,379,000
6,665,000
Finished Goods
2,692,000
2,287,000
Work In Process
5,005,000
4,026,000
Raw Materials
682,000
352,000
Receivables
4,668,000
4,153,000
Other Receivables
Accounts Receivable
4,668,000
4,153,000
Cash Cash Equivalents And Short Term Investments
8,304,000
11,822,000
Other Short Term Investments
3,771,000
4,617,000
Cash And Cash Equivalents
4,533,000
7,205,000
Cash Flow
2026
2025
2024
Free Cash Flow
495,000
4,416,000
Repurchase Of Capital Stock
-1,364,000
-2,650,000
Repayment Of Debt
-1,993,000
0
Issuance Of Debt
1,992,000
0
Issuance Of Capital Stock
223,000
Capital Expenditure
-496,000
-549,000
End Cash Position
4,533,000
7,205,000
Beginning Cash Position
5,435,000
7,843,000
Effect Of Exchange Rate Changes
4,000
0
Changes In Cash
-906,000
-638,000
Financing Cash Flow
-2,471,000
-3,882,000
Cash Flow From Continuing Financing Activities
-2,471,000
-3,882,000
Net Other Financing Charges
-356,000
-283,000
Cash Dividends Paid
-973,000
-949,000
Common Stock Dividend Paid
-973,000
-949,000
Net Common Stock Issuance
-1,141,000
-2,650,000
Common Stock Payments
-1,364,000
-2,650,000
Common Stock Issuance
223,000
Net Issuance Payments Of Debt
-1,000
0
Net Short Term Debt Issuance
-1,000
0
Short Term Debt Payments
-1,993,000
0
Short Term Debt Issuance
1,992,000
0
Net Long Term Debt Issuance
0
Long Term Debt Payments
0
Investing Cash Flow
574,000
-1,721,000
Cash Flow From Continuing Investing Activities
574,000
-1,721,000
Net Other Investing Changes
-8,000
34,000
Net Investment Purchase And Sale
1,413,000
-116,000
Sale Of Investment
1,937,000
767,000
Purchase Of Investment
-524,000
-883,000
Net Business Purchase And Sale
-335,000
-1,090,000
Purchase Of Business
-335,000
-1,090,000
Capital Expenditure Reported
-496,000
-549,000
Operating Cash Flow
991,000
4,965,000
Cash Flow From Continuing Operating Activities
991,000
4,965,000
Change In Working Capital
-1,648,000
594,000
Change In Other Working Capital
-31,000
-130,000
Change In Other Current Assets
-242,000
553,000
Change In Payables And Accrued Expense
-57,000
27,000
Change In Accrued Expense
23,000
100,000
Change In Payable
-80,000
-73,000
Change In Account Payable
-80,000
-73,000
Change In Inventory
-996,000
-99,000
Change In Receivables
-322,000
243,000
Changes In Account Receivables
-322,000
243,000
Other Non Cash Items
-5,000
-40,000
Stock Based Compensation
830,000
888,000
Asset Impairment Charge
Deferred Tax
307,000
291,000
Deferred Income Tax
307,000
291,000
Depreciation Amortization Depletion
396,000
393,000
Depreciation And Amortization
396,000
393,000
Operating Gains Losses
-952,000
-165,000
Earnings Losses From Equity Investments
-66,000
Gain Loss On Investment Securities
-886,000
-165,000
Net Income From Continuing Operations
2,002,000
3,004,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $10.4B▼ $9.9B-4.0%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 55.6%▼ 53.1%-2.5pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 15.7%▼ 16.3%+0.7pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 25.7%▼ 20.1%-5.6pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$9.9B/qtr (≈$39.8B ann.)
vs > $1.5B annualised revenue
✅ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
2.02x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$495M
vs Positive
Operating Cash Flow
$991M
Latest quarter · Buffett's cash reality check
ROIC
2.8%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
5.8x
Net Assets: $27.7B
Asset Context — Semiconductors
This company's primary assets are likely intangible (brand, IP, talent, network effects) and don't appear on the balance sheet. Net Assets may significantly understate intrinsic value. ROIC and free cash flow are more reliable indicators of business quality.
⚠️Net margin compressed 5.6pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.12%
Low — management has little skin in the game
Return on Equity (ROE)
7.2%
Weak — poor returns on equity
Return on Assets (ROA)
3.5%
Fair — average asset utilization
Share Buybacks (Latest Year)
$8.8B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+0.0% YoY
Debt is declining — management is deleveraging
Leadership Team
Cristiano Renno Amon
CEO, President & Director
Age 55
Pay: $5,539,054
0.277% of net income
Akash Palkhiwala
Executive VP, CFO & COO
Age 49
Pay: $2,629,426
0.131% of net income
Alexander Rogers
Executive VP, President of Qualcomm Technology Licensing (QTL) & Global Affairs
Age 68
Pay: $2,349,262
0.117% of net income
Brett William Simpson
Senior Vice President of Investor Relations
Age 51
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
10.10%
106,015,881
Vanguard Capital Management LLC
6.60%
69,341,312
State Street Corporation
4.96%
52,091,726
Invesco Ltd.
3.36%
35,245,336
Vanguard Portfolio Management LLC
3.26%
34,192,863
Charles Schwab Investment Management, Inc.
2.94%
30,864,702
Geode Capital Management, LLC
2.83%
29,734,061
Morgan Stanley
1.90%
19,991,313
Risk Analysis
Beta (Market Risk)
1.66
High volatility — moves more than the market
Short Interest
3.8% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
0.55x
Conservative balance sheet — low financial risk
Current Ratio
2.02x
Strong liquidity — Graham approved
52-Week Price Range
Low: $121.99Current: $151.57High: $259.92
Currently at 21% of 52-week range
QUALCOMM Incorporated (QCOM) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $33.29. Margin of safety: 0%. Gross profit margin: 53.1%. Operating margin: 16.3%. Net margin: 20.1%. Market cap: $159.1B. Sector: Technology. Industry: Semiconductors. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.