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QCOM

9/9 Score

QUALCOMM Incorporated

Analysis Date: February 21, 2026

QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. The company 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 based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system 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 CDMA2000, WCDMA,LTE and/or OFDMA-based 5G standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, and IoT, and investment for supporting the design and introduction of new products and services for voice and data communications, new industries, and applications. It also provides development, and other services and related products to the United States government agencies and their contractors. QUALCOMM Incorporated was incorpotared in 1985 and is headquartered in San Diego, California.

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 21.6%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 12.0%

  • Cash Machine

    FCF / Assets > 5%

    Value: 25.6%

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 3.5%

  • Share Buybacks

    Share Count is Dropping

    Value: -1.8%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 55.1%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Technology

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 0.64x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 10.4%

Analysis Summary

This QCOM analysis shows a strong reading across the board, with a particularly impressive moat and consistent growth, which are always important hallmarks. The company is generating solid returns on its capital and isn't drowning in debt, painting a picture of a business that's built to last. While one can always hope for a wider margin of safety, the fundamentals here are certainly worth a closer look for the long haul.

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