QCOM
9/9 ScoreQUALCOMM 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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