Is the business good?
How good a business is QCOM?
Qualcomm earns 25% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
25%
Return on invested capital · cost of capital 9.0% · 16 points above what the capital costs: growth creates value
- Operating margin
- 23%
Operating margin · Semiconductors median 8.5% · 12 months to Q3 2026
- Cash conversion
- 1.13×
Cash conversion · 1.00× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −2.7%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 27% |
| FY2021 | 29% |
| FY2022 | 36% |
| FY2023 | 22% |
| FY2024 | 26% |
| FY2025 | 28% |
Details›
- Gross margin12 months to Q3 2026
- 54%
- Operating margin12 months to Q3 2026
- 23%
- Net margin12 months to Q3 2026
- 21%
- Free cash flow margin
- 24%
- R&D as % of revenue
- 22%
- Revenue, trailing twelve months
- $44.1B
- Free cash flow, trailing twelve months
- $10.4B
- Net income, trailing twelve months
- $9.26B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 25%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Semiconductors
Ranks #39 of 48 by Smart Score