Why Qualcomm (QCOM) Could Beat Earnings Estimates Again

Qualcomm (QCOM) is positioned for a potential earnings beat in its upcoming report, building on a history of outperforming estimates with an average surprise of 8.54% over its last two quarters, notably a 16.38% surprise in the prior period. The semiconductor company's positive Zacks Earnings ESP of +0.60%, coupled with a Zacks Rank #3 (Hold), suggests a high probability of exceeding consensus, as this combination historically leads to earnings surprises nearly 70% of the time. QCOM's next earnings release is scheduled for July 30, 2025.

Analysis

Qualcomm (QCOM) presents a compelling case for a potential earnings beat in its upcoming quarterly report, scheduled for July 30, 2025, based on proprietary quantitative signals. The primary forward-looking indicator is the company's positive Zacks Earnings ESP (Expected Surprise Prediction) of +0.60%, which suggests that the most recent analyst estimates are trending more bullish than the broader consensus. According to Zacks' research, the combination of a positive ESP and the stock's current Zacks Rank #3 (Hold) has historically yielded a positive earnings surprise nearly 70% of the time. This optimistic outlook is supported by a track record of outperformance, with an average earnings surprise of 8.54% over the last two quarters. This average includes a significant 16.38% beat in the prior-prior quarter (reporting $3.41 vs. a $2.93 estimate), though the most recent quarter showed reported EPS of $2.83 against a $2.85 consensus. The key takeaway is that recent analyst revisions, considered a potent predictor, are signaling renewed strength in Qualcomm's near-term earnings potential.

Key Decisions for Investors

• Given the positive +0.60% Earnings ESP and its historical correlation with earnings beats, investors with an existing bullish thesis may consider holding or adding to positions ahead of the July 30, 2025 report.
• The stock's Zacks Rank #3 (Hold) serves as a moderating factor, suggesting investors should weigh the promising earnings signal against other fundamentals rather than viewing it as an unqualified buy signal.
• Traders focused on short-term catalysts could evaluate using the ESP indicator to position for a potential upside surprise, while long-term investors should focus on the subsequent management guidance for a clearer picture of sustained performance.