Can 5G Tailwinds Help These 3 Wireless Stocks Beat Estimates?

The Wireless Equipment industry is housed within the broader Zacks Computer and Technology sector. Per the latest Earnings Preview report, total Technology sector earnings are expected to grow 91% in the April-June quarter on 28.9% higher revenues. 

Some leading Wireless Equipment companies are lined up to report their quarterly numbers in the coming days. Let's see how things have shaped up for Qualcomm Incorporated QCOM, Motorola Solutions, Inc. MSI and InterDigital, Inc. IDCC ahead of their quarterly releases. 

Qualcomm is slated to report third-quarter fiscal 2026 results on July 29 after the closing bell. In the last reported quarter, the company beat the Zacks Consensus Estimate by 8 cents. The chip-making firm is expected to have recorded a top-line contraction year over year as memory supply constraints and related price increases affect device economics. 

The Zacks Consensus Estimate for total revenues for the company is $9.71 billion. It generated revenues of $10.36 billion in the prior-year quarter. The consensus mark for earnings is currently pegged at $2.22 per share, indicating a decline from $2.77 in the year-ago quarter.

Our proven model does not predict an earnings beat for QCOM for the fiscal third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. The company has an Earnings ESP of -0.58% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

By strengthening its leadership in on-device AI, premium Snapdragon platforms and connected-edge technologies, Qualcomm is well-positioned to diversify its revenue base beyond smartphones. Continued momentum in Automotive and IoT, expanding AI capabilities and the company's entry into the data center market are expected to support long-term revenue growth, improve product diversification and strengthen earnings potential.

However, persistent weakness in the Android smartphone market due to industry-wide memory supply constraints, coupled with customer concentration and intense competition in the semiconductor industry, is expected to weigh on near-term revenues. In addition, geopolitical uncertainties, evolving trade policies and the gradual transition of major customers toward in-house chip development are likely to remain key challenges for the company’s growth and profitability.

Motorola is scheduled to report second-quarter 2026 results on Aug. 5, after the closing bell. The company pulled off a trailing four-quarter earnings surprise of 5.2%, on average, beating the earnings estimates on each occasion.  

The Chicago, IL-based company is expected to have recorded year-over-year higher revenues in the second quarter on the back of growth in both segments — Products and Systems Integration and Services and Software. It benefits from the increasing demand for its mission-critical technologies in North America and globally.

The Zacks Consensus Estimate for total revenues for the company is $3 billion. It generated revenues of $2.77 billion in the prior-year quarter. The consensus mark for earnings is currently pegged at $3.86 per share, indicating growth from $3.57 in the year-ago quarter. MSI has an Earnings ESP of +0.52% and Zacks Rank #2.

Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. These systems drive the demand for additional device sales and promote software upgrades and infrastructure expansion. The comprehensive suite of services ensures continuity and reduces risks related to critical communications operations. 

InterDigital is scheduled to report second-quarter 2026 results on July 30, before the opening bell. The company pulled off a trailing four-quarter earnings surprise of 41.5%, on average, beating the earnings estimates on each occasion.

The company is expected to have recorded year-over-year lower revenues in the second quarter due to unfavorable macroeconomic conditions and slower spending trends across portions of the consumer electronics and IoT markets. The Zacks Consensus Estimate for total revenues for the company is $144 million. It generated revenues of $300.6 million in the prior-year quarter. The consensus mark for earnings is currently pegged at $1.60 per share, indicating a decline from $6.52 in the year-ago quarter. IDCC has an Earnings ESP of 0.00% and Zacks Rank #2.

InterDigital continues to face elevated operating costs tied to ongoing research investments, enforcement actions and portfolio expansion efforts. The company remains dependent on sustained spending across wireless, AI and video technologies to preserve its competitive position in rapidly evolving markets. Demand softness in TVs, PCs, tablets and certain IoT categories is likely to delay licensing activity and reduce expansion opportunities outside the core smartphone market.

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This article originally published on Zacks Investment Research (zacks.com).

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