Broadcom (NASDAQ:AVGO) Releases Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Broadcom (NASDAQ:AVGO) announced its quarterly earnings data on Wednesday. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.22 by $0.10, FiscalAI reports. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter last year, the company posted $1.69 earnings per share. Broadcom’s quarterly revenue was up 85.5% on a year-over-year basis.

Here are the key takeaways from Broadcom’s conference call:

• Record results and strong guidance: Q3 revenue reached $29.6 billion, up 86% year over year, while operating margin rose to a record 67.9% and free cash flow reached $13.7 billion. Broadcom expects Q4 revenue of $34.8 billion, up 93% year over year.
• AI semiconductor momentum accelerated: Q3 AI revenue grew 221% year over year to $16.7 billion, and management projects $21.7 billion in Q4 AI revenue. Broadcom raised its fiscal 2026 AI revenue outlook to approximately $58 billion and forecast roughly $115 billion in fiscal 2027 and $230 billion in fiscal 2028.
• Expanding custom-accelerator customer base: Broadcom highlighted growing deployments with Google, Anthropic, OpenAI, and Meta, including multi-year TPU and custom XPU programs. Management said demand exceeds its current outlook, although actual deployments depend on data-center readiness.
• AI networking adoption remains strong: Tomahawk 6 is being deployed by AI hyperscalers, while Tomahawk Ultra is beginning to gain traction in scale-up applications. Broadcom also plans significant capacity expansion for optical components, including EMLs, CW lasers, and VCSELs.
• Supply and margin risks remain: Land, power, data-center construction, leading-edge wafers, substrates, HBM, and other system components could affect deployment timing. Rising memory content and the increasing mix of XPUs are expected to pressure gross margin, with Q4 guidance at approximately 73%, while future financing arrangements for AI customers will be evaluated case by case.

Broadcom Stock Down 0.7%

Shares of NASDAQ:AVGO opened at $367.24 on Thursday. Broadcom has a one year low of $289.96 and a one year high of $495.00. The company has a 50 day moving average of $384.15 and a 200-day moving average of $377.14. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The stock has a market cap of $1.75 trillion, a price-to-earnings ratio of 61.21, a P/E/G ratio of 0.71 and a beta of 1.44.

Broadcom Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be paid a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, September 21st. Broadcom’s dividend payout ratio (DPR) is 43.33%.

Insider Buying and Selling at Broadcom

In related news, Director Justine Page sold 1,602 shares of Broadcom stock in a transaction on Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the completion of the sale, the director directly owned 17,426 shares of the company’s stock, valued at $6,514,884.36. The trade was a 8.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Gayla J. Delly sold 1,890 shares of the stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the transaction, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. The trade was a 5.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 61,644 shares of company stock worth $24,016,214 over the last quarter. 1.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Broadcom

Several large investors have recently bought and sold shares of AVGO. State Street Corp increased its position in shares of Broadcom by 2.7% in the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock valued at $65,788,194,000 after buying an additional 5,040,801 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in Broadcom by 3.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock worth $29,607,500,000 after acquiring an additional 2,491,644 shares in the last quarter. Amundi grew its stake in Broadcom by 7.1% in the fourth quarter. Amundi now owns 23,787,630 shares of the semiconductor manufacturer’s stock valued at $8,232,897,000 after acquiring an additional 1,570,814 shares during the period. California Public Employees Retirement System grew its stake in Broadcom by 17.4% in the fourth quarter. California Public Employees Retirement System now owns 13,616,185 shares of the semiconductor manufacturer’s stock valued at $4,712,562,000 after acquiring an additional 2,016,804 shares during the period. Finally, Cardano Risk Management B.V. grew its stake in Broadcom by 895.2% in the fourth quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer’s stock valued at $4,391,940,000 after acquiring an additional 11,414,701 shares during the period. Institutional investors own 76.43% of the company’s stock.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reported fiscal third-quarter revenue of approximately $29.6 billion, up 86% year over year, while non-GAAP earnings per share of $3.32 exceeded the $3.22 consensus estimate. Net income rose to $13.09 billion from $4.14 billion a year earlier. Broadcom third-quarter financial results
• Positive Sentiment: AI semiconductor revenue surged 221% year over year to $16.7 billion, reportedly increasing 54% sequentially. Broadcom also cited more than $30 billion in AI bookings, supporting the longer-term demand case for custom processors and networking infrastructure. Broadcom AI revenue report
• Positive Sentiment: Broadcom generated $13.7 billion in free cash flow and declared a quarterly dividend of $0.65 per share, reinforcing its cash-generation and shareholder-return profile. Broadcom dividend announcement
• Neutral Sentiment: Some market commentary continues to view Broadcom as a key beneficiary of AI infrastructure bottlenecks, particularly in networking and optical connectivity. Analysts remain broadly constructive, with reported price targets well above the current trading level, although those targets may not reflect the latest guidance.
• Negative Sentiment: Fiscal fourth-quarter revenue guidance of approximately $34.8 billion came in below estimates of roughly $35.0 billion to $35.03 billion. The modest shortfall overshadowed the earnings beat and raised questions about the pace of custom-chip growth, competition and whether hyperscaler AI spending can continue accelerating. Broadcom quarterly revenue forecast
• Negative Sentiment: Concerns about data-center financing and Google’s relationship with rival Marvell added pressure, while Broadcom’s high valuation leaves little room for an outlook that is merely strong rather than exceptional. Third Point’s reported exit from its Broadcom position and heavy insider selling may also weigh on sentiment, though neither necessarily reflects the company’s operating outlook. Stocks explaining the market

Analyst Upgrades and Downgrades

A number of brokerages recently commented on AVGO. Zacks Research lowered Broadcom from a “strong-buy” rating to a “hold” rating in a research note on Thursday, May 21st. Wall Street Zen downgraded Broadcom from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 18th. Evercore reissued an “outperform” rating and set a $582.00 price objective on shares of Broadcom in a report on Tuesday, May 19th. Oppenheimer reissued an “outperform” rating and set a $535.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. Finally, Mizuho lifted their target price on shares of Broadcom from $480.00 to $530.00 and gave the company an “outperform” rating in a research note on Thursday, June 4th. Twenty-nine investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $491.97.

Broadcom Company Profile

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.