Broadcom (NASDAQ:AVGO) Issues Earnings Results

Broadcom (NASDAQ:AVGO) posted its earnings results on Wednesday. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating analysts’ consensus estimates of $2.40 by $0.04, FiscalAI reports. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The company had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. During the same quarter in the previous year, the business earned $1.58 earnings per share. The company’s revenue for the quarter was up 47.9% on a year-over-year basis.

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

• Broadcom posted record Q2 revenue of $22.2 billion, up 48% year over year, driven by strong AI semiconductor demand. Operating margin held at a record 67% and free cash flow reached a record $10.3 billion.
• AI semiconductor revenue hit a record $10.8 billion in Q2, and the company said bookings exceeded $30 billion, with visibility now extending into 2028. Management reiterated full-year AI semiconductor revenue of $56 billion and continued confidence in >$100 billion in fiscal 2027.
• Broadcom highlighted major long-term AI customer wins across Google, Anthropic, OpenAI, Meta, and other customers, with several multi-gigawatt deployments expected to ramp in 2027 and beyond. Management said these programs support durable AI growth and already include $6 billion of purchase orders to date.
• Infrastructure Software revenue rose 9% to $7.2 billion, with ARR growth of 17% year over year and strong demand for VMware Cloud Foundation 9.1. The new release is aimed at improving efficiency and supporting enterprise AI inferencing workloads across multiple CPU/GPU platforms.
• Management guided Q3 consolidated revenue to $29.4 billion, with AI semiconductor revenue expected to accelerate to $16 billion. However, gross margin is projected to decline to about 74% due to mix shift toward AI semiconductors and away from software, even as operating margin is expected to stay around 67%.

Broadcom Price Performance

AVGO stock opened at $479.23 on Thursday. The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80. The company has a market capitalization of $2.27 trillion, a PE ratio of 93.60, a P/E/G ratio of 0.99 and a beta of 1.41. Broadcom has a 12-month low of $241.11 and a 12-month high of $495.00. The business’s fifty day moving average price is $392.87 and its 200 day moving average price is $361.19.

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be issued a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Monday, June 22nd. Broadcom’s payout ratio is currently 50.78%.

Analyst Upgrades and Downgrades

A number of research firms have commented on AVGO. UBS Group restated a “buy” rating and issued a $490.00 target price (up from $475.00) on shares of Broadcom in a research report on Monday, May 18th. Jefferies Financial Group set a $550.00 target price on Broadcom and gave the company a “buy” rating in a research report on Thursday. Seaport Research Partners restated a “neutral” rating on shares of Broadcom in a research report on Wednesday, April 8th. Wall Street Zen downgraded Broadcom from a “buy” rating to a “hold” rating in a report on Saturday, May 30th. Finally, Wells Fargo & Company reiterated an “overweight” rating and issued a $545.00 price objective (up from $430.00) on shares of Broadcom in a report on Thursday, May 14th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $461.07.

Insider Transactions at Broadcom

In other Broadcom news, Director Justine Page sold 2,018 shares of the company’s stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $353.00, for a total transaction of $712,354.00. Following the sale, the director owned 18,164 shares in the company, valued at $6,411,892. This represents a 10.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Gayla J. Delly sold 1,000 shares of the company’s stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $358.31, for a total value of $358,310.00. Following the sale, the director owned 32,352 shares in the company, valued at approximately $11,592,045.12. This trade represents a 3.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 324,282 shares of company stock worth $106,425,249. 1.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Broadcom

Large investors have recently bought and sold shares of the stock. Brighton Jones LLC increased its holdings in shares of Broadcom by 21.8% in the 4th quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer’s stock valued at $6,882,000 after acquiring an additional 5,322 shares during the last quarter. Revolve Wealth Partners LLC increased its holdings in shares of Broadcom by 10.4% in the 4th quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer’s stock valued at $1,854,000 after acquiring an additional 756 shares during the last quarter. United Bank increased its holdings in shares of Broadcom by 76.5% in the 1st quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer’s stock valued at $392,000 after acquiring an additional 1,014 shares during the last quarter. Sivia Capital Partners LLC increased its holdings in shares of Broadcom by 10.1% in the 2nd quarter. Sivia Capital Partners LLC now owns 12,693 shares of the semiconductor manufacturer’s stock valued at $3,499,000 after acquiring an additional 1,160 shares during the last quarter. Finally, Capital & Planning LLC increased its holdings in shares of Broadcom by 10.5% in the 2nd quarter. Capital & Planning LLC now owns 3,983 shares of the semiconductor manufacturer’s stock valued at $1,098,000 after acquiring an additional 378 shares during the last quarter. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Deutsche Bank raised its price target on Broadcom to $515 from $430 and kept a Buy rating, signaling continued confidence after the earnings beat. Analysts set Broadcom stock price target
• Positive Sentiment: Broadcom said AI semiconductor revenue surged to $10.8 billion, up sharply year over year, and management highlighted accelerating AI demand and stronger expectations into 2027. Broadcom Q2 Earnings Call Spotlights AI Demand Surge
• Positive Sentiment: Revenue for the quarter reached a record $22.19 billion, EPS came in above estimates at $2.44, and the company also announced a quarterly dividend of $0.65 per share. Broadcom Inc. Announces Second Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend
• Neutral Sentiment: Broadcom’s third-quarter revenue guidance of about $29.4 billion was above consensus, but investors are still waiting for EPS details and more clarity on how much of the AI growth can persist. Broadcom Inc. Announces Second Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend
• Negative Sentiment: The stock dropped because quarterly revenue came in below Wall Street’s most aggressive expectations, raising concern that the market had priced in an even stronger AI boom. Broadcom tumbles as revenue miss clouds AI boom bets
• Negative Sentiment: Several reports said shares sold off in after-hours and premarket trading after the earnings release, as investors questioned whether the AI growth story was enough to justify the stock’s premium valuation. Broadcom revenue hits record on AI chip surge but outlook disappoints

About Broadcom

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.