Broadcom (AVGO) earnings report Q2 2026

broadcom reported weaker-than-expected revenue in its fiscal second-quarter earnings report.

The stock fell in extended trading and fell further after CEO Hock Tan did not raise the company’s $100 billion AI chip sales target for the full year.

Here’s how the chipmaker performed against LSEG consensus estimates:

• Earnings per share: Adjusted $2.44 compared to estimated $2.40.
• Revenues: $22.19 billion versus the estimated $22.27 billion

Revenue rose 48% from $15 billion in the same quarter a year ago, Broadcom said in a statement. Sales have surged in recent quarters, driven by demand for dedicated AI chips, including Google’s tensor processing unit.

The company said revenue for the quarter would be about $29.4 billion, as opposed to the $28.53 billion Wall Street analysts expected.

Broadcom shares are up nearly 40% this year as of Wednesday’s close, outpacing the Nasdaq’s 16% gain. The stock is up nearly ninefold since the end of 2022, when ChatGPT launched its productive AI boom.

Net income rose 88% to $9.31 billion, or $1.91 per share, compared to $4.97 billion, or $1.03 per share, in the same quarter a year ago. Adjusted earnings exclude stock-based compensation and tax adjustments.

Broadcom helps other technology companies create custom chip designs by providing the intellectual property and other core technologies required for AI chips. Investor interest has increased as cloud giants design their own proprietary chips. In December, Tan said Anthropic had placed an order for $10 billion worth of artificial intelligence chips.

Broadcom has six key specialty chip customers, including Anthropic, Google, Meta and OpenAI, that are driving the company’s AI revenue growth, Tan said on the earnings call with analysts. However, Tan did not increase the company’s forecast that AI semiconductor sales will reach $100 billion in 2026.

“We expect this momentum to continue in fiscal 2027 and reiterate that our AI semiconductor revenue forecast will exceed $100 billion,” Tan said.

AI revenue more than doubled year-over-year to $10.8 billion in the second quarter. In his statement, Tan attributed this to the company’s custom AI chips as well as other parts needed to assemble them. He said the company expects its AI revenue to triple this quarter to $16 billion.

Broadcom reported $15.1 billion in revenue from semiconductor solutions, the company’s chip sales division, which includes AI accelerators and networking as well as networking parts and Wi-Fi chips. This revenue exceeded StreetAccount’s forecast of $14.72 billion.

It also sells enterprise software, much of which it acquired through its 2023 acquisition of VMWare. Broadcom reported infrastructure software revenue of $7.18 billion, up 9% year over year, but that fell short of the $7.32 billion in sales expected by analysts surveyed by StreetAccount.

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