Broadcom (AVGO) Q1 earnings report 2026
broadcom The chipmaker reported better-than-expected earnings and revenue and issued a strong forecast for the current period as it continues to benefit from the AI boom. The stock rose 5% in extended trading Wednesday.
“We have the pipeline to exceed $100 billion in AI revenue from chips alone by 2027,” Broadcom CEO Hock Tan said on a conference call with analysts. “We have also secured the supply chain needed to achieve this.”
Here is the company’s performance compared to the LSEG consensus:
- Earnings per share: Adjusted $2.05, estimated $2.03
- Revenues: $19.18 billion vs. $19.31 billion estimated
Revenues rose 29% year-over-year in the first quarter of the fiscal year ending Feb. 1. expression.
Net income rose to $7.35 billion, or $1.50 per share, from $5.50 billion, or $1.14 per share, in the same quarter a year earlier. Adjusted earnings exclude stock-based compensation and tax adjustments.
Broadcom said it expects an adjusted profit margin of 68% for the second quarter, higher than StreetAccount’s forecast of 66%. The company said it expects revenue of $22 billion, beating the average estimate of $20.56 billion, according to LSEG.
The guidance includes semiconductor solutions revenue of $14.8 billion, above StreetAccount’s consensus of $13.06 billion.
Broadcom helps other companies translate their chip designs into silicon, providing intellectual property and back-end technologies before they are shipped to chip manufacturing facilities. Taiwan Semiconductor Manufacturing Company. This is a role that is gaining importance Amazon, Google, Meta And Microsoft Design customized chips.
AI revenue rose 106% from the previous year to $8.4 billion, “driven by strong demand for dedicated AI accelerators and AI networks,” CEO Hock Tan said in a statement. Tan predicted in December that AI revenue would double.
Broadcom reported $12.52 billion in revenue from semiconductor solutions; This was above the $12.25 billion expected by analysts surveyed by StreetAccount. Broadcom made a new statement this quarter Wi-Fi 8 chip.
For infrastructure software, Broadcom said it had revenue of $6.80 billion, below StreetAccount’s estimate of $7.02 billion.
In recent weeks, investors have become increasingly concerned that generative AI models could pose a competitive threat to mature software companies. The iShares Expanded Technology-Software Sector Exchange Traded Fund is down nearly 19% so far this year.
“Our infrastructure software is not interrupted by artificial intelligence,” said Tan, whose company acquired server virtualization software company VMware in 2023.
Broadcom said its board has authorized new share buybacks of up to $10 billion through 2026.
In December, Tan said Anthropic had ordered $10 billion worth of custom chips. Last week, US Defense Secretary Pete Hegseth said the Pentagon would call Anthropic a “supply chain risk to national security” and President Donald Trump ordered government agencies to stop using Anthropic after the AI startup refused to allow its technology to be used for mass domestic surveillance or fully autonomous weapons.
During Wednesday’s conference call, Tan called for one gigawatt of Google tensor processing units for Anthropic in 2026 and over three gigawatts in 2027.
OpenAI should deploy more than a gigawatt of its first-generation custom chip in 2027, Tan said.
He said Broadcom would benefit from this. MetaDespite analysts’ skepticism about the future of Meta’s custom silicon program, the MTIA custom accelerator.
“The MTIA roadmap is alive and well,” Tan said, adding that it is now shipping and Meta is targeting multiple gigawatts of dedicated accelerator capacity in 2027 and beyond.
As of Wednesday’s close, Broadcom shares were down 8% so far in 2026, while the S&P 500 index was flat.
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