Broadcom’s Q2 2026 Earnings: Record Revenue, AI Chip Growth, and Guidance Miss

Broadcom posted Q2 2026 revenue of $22.19 billion, a 48 % YoY rise, below the $22.27 billion consensus. Adjusted EPS was $2.44 versus $2.40 expected. AI semiconductor sales hit $10.8 billion, up 143 % YoY, while net income rose 88 % to $9.31 billion. The results sparked a >12 % after-hours share drop, though the stock stays up about 38 % YTD.

The Globe and Mail (Toronto)

Broadcom’s AI push centers on ASICs for clients Alphabet, Meta, Anthropic and OpenAI. Its AI backlog of $73 billion provides an 18-month supply horizon. It secured a $10 billion Anthropic order and a financing partnership with Apollo and Blackstone to back Anthropic and OpenAI purchases. Broadcom aims to ship over 10 gigawatts of AI compute in 2027, with capacity through 2028.

Broadcom slides after AI chip outlook disappoints investors

• Q2 revenue: $22.19 billion (vs. $22.27 billion estimate)

The Globe and Mail (Toronto)

• AI chip revenue: $10.8 billion (? 143 % YoY)

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• FY-23 AI revenue guidance: $100 billion (unchanged)

AVGO stock set for earnings test as AI chip revenue surges

• Q3 AI revenue forecast: $16 billion (vs. $16.36 billion Visible Alpha, $17.2 billion Bloomberg)

Broadcom slides after AI chip outlook disappoints investors

Broadcom said AI revenue grew 143 % year-over-year, exceeding its own forecast, and kept the $100 billion AI sales target for 2027. CEO Hock Tan said the company is “very comfortable” with supply through 2026-27 and will ship over 10 gigawatts of compute in 2027. FY-23 revenue outlook stays at $29.4 billion.

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Analysts said Broadcom did not raise its $100 billion AI target. Ben Bajarin, Creative Strategies said, “Nothing slows down what was estimated prior – they just didn’t raise it.” Ryan Lee, Direxion warned, “today’s miss on revenue… shows the market demands perfection for this chip rally to keep running.” Futurum Group’s Daniel Newman, said the guidance a “reset rather than thesis damage.”

Reuters

Sources list Q2 revenue as $22.19 billion, $22.2 billion or $22.0 billion, and AI Q3 guidance as $16 billion, $16.36 billion or $17.2 billion. EPS figures also vary slightly across reports.

The Globe and Mail (Toronto)

• “Nothing slows down what was estimated prior - they just didn’t raise it,” — Ben Bajarin, Creative Strategies

Reuters

• “Today's miss on revenue and subsequent post-market pull back (in shares) shows the market demands perfection for this chip rally to keep running,” — Ryan Lee, Direxion

Reuters

• “Q2 semiconductor revenue from AI of $10.8 billion grew 143% year-over-year, above our forecast, driven by increasing demand for custom AI accelerators and AI networking,” — Hock Tan, Broadcom

Reuters

• “We expect this momentum to continue into fiscal year 2027 and reiterate our AI semiconductor revenue guidance to be in excess of $100 billion,” — Hock Tan, Broadcom

The Globe and Mail (Toronto)

Broadcom will release Q3 results in July, confirming $16 billion AI revenue forecast. The firm plans to start delivering a 1-gigawatt compute package to Meta in 2027, and to expand Apollo-Blackstone financing for Anthropic and OpenAI. Investors will watch whether the company can sustain its AI growth amid rising competition.

Broadcom slides after AI chip outlook disappoints investors