Broadcom (AVGO) Q3 earnings report 2026

Broadcom shares edged up in prolonged buying and selling on Wednesday after the chipmaker issued a rosy forecast for the following fiscal yr and hinted at rising enterprise with synthetic intelligence labs.

Here is how the corporate did as compared with LSEG consensus:

• Earnings per share: $3.32 adjusted vs. $3.24 anticipated
• Income: $29.59 billion vs. $29.36 billion anticipated

For the fiscal fourth quarter, Broadcom stated it expects income of $34.8 billion, whereas analysts had been anticipating $35.03 billion, based on LSEG.

Broadcom’s income elevated 86% in the course of the quarter from $15.95 billion a yr in the past, based on a statement. Web earnings greater than tripled to $13.09 billion, or $2.68 per share, from $4.14 billion, or 85 cents per share a yr earlier.

Broadcom has been one of many main winners of the AI growth, designing customized chips for corporations together with Google, Meta and OpenAI. The inventory has jumped by greater than sixfold because the finish of 2022, coinciding with the emergence of ChatGPT and different generative AI providers, pushing its market cap to about $1.8 trillion.

However the shares have lagged the broader indexes this yr. As of Wednesday’s shut, Broadcom shares had gained about 6% in 2026, whereas the S&P 500 index is up 12% in the identical interval.

In the course of the quarter, Broadcom touted the custom Jalapeno chip it developed with OpenAI, whereas Apple stated it could spend more with Broadcom for U.S. chip manufacturing.

CEO Hock Tan stated on a convention name that Broadcom expects to hurry up shipments of Google Ironwood tensor processing items to Anthropic and TPU 8i chips to Google.

He stated Broadcom will ship tens of billions of {dollars} of processors to Google every year for the following a number of years.

“Shipments of Jalapeno for OpenAI will proceed, and for Meta, we count on manufacturing shipments of their customized MTIA accelerator optimized for inference and suggestion at scale,” Tan stated.

Broadcom is searching for Anthropic to deploy deploy 5 gigawatts of TPU 8i chips in 2027, with line of sight to ship one other 10 gigawatts, Tan stated. Tan stated OpenAI is on the point of tape out its second-generation chip, and the lab is placing collectively plans with Broadcom for a 3rd model.

He stated Broadcom is a 1.3 gigawatt deployment of Jalapeno in 2027, with a line of sight of over 5 gigawatts for Jalapeno and the second technology.

For the 2027 fiscal yr, Tan stated Broadcom is seeking to double AI income to $115 billion, with plans to double once more to $230 billion in fiscal 2028. The corporate is on track to provide over $30 in earnings per share, he stated. The LSEG consensus for fiscal 2028 adjusted earnings per share was $25.86.

“We’re empowering two of our most strategic clients, the main AI labs, to bridge the hole between their present money stream and the numerous upfront investments required for his or her companies,” stated Amie Thuener, Broadcom’s finance chief.

Broadcom would possibly present residual worth ensures which can be contingent liabilities to the labs, she stated.

“It makes financial sense for Broadcom to take a position and allow these guys,” Tan stated.

Semiconductor income greater than tripled to $16.7 billion, exceeding the $15.2 billion common estimate, based on StreetAccount. Broadcom stated it generated $8.75 billion from infrastructure software program, lower than the $8.82 billion consensus amongst analysts polled by StreetAccount.

WATCH: What to expect from Broadcom’s Q3