Shares of Broadcom (AVGO) jumped in after-hours trading after the semiconductor company reported earnings for its fourth quarter of Fiscal Year 2025. Earnings per share came in at $1.95, which beat analysts’ consensus estimate of $1.87 per share. In addition, sales increased by 28.2% year-over-year, with revenue hitting $18.02 billion. This also beat analysts’ expectations of $17.47 billion.
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The company’s results were driven by the significant growth seen in AI semiconductor solutions and infrastructure software. Indeed, AI revenue soared by 74% year-over-year, while overall semiconductor solutions grew by 61% to $11.07 billion. At the same time, infrastructure software revenue jumped 39% year-over-year to $6.94 billion. This continues the firm’s impressive growth, as shown in the image below.
Guidance for 2026:
Looking forward, management has provided the following guidance for Q1 2026:
- Revenue of $19.1 billion versus analysts’ estimates of $18.3 billion.
- Adjusted EBITDA margin of 67% compared to expectations of 66.6%.
As we can see, the company’s outlook is better than expected, which likely led to the after-hours jump in the stock price.
Is AVGO Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AVGO stock based on 24 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AVGO price target of $436.33 per share implies 7.3% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
