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Broadcom (IT:1AVGO)
:1AVGO
Earnings Data
Report Date
Jun 04, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
2.03Last Year’s EPS
1.36Same Quarter Last Year
Strong Buy
Based on 31 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call is strongly positive: Broadcom reported record revenue and profitability, exceptionally rapid AI semiconductor and AI networking growth, multi‑year customer engagements, secured supply for key components through 2028, and robust free cash flow and shareholder returns. Lowlights are mostly execution and concentration risks — non‑AI revenue flatness, increased inventory, dependency on a small number of large customers, and the ambitious forward guidance which could create execution risk if ramps slow. Overall, the positives (record results, high margins, clear AI momentum and supply commitments) substantially outweigh the risks highlighted on the call.Company Guidance
Record Quarterly Revenue and Strong Top-Line Growth
Q1 fiscal 2026 total revenue of $19.3 billion, up 29% year‑over‑year and a company record; Q2 guidance of approximately $22.0 billion, up 47% year‑over‑year.
Exceptional Profitability and Operating Leverage
Q1 consolidated adjusted EBITDA of $13.1 billion (68% of revenue) and operating income of $12.8 billion, with operating margin up 50 basis points YoY to 66.4%.
Breakout AI Semiconductor Growth
Semiconductor revenue hit a record $12.5 billion in Q1, up 52% YoY; AI semiconductor revenue grew 106% YoY to $8.4 billion in Q1. Q2 semiconductor guidance of $14.8 billion (up 76% YoY) with AI semiconductor revenue guidance of $10.7 billion (up ~140% YoY).
Rapid Ramp of Custom AI Accelerators (XPUs/TPUs)
Custom accelerator business grew 140% YoY in Q1; Broadcom reports multi‑customer ramps (5 customers in volume this year, a 6th customer expected to deploy >1 gigawatt in 2027) and line‑of‑sight to nearly 10 GW of capacity in 2027.
Massive 2027 Chip Revenue Visibility
Management states line‑of‑sight to AI chip revenue ("chips, just chips") in excess of $100 billion in 2027 and says supply chain capacity for leading components has been secured through 2028.
AI Networking Momentum
Q1 AI networking revenue grew 60% YoY and represented ~33% of total AI revenue; management expects AI networking to be ~40% of AI revenue in Q2, driven by Tomahawk switches and 200G SerDes leadership.
Infrastructure Software Stability and Contract Strength
Infrastructure Software revenue of $6.8 billion in Q1 (up 1% YoY) with VMware revenue +13% YoY; Q1 bookings: total contract value > $9.2 billion and ARR growth of 19% YoY; Q2 software guidance ~$7.2 billion (up 9% YoY).
Strong Cash Generation and Shareholder Returns
Q1 free cash flow of $8.0 billion (41% of revenue); returned $10.9 billion to shareholders in Q1 ($3.1B dividends, $7.8B buybacks); ended Q1 with $14.2 billion cash and Board authorized an additional $10 billion repurchase authorization.
Margin Strength Across Segments
Consolidated gross margin 77%; Semiconductor gross margin ~68% (up 30 bps YoY) and semiconductor operating margin 60% (up 260 bps YoY); Infrastructure Software gross margin 93% and operating margin 78% (up 190 bps YoY).
IT:1AVGO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
IT:1AVGO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Mar 04, 2026 | €275.55 | €288.85 | +4.83% |
Dec 11, 2025 | €337.85 | €309.55 | -8.38% |
Sep 04, 2025 | €261.70 | €285.51 | +9.10% |
Jun 06, 2025 | €219.31 | €213.18 | -2.79% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Broadcom (IT:1AVGO) report earnings?
Broadcom (IT:1AVGO) is schdueled to report earning on Jun 04, 2026, After Close (Confirmed).
What is Broadcom (IT:1AVGO) earnings time?
Broadcom (IT:1AVGO) earnings time is at Jun 04, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of Broadcom stock?
The P/E ratio of Broadcom is N/A.
What is IT:1AVGO EPS forecast?
IT:1AVGO EPS forecast for the fiscal quarter 2026 (Q2) is 2.03.
