Broadcom reports fiscal Q3 2026 earnings after the close on September 2, with consensus at $3.21 EPS and $29.25 billion in revenue. The stock fell 13.01% after its last earnings release despite beating estimates, so investors will judge Wednesday's guidance more than the headline numbers.
Broadcom shares traded at $369.34, down 0.27% as of Tuesday afternoon, giving the company a market capitalization of $1.76 trillion.
Last quarter's results were strong on paper: total revenue hit $22.2 billion, a 48% increase year over year, while AI semiconductor revenue reached $10.8 billion, more than doubling from a year earlier. Operating margins came in around 67%, and free cash flow hit $10.3 billion. Yet the stock still dropped roughly 12-13% after that report, because guidance failed to clear a bar the market had already priced in.
Four watchpoints for Wednesday
Analysts are watching AI revenue momentum first: custom-chip demand, hyperscaler order growth, and new customer programs. Second is forward guidance — revenue guidance above the $29.25 billion consensus matters more than a small quarterly beat, and investors want to see whether management raises full-year expectations rather than merely repeating them.
Third is margin durability. Annual gross margin rose from 73.9% in FY2021 to 77.3% in FY2025, and new AI programs only help if scarce manufacturing capacity doesn't erode that profitability. Fourth is concentration and timing, since custom-chip revenue can arrive in uneven batches tied to a small number of large customers.
The targets Broadcom set for itself
For Q3 2026, Broadcom guided for revenue of $29.4 billion, including $16 billion from AI semiconductors, implying more than 200% year-over-year growth in that segment. For the full fiscal year, the company is targeting $56 billion in AI semiconductor revenue, and for fiscal 2027 that target climbs above $100 billion. The company has secured long-term contracts with Google and OpenAI for custom AI accelerators, but that same concentration means a shift in spending from even one major client could meaningfully move results.
Looking further out, consensus projects $105.80 billion in total revenue for fiscal 2026 and $173.18 billion for fiscal 2027. Those figures leave little room for vague commentary when Broadcom reports Wednesday after the close.
Sources: Investing.com, Crypto Briefing
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