Broadcom AVGO Earnings Blow Out Estimates: Stock Surges 5% After Hours
Broadcom just delivered one of the most impressive earnings reports in semiconductor history — and the AI story is getting bigger by the quarter. AVGO reported Q1 fiscal 2026 results after the close on Wednesday, March 4, crushing every estimate on the board and issuing guidance that stunned even the most bullish analysts on Wall Street.
AVGO Q1 Fiscal 2026 Earnings: The Numbers
Broadcom reported adjusted earnings per share of $2.05 against the $2.03 consensus estimate, with revenue of $19.31 billion beating the $19.18 billion expected. Revenue jumped 29% year over year during the fiscal first quarter, which ended on February 1. Net income increased to $7.35 billion, or $1.50 per share, from $5.50 billion, or $1.14 per share, in the same quarter a year earlier.
| Metric | Actual | Estimate | Beat? |
|---|---|---|---|
| Adjusted EPS | $2.05 | $2.03 | ✓ |
| Revenue | $19.31B | $19.18B | ✓ |
| AI Revenue | $8.4B | ~$8.2B | ✓ |
| Adjusted EBITDA Margin | 68% | 66% | ✓ |
AVGO AI Revenue: Up 106% Year Over Year
AI semiconductor revenue reached $8.4 billion in Q1 — driven by robust demand for custom AI accelerators and AI networking.
CEO Hock Tan made a headline-grabbing declaration on the conference call: "We have line of sight to achieve AI revenue from chips — just chips — in excess of $100 billion in 2027." Tan also said Broadcom has secured the supply chain required to achieve this target.
Tan called for one gigawatt of Google tensor processing units for Anthropic in 2026 and over three gigawatts in 2027. He also confirmed OpenAI should be deploying over one gigawatt of its first-generation custom chip in 2027 — and said Meta's MTIA custom accelerator roadmap "is alive and well," with Meta targeting multiple gigawatts of custom accelerator capacity in 2027 and beyond.
AVGO Q2 Guidance: Another Blowout Quarter Expected
For Q2, Broadcom guided revenue of $22 billion — obliterating the $20.56 billion analyst consensus — with a 68% adjusted profit margin, ahead of the 66% consensus. That $22 billion quarter would represent approximately 47% year-over-year revenue growth — a stunning acceleration.
The board declared a quarterly dividend of $0.65 per share and authorized a new $10 billion share repurchase program — a strong signal of management confidence in future cash generation.
AVGO Stock Price Today: Up After Hours, Down in 2026
AVGO stock rose 5% in extended trading Wednesday following the earnings release.
AVGO shares traded at approximately $313.90 Thursday morning — sitting 24.29% below the 52-week high of $414.61 and just below the 200-day moving average of $319.26. Broadcom shares are down approximately 8% so far in 2026, while the S&P 500 has been roughly flat over the same period.
Wall Street price targets range from $340 to $485 per share, with the average target near $433 — implying approximately 38% upside from current levels. A conservative target of $340 implies roughly 8% upside from Thursday's price.
Broadcom Beyond AI: VMware and the $73 Billion Backlog
Broadcom entered fiscal 2026 with a $73 billion AI-related backlog — a figure CEO Hock Tan described as reflecting "unprecedented" bookings over the past three months and the strongest demand signal the company has ever seen.
Free cash flow reached $8.01 billion in Q1. Adjusted EBITDA came in at $13.13 billion — 68% of revenue — reflecting the powerful operating leverage in Broadcom's business model as AI revenue scales rapidly.
Broadcom's next earnings report is expected in early June 2026. At $22 billion in guided Q2 revenue with AI scaling toward $100 billion by 2027, AVGO remains one of the most consequential AI infrastructure stocks in the market today. As always, this is financial information only — not investment advice.
