Business & Finance
Broadcom tops quarterly forecasts and raises multiyear AI revenue outlook
The chipmaker reported strong earnings growth and projected $230 billion in artificial intelligence revenue for fiscal 2028, though shares traded lower after hours.
The short version
- Broadcom reported fiscal third-quarter 2026 revenue of $29.59 billion and adjusted EPS of $3.32, both beating analyst expectations.
- CEO Hock Tan raised the company's fiscal 2027 AI revenue projection to $115 billion and issued a fiscal 2028 AI target of $230 billion with adjusted EPS exceeding $30.
- Broadcom partnered with Apollo and Blackstone to create a financing vehicle helping clients like Anthropic and OpenAI fund infrastructure deployments.
- Despite the long-term outlook, Broadcom's stock dipped in extended trading as fourth-quarter total revenue guidance slightly missed consensus.
Key facts
- Broadcom's fiscal third-quarter 2026 revenue climbed 85% year-over-year to $29.59 billion, topping the LSEG consensus estimate of $29.36 billion.[CNBC]
- Adjusted earnings per share for the quarter rose 96% to $3.32, surpassing expectations of $3.24.[CNBC]
- Broadcom projected fiscal 2028 AI revenue to reach $230 billion and adjusted EPS to surpass $30, exceeding FactSet estimates of $177 billion and $26.38, respectively.[CNBC]
- The company established a special purpose vehicle platform with Apollo and Blackstone to facilitate more than 20 gigawatts of compute infrastructure by the end of 2028 for Anthropic and OpenAI.[CNBC]
- For the fiscal fourth quarter, Broadcom forecast total revenue of approximately $34.8 billion, below the LSEG consensus of $35.03 billion, while forecasting AI semiconductor revenue to hit $21.7 billion.[CNBC]
What remains uncertain
- Broadcom's multiyear AI revenue projections are subject to physical constraints including chip supply, available land, power, and data center structures.[CNBC]
- Market reaction was restrained by potential headwinds, including customer concentration among frontier AI labs and potential political pushback against data center construction.[CNBC]