Broadcom Inc. · AVGO · FY2025 Q3 · Calendar Q3 2025

Broadcom raises outlook as AI accelerators drive record growth

The quarter supports the view that strong AI demand and earnings growth can sustain Broadcom's trajectory: record revenue, a $110 billion backlog, rising XPU contribution, and raised guidance point to continued momentum. The counterevidence is weak non-AI semiconductor demand, customer concentration, fulfillment risk, and potential mix-related margin pressure.

Reported After market closeNASDAQTechnology $1663.11B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $1.69 Consensus $1.66
EPS surprise +1.8% Reported versus consensus
Reported revenue $15.95B Consensus $15.83B
Revenue surprise +0.8% Reported versus consensus

Market reaction

event-close to next-session close
Stock move +9.4% Event window
SPY move -0.3% Same window
Abnormal move +9.7% Stock minus SPY
Volume 4.2× Versus trailing sessions
Subsequent drift +1.0% Up to 20 sessions
AVGOSPY benchmark

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Transcript intelligence

What changed

Compared with the prior quarter, management reported stronger AI momentum, a larger consolidated backlog, a fourth AI customer, new networking products, and a raised outlook. The analysis also identifies continued weakness in non-AI semiconductor markets.

Guidance delta

Management raised its outlook, with Q4 revenue guided to $17.4 billion and AI semiconductor revenue expected to increase 66% year over year.

Key takeaways

  • Record Q3 FY2025 revenue and EBITDA reinforced strong demand.
  • AI semiconductor revenue reached $5.2 billion, up 63% year over year; XPU products represented 65% of AI revenue.
  • A $110 billion backlog and a fourth AI customer adding $10 billion of orders support continued demand, while non-AI semiconductor markets remained weak.
  • Tomahawk 6, Jericho 4, and VMware Cloud Foundation 9.0 are central product priorities.

Management priorities

  • Scale production for the fourth AI customer and pursue additional AI orders.
  • Expand Tomahawk 6 and Jericho 4 deployments for large AI clusters.
  • Roll out VMware Cloud Foundation 9.0 and increase XPU share with existing customers.

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Earnings History

Estimate Beat Miss Match
AVGO REVENUE earnings history estimate and actual scatter chart 9 reported fiscal quarters and 3 future estimate-only quarters. Q1 '24 estimate $12B Q1 '24 actual $12B, beat Q2 '24 estimate $12B Q2 '24 actual $12B, beat Q3 '24 estimate $13B Q3 '24 actual $13B, beat Q2 '25 estimate $15B Q2 '25 actual $15B, beat Q3 '25 estimate $16B Q3 '25 actual $16B, beat Q4 '25 estimate $17B Q4 '25 actual $18B, beat Q1 '26 estimate $19B Q1 '26 actual $19B, beat Q2 '26 estimate $22B Q2 '26 actual $22B, beat Q3 '26 estimate $29B Q4 '26 estimate $35B Q1 '27 estimate $37B
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Analyst Consensus ?

ConsensusBuy58 ratings
Bullish5289.7%
Neutral610.3%
Bearish00.0%

Analyst 52W Price Targets

$358.39Current
$61.5Low
$350.57Average
$600High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Sep 29, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
DA Davidson Neutral NeutralMaintainSep 4, 2026
Citigroup Buy BuyMaintainSep 4, 2026
Truist Securities Buy BuyMaintainSep 3, 2026
TD Cowen Buy BuyMaintainSep 3, 2026
StoneX Buy BuyMaintainSep 3, 2026
Show 53 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $358.39. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Piper SandlerAnalyst unavailable$460$364.38 +28.4%Sep 9, 2026
D.A. DavidsonGil Luria$350$355.49 -2.3%Sep 4, 2026
Truist FinancialAnalyst unavailable$520$344.98 +45.1%Sep 3, 2026
Raymond JamesAnalyst unavailable$475$343.45 +32.5%Sep 3, 2026
Cantor FitzgeraldAnalyst unavailable$600$342.93 +67.4%Sep 3, 2026
See 140 more

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Company context

Snapshot as of publication

Broadcom Inc. is a prominent global technology enterprise focused on the innovation, development, and supply of advanced semiconductor solutions and critical infrastructure software. The company's headquarters are situated in San Jose, California, and it maintains a significant team of 19,000 full-time staff. Its operations are segmented into four primary divisions: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-09-29T11:01:01.683099+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-09-29T11:01:01.680362+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-09-29. For educational purposes only; not investment advice.