Broadcom Inc. · AVGO · FY2026 Q2 · Calendar Q2 2026

Broadcom Q2 FY26: AI Chip Revenue Hits $10.8B but Stock Sinks 13%

Broadcom delivered record Q2 FY26 revenue of $22.2B with AI semiconductor sales surging 143% YoY to $10.8B, now nearly half of total revenue. Free cash flow hit a record $10.3B and operating margin held at ~67%. Despite beating both EPS and revenue estimates, shares fell roughly 13%, with continued downward drift of ~11% in subsequent sessions. The sell-off appears tied to gross-margin compression from the AI-mix shift, customer concentration risk, and elevated inventory levels. Management struck a confident tone, backed by $30B in AI bookings and a new $35B AI XPU platform, but the market remains skeptical on execution risk at scale.

Reported After market closeNASDAQTechnology $1823.20B market cap
90quality score

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.…

Earnings scorecard

Reported versus consensus
Reported EPS $2.44 Consensus $2
EPS surprise +1.7% Reported versus consensus
Reported revenue $22.19B Consensus $22.13B
Revenue surprise +0.3% Reported versus consensus

Earnings History

Estimate Beat Miss Match
AVGO EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 4 future estimate-only quarters. Q1 '24 estimate $10.37 Q1 '24 actual $1.10, miss Q2 '24 estimate $1.09 Q2 '24 actual $1.10, match Q3 '24 estimate $1.22 Q3 '24 actual $1.24, beat Q2 '25 estimate $1.57 Q2 '25 actual $1.58, match Q3 '25 estimate $1.66 Q3 '25 actual $1.69, beat Q4 '25 estimate $1.87 Q4 '25 actual $1.95, beat Q1 '26 estimate $2.03 Q1 '26 actual $2.05, beat Q2 '26 estimate $2.40 Q2 '26 actual $2.44, beat Q3 '26 estimate $3.21 Q4 '26 estimate $3.84 Q1 '27 estimate $4.09 Q2 '27 estimate $4.50
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Analyst Consensus ?

ConsensusBuy57 ratings
Bullish4986.0%
Neutral814.0%
Bearish00.0%

Analyst 52W Price Targets

$383.22Previous close
$61.5Low
$333.46Average
$582High

Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Jul 28, 2026. Not an FN2 forecast.

Firm-level rating actions

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

FirmRatingPrior ratingActionDate
Erste Group Hold BuyDowngradeJul 7, 2026
UBS Buy BuyMaintainJun 4, 2026
Truist Securities Buy BuyMaintainJun 4, 2026
TD Cowen Buy BuyMaintainJun 4, 2026
Rosenblatt Buy BuyMaintainJun 4, 2026
RBC Capital Sector Perform Sector PerformMaintainJun 4, 2026
Oppenheimer Outperform OutperformMaintainJun 4, 2026
Morgan Stanley Overweight OverweightMaintainJun 4, 2026
Mizuho Outperform OutperformMaintainJun 4, 2026
Macquarie Neutral OutperformDowngradeJun 4, 2026
Keybanc Overweight OverweightMaintainJun 4, 2026
JP Morgan Overweight OverweightMaintainJun 4, 2026
Jefferies Buy BuyMaintainJun 4, 2026
Deutsche Bank Buy BuyMaintainJun 4, 2026
DA Davidson Neutral NeutralMaintainJun 4, 2026
Cantor Fitzgerald Overweight OverweightMaintainJun 4, 2026
Benchmark Buy BuyMaintainJun 4, 2026
B of A Securities Buy BuyMaintainJun 4, 2026
Susquehanna Positive PositiveMaintainMay 28, 2026
Wells Fargo Overweight OverweightMaintainMay 14, 2026
Citigroup Buy BuyMaintainMay 12, 2026
Bernstein Outperform OutperformMaintainApr 14, 2026
Seaport Global Neutral BuyDowngradeApr 8, 2026
Evercore ISI Group Outperform OutperformMaintainMar 5, 2026
Piper Sandler Overweight OverweightMaintainDec 12, 2025
Barclays Overweight OverweightMaintainDec 12, 2025
Goldman Sachs Buy BuyMaintainNov 26, 2025
Argus Research Buy BuyMaintainSep 8, 2025
Baird Outperform OutperformMaintainDec 13, 2024
Summit Insights Group Buy HoldUpgradeDec 8, 2023
BMO Capital Outperform OutperformMaintainSep 1, 2023
Credit Suisse Outperform OutperformMaintainDec 10, 2021
Loop Capital Buy BuyMaintainSep 4, 2020
Suntrust Robinson Humphrey Buy BuyMaintainJun 5, 2020
Charter Equity Market Outperform Market PerformUpgradeApr 9, 2020
PiperJaffray Overweight OverweightMaintainDec 10, 2019
Cascend Buy BuyMaintainNov 22, 2019
Cowen & Co. Market Perform OutperformDowngradeFeb 22, 2019
MKM Partners Buy BuyMaintainDec 7, 2018
B. Riley Securities Buy NeutralUpgradeDec 3, 2018
B. Riley FBR Buy NeutralUpgradeDec 3, 2018
Nomura Buy NeutralUpgradeSep 17, 2018
Bank of America Buy NeutralUpgradeSep 7, 2018
Raymond James Market Perform Strong BuyDowngradeJul 13, 2018
Canaccord Genuity Buy BuyMaintainJun 8, 2018
Argus Buy BuyMaintainMay 5, 2018
B. Riley Buy BuyMaintainMay 1, 2018
Pacific Crest Overweight OverweightMaintainNov 3, 2016
Craig-Hallum Buy BuyMaintainJun 3, 2016
Brean Capital Buy BuyMaintainJun 3, 2016
CLSA Outperform OutperformMaintainMay 17, 2016
FBR Capital Outperform OutperformMaintainMar 4, 2016
Sidoti & Co. Buy BuyMaintainFeb 24, 2016
Topeka Hold HoldMaintainFeb 16, 2016
Drexel Hamilton Buy BuyMaintainNov 10, 2015
JMP Securities Market Outperform Market PerformUpgradeSep 10, 2015
Capstone Buy BuyMaintainOct 3, 2012
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Named analyst price targets

Upside is calculated against the persisted previous close $383.22. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
D.A. DavidsonAnalyst unavailable$400$410.33 +4.4%Jun 4, 2026
Truist FinancialWilliam Stein$550$407.11 +43.5%Jun 4, 2026
Goldman SachsAnalyst unavailable$525$407.07 +37.0%Jun 4, 2026
RBC CapitalSrini Pajjuri$400$406.45 +4.4%Jun 4, 2026
OppenheimerAnalyst unavailable$535$479.23 +39.6%Jun 4, 2026
Morgan StanleyAnalyst unavailable$502$479.23 +31.0%Jun 4, 2026
KeyBancJohn Vinh$575$479.23 +50.0%Jun 4, 2026
UBSAnalyst unavailable$485$479.23 +26.6%Jun 4, 2026
MacquarieAnalyst unavailable$437$479.23 +14.0%Jun 4, 2026
Deutsche BankRoss Seymore$515$479.23 +34.4%Jun 4, 2026
JefferiesBlayne Curtis$550$479.23 +43.5%Jun 4, 2026
Morgan StanleyJoseph Moore$485$448.94 +26.6%Jun 1, 2026
SusquehannaChristopher Rolland$490$421.86 +27.9%May 28, 2026
Evercore ISIMark Lipacis$582$420.71 +51.9%May 19, 2026
UBSTimothy Arcuri$490$420.89 +27.9%May 18, 2026
Wells FargoAnalyst unavailable$545$416.79 +42.2%May 14, 2026
D.A. DavidsonAnalyst unavailable$335$331.17 -12.6%Feb 12, 2026
Wolfe ResearchChris Caso$400$330.73 +4.4%Jan 30, 2026
Wells FargoAnalyst unavailable$430$339.89 +12.2%Jan 15, 2026
RBC CapitalSrini Pajjuri$370$339.89 -3.4%Jan 14, 2026
Mizuho SecuritiesVijay Rakesh$480$338.17 +25.3%Jan 9, 2026
Goldman SachsAnalyst unavailable$450$347.62 +17.4%Jan 5, 2026
Truist FinancialAnalyst unavailable$510$329.88 +33.1%Dec 19, 2025
UBSTimothy Arcuri$475$359.9 +23.9%Dec 15, 2025
Truist FinancialAnalyst unavailable$500$360.32 +30.5%Dec 12, 2025
Deutsche BankAnalyst unavailable$430$362.18 +12.2%Dec 12, 2025
Morgan StanleyAnalyst unavailable$462$362.05 +20.6%Dec 12, 2025
Robert W. BairdAnalyst unavailable$420$406.96 +9.6%Dec 12, 2025
OppenheimerAnalyst unavailable$450$406.96 +17.4%Dec 12, 2025
Mizuho SecuritiesVijay Rakesh$450$376.58 +17.4%Dec 12, 2025
Piper SandlerHarsh Kumar$430$406.96 +12.2%Dec 12, 2025
BernsteinStacy Rasgon$475$406.96 +23.9%Dec 12, 2025
BarclaysTom O'Malley$500$406.96 +30.5%Dec 12, 2025
KeyBancJohn Vinh$500$406.96 +30.5%Dec 12, 2025
OppenheimerRick Schafer$435$381.03 +13.5%Dec 5, 2025
SusquehannaChristopher Rolland$450$380.61 +17.4%Dec 4, 2025
Morgan StanleyAnalyst unavailable$443$387.56 +15.6%Dec 1, 2025
UBSAnalyst unavailable$472$388.05 +23.2%Dec 1, 2025
Goldman SachsAnalyst unavailable$435$385.03 +13.5%Nov 25, 2025
Raymond JamesAnalyst unavailable$420$366 +9.6%Nov 20, 2025
Mizuho SecuritiesVijay Rakesh$435$349.24 +13.5%Oct 21, 2025
Morgan StanleyAnalyst unavailable$409$356.7 +6.7%Oct 14, 2025
BarclaysTom O'Malley$450$356.7 +17.4%Oct 14, 2025
UBSTimothy Arcuri$415$356.7 +8.3%Oct 14, 2025
Deutsche BankRoss Seymore$400$356.7 +4.4%Oct 14, 2025
Mizuho SecuritiesAnalyst unavailable$430$356.7 +12.2%Oct 13, 2025
KeyBancJohn Vinh$460$356.03 +20.0%Oct 13, 2025
KeyBancJohn Vinh$420$327.9 +9.6%Sep 30, 2025
KeyBancJohn Vinh$400$334.89 +4.4%Sep 5, 2025
OppenheimerAnalyst unavailable$360$334.89 -6.1%Sep 5, 2025
Piper SandlerAnalyst unavailable$375$334.89 -2.1%Sep 5, 2025
BarclaysTom O'Malley$400$334.89 +4.4%Sep 5, 2025
Morgan StanleyAnalyst unavailable$357$298.24 -6.8%Sep 2, 2025
OppenheimerAnalyst unavailable$325$308.65 -15.2%Aug 28, 2025
UBSTimothy Arcuri$345$294.23 -10.0%Aug 25, 2025
Piper SandlerAnalyst unavailable$315$294 -17.8%Aug 22, 2025
Morgan StanleyAnalyst unavailable$338$302.62 -11.8%Jul 30, 2025
HSBCAnalyst unavailable$400$263.77 +4.4%Jun 24, 2025
Truist FinancialWilliam Stein$295$262.95 -23.0%Jun 6, 2025
BarclaysTom O'Malley$215$169.58 -43.9%Apr 22, 2025
DaiwaLouis Miscioscia$225$172.09 -41.3%Apr 2, 2025
Truist FinancialAnalyst unavailable$267$194.96 -30.3%Mar 7, 2025
Mizuho SecuritiesAnalyst unavailable$250$194.96 -34.8%Mar 7, 2025
Morgan StanleyJoseph Moore$265$223.86 -30.8%Dec 20, 2024
Morgan StanleyJoseph Moore$233$171.81 -39.2%Dec 13, 2024
Mizuho SecuritiesVijay Rakesh$220$182.31 -42.6%Oct 14, 2024
Bank of America SecuritiesVivek Arya$215$181.67 -43.9%Oct 11, 2024
KeyBancJohn Vinh$210$137 -45.2%Sep 6, 2024
Truist FinancialWilliam Stein$204$152.82 -46.8%Sep 6, 2024
Rosenblatt SecuritiesHans Mosesmann$240$152.82 -37.4%Sep 6, 2024
Mizuho SecuritiesVijay Rakesh$190$152.82 -50.4%Sep 6, 2024
Goldman SachsToshiya Hari$190$152.82 -50.4%Sep 6, 2024
Morgan StanleyJoseph Moore$180$152.82 -53.0%Sep 6, 2024
Wells FargoAaron Rakers$170$159.82 -55.6%Aug 27, 2024
OppenheimerRick Schafer$200$171.42 -47.8%Jul 15, 2024
Wells FargoAaron Rakers$205$170.07 -46.5%Jul 15, 2024
CFRAAngelo Zino$185$168.07 -51.7%Jun 13, 2024
Deutsche BankRoss Seymore$190$167.96 -50.4%Jun 13, 2024
OppenheimerRick Schafer$200$149.55 -47.8%Jun 13, 2024
Truist FinancialWilliam Stein$204.5$149.55 -46.6%Jun 13, 2024
Melius ResearchBen Reitzes$205$149.55 -46.5%Jun 13, 2024
Rosenblatt SecuritiesHans Mosesmann$165$149.55 -56.9%Jun 13, 2024
JefferiesBlayne Curtis$205$149.55 -46.5%Jun 13, 2024
Robert W. BairdTristan Gerra$195$149.55 -49.1%Jun 13, 2024
Mizuho SecuritiesVijay Rakesh$190$149.55 -50.4%Jun 13, 2024
Piper SandlerHarsh Kumar$200$149.55 -47.8%Jun 13, 2024
Wells FargoAaron Rakers$170$149.55 -55.6%Jun 13, 2024
UBSTimothy Arcuri$173.5$149.55 -54.7%Jun 13, 2024
BarclaysTom O'Malley$200$149.55 -47.8%Jun 13, 2024
Evercore ISIMark Lipacis$201$149.55 -47.5%Jun 13, 2024
Morgan StanleyJoseph Moore$176.5$149.55 -53.9%Jun 13, 2024
Goldman SachsToshiya Hari$185$149.55 -51.7%Jun 13, 2024
BernsteinStacy Rasgon$195$149.55 -49.1%Jun 13, 2024
CitigroupChristopher Danely$156$145.55 -59.3%Jun 11, 2024
Melius ResearchBen Reitzes$185$132.86 -51.7%Jun 3, 2024
BarclaysTom O'Malley$150$132.91 -60.9%Apr 17, 2024
Evercore ISIMatthew Prisco$162$131.07 -57.7%Apr 15, 2024
Deutsche BankRoss Seymore$150$133.94 -60.9%Apr 8, 2024
CFRAAngelo Zino$160$135.35 -58.2%Mar 22, 2024
KeyBancWeston Twigg$160$134.8 -58.2%Mar 21, 2024
BarclaysTom O\'Malley$140.5$134.8 -63.3%Mar 21, 2024
Piper SandlerHarsh Kumar$165$134.8 -56.9%Mar 21, 2024
Goldman SachsToshiya Hari$155$13.09 -59.6%Mar 8, 2024
Mizuho SecuritiesVijay Rakesh$100$139.72 -73.9%Mar 7, 2024
CitigroupChristopher Danely$110$105.61 -71.3%Dec 12, 2023
Truist FinancialWilliam Stein$101.5$94.43 -73.5%Dec 11, 2023
SusquehannaChristopher Rolland$110$93.88 -71.3%Nov 28, 2023
Truist FinancialWilliam Stein$99.5$82.91 -74.0%Sep 22, 2023
Loop Capital MarketsJohn Vinh$100$87.56 -73.9%Sep 1, 2023
Loop Capital MarketsAmbrish Srivastava$89$88.93 -76.8%Aug 29, 2023
KeyBancJohn Vinh$94$80.96 -75.5%Jun 2, 2023
OppenheimerRick Schafer$95$79 -75.2%Jun 2, 2023
SusquehannaAnalyst unavailable$65$54.08 -83.0%Dec 5, 2022
Piper SandlerAnalyst unavailable$71.5$54.08 -81.3%Dec 5, 2022
Truist FinancialWilliam Stein$63$44.41 -83.6%Nov 3, 2022
Mizuho SecuritiesVijay Rakesh$72.5$52.24 -81.1%Sep 9, 2022
Loop Capital MarketsJohn Vinh$70$51.46 -81.7%Sep 2, 2022
Deutsche BankRoss Seymore$63.5$53.55 -83.4%Jul 30, 2022
Mizuho SecuritiesVijay Rakesh$70$52.64 -81.7%May 23, 2022
SusquehannaChristopher Rolland$68$56.29 -82.3%May 9, 2022
Truist FinancialWilliam Stein$65.7$58.06 -82.9%Apr 11, 2022
Morgan StanleyJoseph Moore$70.3$59.6 -81.7%Mar 4, 2022
Piper SandlerHarsh Kumar$75$56.63 -80.4%Mar 1, 2022
OppenheimerRick Schafer$72$57.61 -81.2%Feb 24, 2022
BarclaysBlayne Curtis$70$61.78 -81.7%Jan 12, 2022
Argus ResearchJim Kelleher$71.5$61.26 -81.3%Dec 16, 2021
CitigroupChristopher Danely$68.5$61.36 -82.1%Dec 13, 2021
Goldman SachsToshiya Hari$67$61.36 -82.5%Dec 13, 2021
Credit SuisseJohn Pitzer$70$62.34 -81.7%Dec 10, 2021
Cowen & Co.Matt Ramsay$61.5$62.34 -84.0%Dec 10, 2021
Wells FargoAaron Rakers$63.5$62.34 -83.4%Dec 10, 2021
BMO CapitalAmbrish Srivastava$67.5$62.34 -82.4%Dec 10, 2021
UBSTimothy Arcuri$66$55.76 -82.8%Dec 6, 2021
Evercore ISIKenneth Talanian$64$55.76 -83.3%Dec 6, 2021
Bank of America SecuritiesVivek Arya$58$45.1 -84.9%Jun 9, 2021
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Market reaction

event-close to next-session close
Stock move -12.6% Event window
SPY move +0.4% Same window
Abnormal move -13.0% Stock minus SPY
Volume 3.5× Versus trailing sessions
Subsequent drift -10.7% Up to 20 sessions
AVGOSPY benchmark

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Transcript intelligence

What changed

Revenue reached $22.2B (est. $22.1B) and EPS came in at $2.44 (est. $2.40). AI semiconductor revenue jumped 143% YoY to $10.8B, representing 49% of total revenue. Operating margin remained robust at ~67%. Free cash flow set a record at $10.3B. Infrastructure software grew 9% YoY on VMware Cloud Foundation 9.1. AI bookings reached $30B, far exceeding shipped revenue. The company launched a $35B AI XPU platform funded by Apollo and Blackstone. Inventory days rose to 86, reflecting supply-chain positioning for AI demand. Despite the beat, the stock fell 12.6% with abnormal move of -13.0% and subsequent drift of -10.7%.

Guidance delta

Guidance maintained. Management expects AI semiconductor revenue to double in H2 FY26 and exceed $100B in FY27. Q3 AI semiconductor shipments targeted at $16B; full-year FY26 AI semiconductor revenue targeted at $56B. Capex outlook stable.

Key takeaways

  • AI semiconductor revenue reached $10.8B, 49% of total revenue, up 143% YoY
  • Operating margin held robust at ~67% despite mix-related gross-margin pressure
  • Guidance calls for AI semiconductor revenue to double in H2 FY26 and exceed $100B in FY27
  • Infrastructure software grew 9% YoY, led by VMware Cloud Foundation 9.1
  • $30B in AI bookings provide revenue visibility through 2028

Management priorities

  • Scaling AI semiconductor shipments to $16B in Q3 and $56B for FY26
  • Rolling out next-generation 200-terabit Ethernet switch
  • Commercial launch of the AI XPU platform with Apollo and Blackstone funding
  • Continued VCF 9.1 enhancements for heterogeneous compute support
  • Expanding gigawatt-scale compute deployments through 2027-2028

Related earnings events

Technology

Sources

  1. Earnings call transcript and parsed analysis · 2026-06-04T04:18:21.389427+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-07-28T05:01:55.680977+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-28T05:01:55.678233+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 . For educational purposes only; not investment advice.