Broadcom reported quarterly results that came in mixed relative to analyst expectations, with the chipmaker missing revenue guidance while delivering strong earnings growth. The company generated revenue of $15.95 billion during the period, up 86% from the prior year, and net income more than tripled to $13.09 billion, or $2.68 per share, compared to $4.14 billion, or 85 cents per share, in the corresponding quarter a year earlier. For the fourth quarter, Broadcom issued guidance for $34.8 billion in revenue, which fell short of the $35.03 billion that analysts were expecting.
Chief Executive Officer Hock Tan outlined an aggressive expansion plan centered on artificial intelligence infrastructure. The company projects doubling AI revenue to $115 billion for fiscal 2027 and doubling again to $230 billion for fiscal 2028, with expectations to exceed $30 in earnings per share. The guidance significantly exceeds consensus estimates of $25.86 per share for fiscal 2028. Tan indicated that Broadcom will deliver tens of billions of dollars in processors to Google annually over the coming years and detailed plans involving multiple AI-focused companies including OpenAI, Meta, Anthropic, and Google.
During the quarter, the company highlighted custom chip development efforts, including the Jalapeno processor designed with OpenAI and infrastructure upgrades with Apple for U.S.-based chip manufacturing. Broadcom outlined deployment plans for various processors, projecting a 1.3 gigawatt deployment of Jalapeno in 2027 with potential expansion to over 5 gigawatts, while Anthropic is expected to deploy 5 gigawatts of TPU 8i chips in 2027 with additional capacity planned. Finance Chief Amie Thuener noted that Broadcom may provide residual value guarantees as contingent liabilities to support these artificial intelligence laboratories.
Broadcom’s semiconductor segment revenue exceeded expectations, generating $16.7 billion against a $15.2 billion average estimate, while infrastructure software revenue came in slightly below consensus at $8.75 billion versus $8.82 billion. The stock has gained roughly 6% in 2026 to date, trailing the S&P 500’s 12% advance over the same period, despite the company’s substantial gains since the end of 2022 that have propelled its market capitalization to approximately $1.8 trillion.
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