Broadcom reported financial results that exceeded certain expectations while falling slightly short on others, alongside forward-looking statements about its artificial intelligence segment. The company’s stock rose in extended trading following the announcement.
For the fiscal fourth quarter, Broadcom reported revenue of $15.95 billion in the prior year period, which increased 86% during the quarter. The company generated net income exceeding $13 billion, translating to $2.68 per share compared with 85 cents per share in the year-earlier period. Broadcom provided guidance of $34.8 billion in revenue for the next fiscal quarter, which was below the $35.03 billion analyst consensus according to LSEG. The semiconductor division generated revenue exceeding $16.7 billion, surpassing average estimates of $15.2 billion. Infrastructure software revenue reached $8.75 billion, slightly below the $8.82 billion consensus.
Chief Executive Officer Hock Tan outlined expansion plans centered on partnerships with major technology companies developing artificial intelligence systems. Broadcom expects to deliver tens of billions of dollars in processors annually to Google across multiple years. The company anticipates shipping Google Ironwood tensor processing units to Anthropic and TPU 8i chips to Google, with plans for Anthropic to deploy 5 gigawatts of TPU 8i capacity in 2027. Custom chips developed with OpenAI will continue shipping, while Meta will receive production shipments of its custom accelerator designed for inference and recommendation applications.
The company set ambitious targets for its artificial intelligence revenue segment, projecting it will reach $115 billion in the 2027 fiscal year—representing a doubling from prior levels—with plans to double again to $230 billion by fiscal 2028. Leadership indicated earnings per share could exceed $30, above the $25.86 consensus estimate for fiscal 2028. Broadcom has emerged as a major beneficiary of artificial intelligence adoption, with its stock having appreciated significantly since 2022. However, shares have underperformed the broader market in 2026, gaining approximately 6% compared with the S&P 500’s 12% advance.
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