Broadcom’s stock declined 5% in extended trading following the company’s release of financial results and forward guidance. The chipmaker reported fiscal fourth-quarter revenue of $15.95 billion, representing an 86% increase compared to the prior year. Net income surged to $13.09 billion, or $2.68 per share, compared to $4.14 billion, or 85 cents per share, in the corresponding period a year earlier.
Despite the strong quarterly performance, the company’s outlook disappointed investors. Broadcom projected revenue of $34.8 billion for the current quarter, falling short of the $35.03 billion consensus estimate among analysts surveyed by LSEG. The semiconductor division generated $16.7 billion in revenue during the quarter, exceeding the $15.2 billion average estimate from StreetAccount. However, infrastructure software revenue reached $8.75 billion, below the $8.82 billion consensus projection.
Broadcom has emerged as a prominent beneficiary of the artificial intelligence sector boom, producing custom chips for major technology companies including Google, Meta, and OpenAI. During the quarter, the company highlighted the custom Jalapeno chip developed with OpenAI, while Apple announced increased spending on Broadcom for U.S. chip production. The company’s market capitalization has reached approximately $1.8 trillion.
Shares have gained approximately 6% during 2026 through the close of trading on the announcement day, lagging the broader S&P 500 index, which advanced 12% over the same timeframe. Company executives were scheduled to discuss the results during a conference call with analysts.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI