Broadcom delivered fiscal fourth-quarter results that largely met expectations, with revenue reaching $15.95 billion, representing an 86% increase compared to the prior-year period. Net income surged to $13.09 billion, or $2.68 per share, more than tripling from $4.14 billion, or 85 cents per share, a year earlier.
For the subsequent fiscal fourth quarter, the company projected revenue of $34.8 billion, slightly below the $35.03 billion consensus estimate according to LSEG. Semiconductor revenue exceeded analyst forecasts at $16.7 billion compared to the $15.2 billion average estimate from StreetAccount. Infrastructure software revenue generated $8.75 billion, falling short of the $8.82 billion consensus.
Chief Executive Hock Tan outlined an ambitious expansion plan centered on artificial intelligence infrastructure. The company anticipates doubling AI-related revenue to $115 billion in fiscal 2027, with plans to double again to $230 billion in fiscal 2028. Broadcom expects to deliver tens of billions of dollars in processors to Google annually over the coming years. The company is targeting a 1.3 gigawatt deployment of its Jalapeno chip for OpenAI in 2027, with potential for over 5 gigawatts thereafter. For Anthropic, Broadcom projected 5 gigawatts of TPU 8i chip deployment in 2027, with visibility to an additional 10 gigawatts.
The company is positioned to earn over $30 in earnings per share, substantially exceeding the $25.86 consensus for fiscal 2028 adjusted earnings per share. Broadcom indicated it may offer residual value guarantees to major artificial intelligence labs as contingent liabilities to facilitate their significant infrastructure investments. Finance Chief Amie Thuener characterized these arrangements as economically rational for the company, enabling strategic customers to bridge funding gaps for their capital-intensive operations.
Broadcom’s shares have gained approximately 6% during 2026 to date, trailing the S&P 500’s 12% gain during the same period. The stock has appreciated more than sixfold since the end of 2022, coinciding with the emergence of generative artificial intelligence services.
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