- Broadcom reported fiscal Q3 2026 revenue of $29.59B, with AI semiconductor revenue of $16.7B, up 221% year over year. The company raised its full-year FY26 AI revenue forecast to $58B from $56B.
- Management targets $115B in AI chip revenue for FY27 and $230B for FY28, a doubling from the 2027 projection, with over $30 EPS targeted by FY28.
- The Q4 FY26 revenue guide of about $34.8B landed slightly below analyst estimates and triggered a sell-the-news reaction, even though it implies quarterly AI revenue of roughly $21.7B, a 236% year-over-year increase.
- Custom silicon is the growth engine: OpenAI's Jalapeno accelerator reportedly outperforms NVIDIA's Grace Blackwell GPU for inference workloads at half the cost, and Broadcom launched VMware Private AI Cloud to extend into enterprise private AI.
- Balance-sheet and capital-return strength: $13.67B in Q3 free cash flow, a new $10B share repurchase program, a 15th consecutive annual dividend increase, and lower long-term debt.
- The average analyst price target sits near $533, roughly 50% above the current share price, with supply constraints rather than demand weakness cited as the binding factor on near-term growth. Customers include Google, Meta, OpenAI, and Anthropic.
Quotes
“CEO Hock Tan projecting AI revenue to reach $115 billion in FY2027 and $230 billion in FY2028”
“The culprit for the post-earnings dip was Broadcom's Q4 fiscal 2026 revenue guidance of approximately $34.8 billion, which landed slightly below what some analysts had penciled in.”
“Financially, Broadcom shows strength with $13.67 billion in Q3 free cash flow, a new $10 billion share repurchase program, and a 15th consecutive annual dividend increase, while reducing long-term debt”
“One key dynamic that analysts have flagged: supply constraints, not demand weakness, are the binding factor on Broadcom's near-term growth.”