Broadcom Q3 beats but Q4 guidance weak as analysts lift targets
Broadcom reported fiscal 2026 Q3 revenue of $29.59B vs $29.36B estimates and adjusted EPS of $3.32 vs $3.24. It guided Q4 revenue to about $34.8B vs $35.03B estimates; Cantor, BMO and Rosenblatt raised price targets.
Broadcom Inc (NASDAQ: AVGO ) on Wednesday reported better-than-expected financial results for the third quarter of fiscal 2026, but issued weak guidance for the fourth quarter.
Broadcom posted third-quarter revenue of $29.59 billion, beating analyst estimates of $29.36 billion.
The company reported adjusted earnings of $3.32 per share for the quarter, beating estimates of $3.24 per share, according to Pro. "Demand for our custom AI accelerators and networking continues to be very strong.
Q3 AI semiconductor revenue of $16.7 billion grew 221% year-over-year, and 54% quarter-over-quarter," said Hock Tan, president and CEO of Broadcom.
Broadcom sees fourth-quarter revenue of approximately $34.8 billion versus estimates of $35.03 billion.
The soft guidance appears to be weighing on shares after hours.
Broadcom shares fell 3.1% to $355.89 in pre-market trading.
These analysts made changes to their price targets on Broadcom following earnings announcement.
Cantor Fitzgerald analyst C.J.
Muse maintained the stock with an Overweight rating and raised the price target from $525 to $600.
BMO Capital analyst Harsh Kumar maintained the stock with an Outperform rating and raised the price target from $455 to $575.
Rosenblatt analyst Sajal Dogra maintained the stock with a Buy and raised the price target from $500 to $600.
Considering buying AVGO stock? Here’s what analysts think: Photo via Shutterstock