Broadcom Earnings Outlook - June 2026
Overview
Broadcom is set to report its second quarter earnings for fiscal year 2026 after the market closes on Wednesday. Analysts are optimistic, expecting the company to exceed revenue and earnings expectations, primarily driven by robust demand for AI networking solutions and custom-designed chips.
Market Expectations
The consensus among analysts is that Broadcom will report:
- Revenue exceeding USD 22 billion
- Earnings per share (EPS) above USD 2
However, firms like Jefferies and Morgan Stanley predict revenue could reach as high as USD 29 billion.
Key Revenue Drivers
A significant portion of the expected revenue growth is attributed to:
- AI-related revenue projected to be around USD 17 billion, fueled by growth in the networking segment and new switch deployments.
- A notable contract with Anthropic, valued at USD 10 billion, which has shifted from full server racks to chip-only deliveries, potentially contributing USD 2.0 - 2.5 billion to revenue.
Despite some delays in AI rack-related demand being pushed to 2027, analysts view this as a timing issue rather than a loss of orders.
Future Outlook
Management's commentary regarding 2027 will be crucial, as semiconductor companies are currently experiencing unprecedented growth due to significant capital expenditures from hyperscalers and AI solution developers. Analysts believe Broadcom's revenue from AI chips could exceed USD 120 billion, surpassing previous management forecasts of over USD 100 billion.
Competitive Landscape
Concerns about competition from MediaTek in Google’s TPU supply chain have been raised, but Morgan Stanley considers the threat manageable, estimating that around 15% of TPU content could be at risk. Analysts believe Broadcom will retain most of its business due to the challenges of replacing a major supplier.
Technical Analysis
From a technical perspective, Broadcom's share price has reached a critical Fibonacci extension level. If bullish momentum continues, a target price of around USD 600 is possible, while a correction could see support at approximately USD 430.