Broadcom Q2 revenue hits record $22.2B, AI chip sales +143% to $10.8B — but stock sinks ~12-14% as $16B Q3 AI guide misses $17.2B
Broadcom (NASDAQ: AVGO) reported fiscal Q2 2026 results on June 3: record total revenue of $22.2 billion, up 48% year over year and just above the ~$22.1B consensus, with AI semiconductor revenue of $10.8 billion soaring.
At a glance
- Fiscal Q2 2026 results June 3: record revenue $22.2 billion, +48% y/y, just above ~$22.1B consensus
- AI semiconductor revenue $10.8 billion, +143% y/y
- Adjusted EPS $2.44 (+54%), topping ~$2.40 estimate
- Stock fell roughly 12-14% after-hours/next-day
- Q3 AI-revenue guide $16 billion (+200% y/y) vs analyst expectation ~$17.2 billion
VERDICT — CONFIRMED
Broadcom (NASDAQ: AVGO) reported fiscal Q2 2026 results on June 3: record total revenue of $22.2 billion, up 48% year over year and just above the ~$22.1B consensus, with AI semiconductor revenue of $10.8 billion soaring 143% y/y on demand for custom AI accelerators and AI networking. Adjusted EPS was $2.44 (up 54%), topping the ~$2.40 estimate.
CEO Hock Tan touted 'record revenue, operating profit and free cash flow.' Yet the stock fell roughly 12-14% in after-hours/next-day trading. The cause: the Q3 AI-revenue guide of $16 billion (still +200% y/y) undershot analyst expectations of about $17.2 billion, and management reiterated — rather than raised — its full-year FY2026 AI semiconductor target of $56 billion (~180% growth over FY2025).
With first-half AI revenue already near $19 billion and the bar set sky-high after a parabolic run, investors read the unchanged $56B figure as a ceiling rather than a floor; CFRA's Angelo Zino noted 'the bar was really high going into the print.' Total Q3 revenue guidance of $29.4 billion (+84% y/y) did beat the ~$28.5B consensus. Tan added the momentum should 'continue into fiscal year 2027.'
Why it matters
the reaction is a bellwether warning that even blowout AI numbers may no longer satisfy stretched valuations, with implications for the entire AI-semiconductor complex and the richly priced IPO pipeline (SpaceX, Quantinuum, Anthropic) pricing into the same tape.
Key facts on file
- Fiscal Q2 2026 results June 3: record revenue $22.2 billion, +48% y/y, just above ~$22.1B consensus
- AI semiconductor revenue $10.8 billion, +143% y/y
- Adjusted EPS $2.44 (+54%), topping ~$2.40 estimate
- Stock fell roughly 12-14% after-hours/next-day
- Q3 AI-revenue guide $16 billion (+200% y/y) vs analyst expectation ~$17.2 billion
- FY2026 AI semiconductor target reiterated at $56 billion (~180% growth over FY2025); first-half AI revenue near $19 billion
- Total Q3 revenue guidance $29.4 billion (+84% y/y) beat ~$28.5B consensus
- CFRA's Angelo Zino: 'the bar was really high going into the print'; Hock Tan cited momentum into fiscal year 2027
