Earnings
Home›Earnings›Results›Broadcom tops AI guidance and forecasts $115 billion i…
Broadcom tops AI guidance and forecasts $115 billion in FY2027 AI sales
The company reported $29.6 billion in sales, but its next-quarter outlook for revenue of $34.8 billion fell slightly below estimates, contributing to an after-hours drop.
Broadcom reported results that highlighted continued momentum in AI semiconductors, with sales rising 86% year over year to $29.6 billion, slightly above analyst estimates of $29.43 billion, according to MarketBeat Ratings. The company said earnings per share increased 96% year over year to $3.32, beating expectations of $3.22.
Despite the beat, shares fell as much as 5% in after-hours trading, which MarketBeat Ratings attributed largely to Broadcom’s next-quarter sales guidance. The company forecast revenue of $34.8 billion, slightly below estimates of $35 billion, even as it surpassed its own AI semiconductor sales target of $16 billion.
Broadcom also provided sharper forward visibility into AI demand. The firm reported AI semiconductor segment revenue of $16.7 billion, up 221% year over year, and guided for $21.7 billion in sales next quarter, representing a 236% year over year increase.
For the longer runway, management raised its full-year AI semiconductor sales guidance to $58 billion, up from $56 billion, MarketBeat Ratings said. CEO Hock Tan outlined that Broadcom secured enough supply to generate $115 billion in annual AI semiconductor revenue in fiscal 2027, with additional planning for fiscal 2028 described in the earnings presentation.