Broadcom Reports Strong Q3 Results Amid Stock Decline
Broadcom (NASDAQ: AVGO) reported its fiscal Q3 2026 earnings on September 2, showing non-GAAP earnings per share of $3.32 and revenue of $29.59 billion, exceeding Wall Street expectations of $3.24 EPS on $29.36 billion in sales. However, the stock fell following the earnings report due to a weaker sales forecast of $34.8 billion for the current quarter, below analysts’ expectations of $35.03 billion.
Management highlighted that Anthropic is expected to surpass Alphabet as their largest XPU purchaser in 2027, with purchase estimates increasing from 1 gigawatt in 2026 to 5 gigawatts in 2027. Broadcom is also ramping up shipments to OpenAI, with expectations for its Jalapeno XPU chips to rise from 1.3 gigawatts in 2027 to 5 gigawatts in 2028. Despite market reactions, Broadcom’s demand outlook from AI customers remains robust, projecting adjusted EPS of over $30 in fiscal 2028, exceeding the average estimate of $25.
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