Broadcom Forecasts 29.2% Revenue Growth to $19.1 B, AI Revenues to Double
Broadcom expects Q1 fiscal 2026 revenues of $19.1 billion, a 29.2% increase year over year, with AI revenues set to double to $8.2 billion. The company forecasts semiconductor revenues of $12.3 billion (up 50%), infrastructure software at $6.8 billion, but warns of unfavorable AI mix and higher taxes.
1. First-Quarter Fiscal 2026 Guidance
Broadcom projects Q1 fiscal 2026 revenues of $19.1 billion, up 29.2% year over year, and consensus EPS of $2.03, reflecting 27% growth. These figures compare with a Zacks consensus revenue estimate of $19.27 billion, while trailing four-quarter earnings surprises averaged 3.35%.
2. Strong AI Segment Growth
AI-related revenues are expected to surge to $8.2 billion, driven by demand for custom XPUs and application-specific integrated circuits. The company’s AI switch order backlog exceeds $10 billion as its 102-terabit-per-second Tomahawk 6 and Jericho 4 products gain traction among hyperscale partners.
3. Segment Outlook and Headwinds
Semiconductor revenues are forecast at $12.3 billion, a 50% increase, while infrastructure software is projected at $6.8 billion. However, non-AI semiconductor revenues may be flat year over year at $4.1 billion and decline sequentially, and a higher global minimum tax rate will increase the company’s tax burden.
4. Valuation and Performance Metrics
Shares have risen 70.5% over the past 12 months, outperforming peers and the broader technology sector. Forward P/E stands at 27.67x, above sector and select competitor multiples, and a Value Score of D suggests stretched valuation ahead of earnings.