Broadcom Q1 Revenue Up 29%, $10.9B Buybacks and $22B Q2 Guide
Broadcom posted Q1 revenue of $19.3 billion, a 29% year-over-year increase, and returned $10.9 billion to shareholders via $3.1 billion in dividends and $7.8 billion in buybacks. Management guided Q2 revenue of $22.0 billion with 68% adjusted EBITDA, prompting Morgan Stanley to raise its price target.
1. Q1 Results
Broadcom’s Q1 revenue reached $19.3 billion, marking a 29% increase year-over-year and driving a 4.8% stock gain following the announcement.
2. Shareholder Returns
The company returned $10.9 billion to shareholders through $3.1 billion in cash dividends and $7.8 billion in share repurchases, reflecting its commitment to capital allocation.
3. Q2 Guidance
Management forecasted Q2 revenue of approximately $22.0 billion and an adjusted EBITDA margin of roughly 68%, topping prior consensus estimates and reinforcing growth expectations.
4. Analyst Reaction
Following the results, Morgan Stanley raised its price target, citing Broadcom’s guidance and an estimated $120 billion in AI chip revenue for fiscal 2027 that could drive upward revisions.