Broadcom Q1 Revenue Up 29% to $19.3B; Q2 Guide $22B, Target Raised
Broadcom’s Q1 revenue rose 29% year-over-year to a record $19.3 billion, with $10.9 billion returned to shareholders through $3.1 billion in dividends and $7.8 billion in buybacks. The company guided Q2 revenue at $22 billion with a 68% EBITDA margin and Morgan Stanley raised its price target, citing potential $120 billion AI chip sales in FY2027.
1. Q1 Results
Broadcom posted Q1 revenue of $19.3 billion, a 29% increase year-over-year, marking its highest quarterly sales to date. The company returned $10.9 billion to shareholders through $3.1 billion in cash dividends and $7.8 billion in stock repurchases.
2. Q2 Guidance and Margin Outlook
For Q2, Broadcom set revenue guidance at approximately $22.0 billion and projected adjusted EBITDA of around 68% of revenue, underlining robust margin expectations despite market volatility.
3. Analyst Update and AI Chip Forecast
Morgan Stanley responded to the results by raising its price target on Broadcom stock, citing strong cash returns and optimistic outlook. The firm highlighted potential for fiscal 2027 AI chip revenue to exceed $120 billion, suggesting upward revisions to long-term estimates.