Broadcom Q2 Revenue Up 48% to $22.2 B; Q3 Outlook Misses
AVGO•Broadcom reported Q2 revenue of $22.2 billion, up 48% year-on-year, with adjusted EPS of $2.44 matching forecasts and AI semiconductor sales surging 143% to $10.8 billion. For Q3, management guides revenue of $29.4 billion—below the $25 billion-$37.5 billion analyst range—prompting a 6% after-hours drop.
1. Q2 Financial Results
Broadcom posted Q2 revenue of $22.19 billion, a 48% increase year-on-year, and delivered adjusted earnings of $2.44 per share, in line with consensus as robust demand for semiconductors persisted.
2. Q3 Guidance and Market Reaction
The company forecast Q3 revenue of about $29.4 billion with non-GAAP operating income around 67% of sales and EBITDA near 68%, a projection that fell below the higher end of the $25 billion–$37.5 billion analyst range and triggered a 6% decline in after-hours trading.
3. AI Segment Performance
Semiconductor revenue from AI applications climbed to $10.8 billion in Q2—a 143% year-on-year jump—and is expected to exceed $16 billion in Q3 as customers accelerate investment in custom AI accelerators and networking solutions.
4. Partnerships and Outlook
Strategic multi-billion-dollar agreements with Anthropic, Meta and Alphabet fueled a 42% share price surge in April–May, contributing to a 39% year-to-date gain and underpinning strong retail investor bullishness on Broadcom’s AI-driven growth prospects.
