Key Takeaways
- Broadcom’s fiscal Q2 FY26 earnings announcement is scheduled for June 3 following market close
- Analyst consensus calls for $22.12 billion in revenue (47% YoY growth) and $2.40 earnings per share (52% YoY increase)
- The options market suggests a potential 10.65% price swing following the earnings release
- The company has surpassed Wall Street earnings projections for nine consecutive quarters
- Year-to-date, AVGO shares have climbed nearly 30%; the consensus price target among analysts stands at $480.04
Broadcom will unveil its second-quarter fiscal year results following the market close this Wednesday, June 3.
AVGO shares concluded the previous week at an unprecedented high, registering approximately 29% gains since the start of the year.
The options market is anticipating roughly a 10.65% movement in either direction after the earnings announcement. This projection significantly exceeds the stock’s typical 6.67% post-earnings fluctuation observed across the previous four quarters.
Should such a move materialize, AVGO could surge beyond $487 to establish a fresh record, or alternatively retreat toward the $406 level.
Wall Street Projections for Q2
For the second quarter of fiscal 2026, the Street consensus anticipates revenue reaching $22.12 billion, representing a 47% year-over-year expansion. On an adjusted basis, earnings per share are projected at $2.40, marking a 52% improvement compared to the prior-year period.
Broadcom has consistently exceeded analyst expectations across its last nine quarterly reports, providing investors with considerable confidence heading into this release.
UBS recently elevated its AVGO price objective to $490 from a previous $475 target. The investment bank noted that market participants will scrutinize management commentary regarding fresh custom AI chip deals.
Susquehanna’s Christopher Rolland similarly increased his price target to $490 from $450, maintaining his Buy recommendation on the shares.
Rolland anticipates robust quarterly performance fueled by sustained demand for artificial intelligence semiconductors and networking solutions. Nevertheless, he adjusted his fiscal 2026 AI revenue projection downward to approximately $55 billion from $62.5 billion, attributing the revision to tempered expectations surrounding a chip program associated with Anthropic.
Street Sentiment and Price Objectives
According to Visible Alpha data covering 11 analysts, 10 maintain Buy recommendations on AVGO, with one analyst holding a neutral stance. The collective price target averages $467, indicating approximately 5% potential appreciation from Friday’s closing price.
TipRanks presents comparable sentiment, reflecting 26 Buy ratings alongside four Hold recommendations issued during the past three months. Their aggregated price target of $480.04 suggests roughly 7.45% upside potential.
The TipRanks AI Analyst maintains an Outperform rating on AVGO with a $458 price objective. This assessment is supported by the company’s robust profit margins and impressive free cash flow generation, though technical indicators suggest the stock may be trading in overbought territory following its recent advance.
Market participants will closely monitor management’s discussion regarding Broadcom’s AI semiconductor roadmap, particularly any developments concerning custom chip partnerships with technology leaders including Alphabet and Meta.
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