Quick Summary
- Broadcom (AVGO) releases Q1 fiscal year 2026 earnings on Wednesday, March 4, 2026
- Analyst consensus calls for $19.21 billion in revenue, representing 29% annual growth
- Earnings per share projected at $2.02, a 26% increase year-over-year; the company has exceeded forecasts for nine consecutive quarters
- AI semiconductor revenue anticipated to hit $8.2 billion for the quarter, marking a year-over-year doubling
- UBS maintains Buy rating with $475 target; overall analyst sentiment shows Strong Buy consensus at $452.32 average target
Broadcom will unveil its Q1 FY2026 financial performance on Wednesday, March 4, 2026. The upcoming announcement arrives amid elevated expectations from the investment community and several critical metrics to monitor.
Wall Street forecasts call for quarterly revenue reaching $19.21 billion, marking a substantial 29% increase versus the comparable quarter from the previous year.
Regarding profitability metrics, the Street consensus stands at $2.02 earnings per share, representing 26% growth year-over-year. The company has surpassed analyst projections in every quarter for the last nine reporting periods, establishing a pattern of outperformance.
AVGO stock has surged 60% during the trailing twelve months, propelled primarily by robust appetite for its specialized artificial intelligence processors. However, shares have retreated approximately 8% since the calendar year began.
Options traders are anticipating an 8.64% price swing following the earnings announcement, signaling considerable uncertainty surrounding the upcoming release.
Artificial Intelligence Semiconductor Division Takes Center Stage
The company’s AI chip segment is projected to generate approximately $8.2 billion in quarterly revenue, essentially doubling the figures from the year-ago period. This expansion stems from major technology enterprises scaling their data center infrastructure.
On February 26, Broadcom announced that its latest AI processor utilizing advanced stacking architecture is anticipated to see exceptionally robust demand. According to Reuters reporting, shipment volumes could exceed one million units by 2027.
The semiconductor maker has also begun delivering its inaugural 2-nanometer custom compute system-on-chip, manufactured using its 3.5D eXtreme Dimension System in Package technology platform. According to Broadcom, this architecture delivers enhanced power efficiency and reduced latency for artificial intelligence computing clusters.
This represents a significant technological advancement. Reduced node dimensions typically enable greater computational capability while consuming less power—a critical factor for large-scale AI infrastructure deployments.
VMware Software Division Draws Scrutiny
While the semiconductor operations appear robust, market analysts are paying particular attention to Broadcom’s infrastructure software business, which expanded considerably following the VMware transaction.
UBS analyst Timothy Arcuri maintained his Buy recommendation before the earnings release, establishing a $475 price objective. He indicated that recent share price pressure seems connected to compressed valuation multiples throughout the software sector rather than fundamental challenges in Broadcom’s chip operations.
Arcuri identified several potential headwinds in the software business, including possible customer defection at VMware as agreements approach renewal deadlines.
He further noted concerns about decelerating growth following recent upgrade waves and the emergence of AI-powered coding solutions that might migrate additional computing tasks to cloud platforms.
The analyst community maintains overwhelmingly bullish sentiment on the equity. Among 30 analyst assessments issued during the most recent three-month period, 28 recommend Buy, two suggest Hold, and none advise Sell.
The consensus price objective across these analysts stands at $452.32, suggesting approximately 41.5% potential appreciation from present trading levels.
Broadcom commences distribution of its 2nm custom system-on-chip as it approaches the March 4 quarterly report.
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