Broadcom Shares Fall 5% Despite Q3 Earnings Beat Amid Disappointing Outlook

Broadcom shares declined 5% in after-hours trading on Wednesday, even though the chip manufacturer surpassed Wall Street expectations for the quarter, after providing a cautious revenue forecast for the current period.

Here’s how the company performed relative to LSEG consensus estimates:

• Adjusted earnings per share: $3.32 vs. $3.24 projected
• Revenue: $29.59 billion vs. $29.36 billion projected

For the fiscal fourth quarter, Broadcom anticipates revenue of $34.8 billion, falling short of the $35.03 billion analyst forecast, according to LSEG data.

The company’s revenue surged 86% during the quarter to $29.59 billion, up from $15.95 billion in the same period last year. Net income jumped to $13.09 billion, or $2.68 per share, more than tripling from $4.14 billion, or 85 cents per share, a year earlier.

Broadcom has emerged as a significant beneficiary of the artificial intelligence explosion, producing custom semiconductors for major technology firms including Google, Meta, and OpenAI. The company’s stock price has climbed more than sixfold since the end of 2022, coinciding with the rise of ChatGPT and other generative AI platforms, lifting its market capitalization to approximately $1.8 trillion.

Nevertheless, the shares have underperformed the broader market this year. As of Wednesday’s market close, Broadcom had gained approximately 6% in 2026, while the S&P 500 index advanced 12% during the same timeframe.

During the quarter, Broadcom showcased its custom Jalapeno chip developed in partnership with OpenAI, while Apple announced plans to increase its spending with Broadcom for domestic chip production.

Semiconductor revenue more than tripled to $16.7 billion, surpassing the $15.2 billion average estimate, according to StreetAccount. The company generated $8.75 billion from infrastructure software, slightly below the $8.82 billion analyst consensus compiled by StreetAccount.

Executives are scheduled to address analyst questions during a conference call at 5 p.m. ET.

This is developing news. Check back for additional updates.

WATCH: What to expect from Broadcom’s Q3

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