Broadcom reported strong fiscal second‑quarter 2026 results, with revenue of $22.19 billion — slightly below the $22.27 billion consensus — and adjusted earnings per share of $2.44, beating expectations. Adjusted EBITDA rose 52% to $15.24 billion, exceeding the FactSet consensus. Revenue grew 48% year‑over‑year, driven by robust AI semiconductor performance, which surged 143% to $10.8 billion, while the broader semiconductor segment expanded 78.5%. The company projects third‑quarter revenue of about $29.4 billion, with AI semiconductor revenue expected to surpass $16 billion, potentially reaching $100 billion by fiscal 2027. Broadcom announced new long‑term agreements with Google, Anthropic, OpenAI, and Meta to supply custom TPU compute capacity, and is working with Apollo and Blackstone to provide debt financing for these sales. Although some investors reacted negatively to the earnings call, the firm maintains confidence in Broadcom’s growth trajectory and has raised its price target to $480 from $425, while retaining a rating of 2.
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