Broadcom Stock Drops Following Weak Revenue Guidance Despite Earnings Beat
Broadcom shares fell by 5% in extended trading after the chipmaker issued weaker-than-expected revenue guidance for its fiscal fourth quarter, despite reporting better-than-forecast earnings and revenue. The company reported $29.59 billion in revenue and adjusted EPS of $3.32 for Q3 FY2026, surpassing estimates. However, it projected $34.8 billion in revenue for the next quarter, below analysts' expectations of $35.03 billion. The stock has surged over sixfold since late 2022 due to its role in AI chip development but has underperformed broader markets this year. Broadcom highlighted new business from Apple and OpenAI during the period, including a custom chip developed with OpenAI.
Topics: ai chips broadcom revenue guidance stock performance