Broadcom’s $22.19 billion Q2 revenue and $2.44 EPS slightly topped estimates, but shares fell as AI-driven rally raised investor expectations.
Broadcom reported Q2 revenue of $22.19 billion, up 48% year-over-year and slightly above the $22.0 billion estimate. Adjusted EPS reached $2.44, beating the $2.40 consensus, while adjusted EBITDA rose 52% to $15.24 billion, or 69% of revenue.
AI semiconductor revenue surged 143% to $10.8 billion, exceeding forecasts, and the company guided Q3 AI revenue to $16.0 billion, a 200% year-over-year increase. However, overall Q3 revenue guidance of $29.4 billion, implying 84% growth, failed to impress investors after the stock’s recent rally from $289 to $479.
Shares fell over 3.8% as the modest beat disappointed traders anticipating a stronger upside surprise. The decline mirrored reactions to CrowdStrike’s earnings, while Palo Alto Networks also saw post-earnings volatility despite a larger beat.