Broadcom Set to Report Q3 Earnings Amid Robust AI Demand

Broadcom is set to report its third-quarter fiscal 2026 results on September 2. The company expects revenues of approximately $29.4 billion, indicating an 84% year-over-year growth.

The Zacks Consensus Estimate for revenues is pegged at $29.47 billion, suggesting a growth of 84.74% from the previous quarter's reported figure. The consensus mark for earnings has been unchanged at $3.22 per share over the past 30 days, indicating a 90.53% growth from the year-ago quarter.

The company's non-AI semiconductor business is also expected to have contributed to fiscal third-quarter growth as cyclical conditions improve. Broadcom expects consolidated gross margin to decline to about 74%, despite strong operating leverage.

AVGO shares have rallied 7% year-to-date (YTD), underperforming the broader Zacks Computer and Technology sector's return of 17.1%. The company has a long-term agreement with Google to develop and supply multiple generations of TPUs and AI networking products, which is expected to continue driving Broadcom's AI momentum.

The company expects fiscal 2026 AI semiconductor revenues of $56 billion, up approximately 180% year-over-year, and continues to forecast more than $100 billion in fiscal 2027. Management also expects AI demand to remain strong into fiscal 2028, supported by accelerating compute-capacity requirements and increasing Broadcom content per gigawatt across successive XPU generations.

Broadcom currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a favorable entry point to accumulate the stock.