Post-Q1 financials: AI growth beat, Q2 guide + $10B buyback + 14th div hike paid May7 + PT consensus $435-480/WS $472.50 cons/95% Buy + Jefferies $500 + GuruFocus bearish DCF + Seeking Alpha A/A- growth grades + SA $788 PT/0.5x PEG + Zacks #1 Strong Buy/EPS revs + 77% gross margins > peers + Zacks FY26 costs ~11% client incentives + stock rebound from $293/$314 dips + TSM comps + Simply Wall St $480 FV + Morningstar $500 + analysts chasing targets/Truist $545/JPM $500 + PE 34x debate + new CFO Thuener confirmed June12 + Spears retires + China tariff risks + Zacks buy-the-dip from 9% YTD slip
Key Questions
What were Broadcom's Q1 financial results?
Q1 revenue hit $19.31B (+29% YoY), with semiconductors at $12.52B (+52%) and AI at $8.4B (+106%); EPS was $2.05 (+28%), with 77% gross margins exceeding peers. This beat expectations amid AI growth. Zacks notes FY26 costs at ~11% for client incentives.
What is Broadcom's guidance for Q2?
Q2 guidance projects $22B revenue (+47% YoY), including $10.7B from AI, reported June 4, 2026. FY26 outlook is $105B revenue and 11.3 EPS (Zacks #1 Strong Buy). This reflects continued AI momentum.
What shareholder returns did Broadcom announce post-Q1?
Broadcom authorized a $10B buyback and its 14th consecutive dividend hike, payable May 7. These moves signal confidence in AI growth. Stock rebounded +6% to $334 from $293/$314 dips.
What is the analyst consensus and price targets for Broadcom stock?
Consensus PT is $435-480 (WS $472.50), with 95% Buy ratings (47/49); Jefferies at $500, Truist $545, JPM $500, Simply Wall St $480 FV, Morningstar $500. Seeking Alpha gives A/A- growth grades, $788 PT at 0.5x PEG. Zacks #1 Strong Buy with EPS revisions.
How has Broadcom's stock performed recently?
Stock rebounded +6% to $334 post-Q1, despite YTD -9.55% and dips to $293/$314; down 5.5% since last earnings but up on AI surge. Analysts chase higher targets amid 21.8x fwd P/E GARP debate. TSM comps and 77% margins support valuation.
Who is Broadcom's new CFO and when is confirmation?
Kirsten Thuener, formerly Alphabet's top accounting leader, is confirmed as CFO effective June 12. This follows Mark Spears' retirement. The move highlights Broadcom's focus on financial expertise amid AI expansion.
What risks are mentioned for Broadcom?
Risks include China tariff headwinds, geopolitical tensions, Q2 guide scrutiny, and Erste software concerns; GuruFocus bearish DCF notes. Bears flag 'priced for perfection' AI growth and potential corrections. PE 34x debate persists.
How does Broadcom compare to peers in growth and margins?
Broadcom shows 77% gross margins > peers, AI +106% QoQ, semis +52%; Seeking Alpha A/A- grades, 0.5x PEG. Zacks FY26 #1 Strong Buy vs. TSM comps. Analysts highlight $3T market cap potential via AI dominance.
Q1 $19.31B (+29%, $8.4B AI +106%), semis $12.52B +52%, EPS $2.05 +28%, margins 77%; Q2 $22B (+47%, $10.7B AI) June4; FY26 $105B/11.3 EPS (Zacks #1), $10B buyback/div hike; PT cons $471 (47/49 Buy); stock $333.97 +6.21% rebound (YTD -3.5%); Zacks buy-dip on 9% slip to $314; bears flag tariffs/Q2/Erste software; fwd P/E 21.8 GARP/0.5x PEG; Thuener CFO confirmed.