When will Broadcom report its earnings?
Broadcom is scheduled to announce its fiscal 2026 first quarter (Q1) financial results after the market closes on Wednesday, March 4th. The earnings conference call will begin at 5:00 p.m. Eastern Time (ET).
Record Q4 revenue and AI acceleration
Broadcom ended fiscal 2025 on a strong note, with fourth-quarter revenue reaching a record $18 billion, beating analyst expectations of $17.4 billion and increasing 28% year-over-year (year-over-year). Non-GAAP diluted earnings per share (EPS) of $1.95 exceeded the consensus estimate of $1.86. For the full fiscal year, consolidated revenue increased 24% to $64 billion, supported by two key growth pillars: artificial intelligence (AI) semiconductors and VMware.
AI semiconductor revenue soared to $6.5 billion in the quarter, up 74% year over year, and reached $20 billion for the full year. This is a 65% increase over the previous year and now accounts for more than half of total semiconductor revenue. Broadcom’s custom AI accelerators, known internally as XPUs, are attracting hyperscale customers. During the fourth quarter earnings call, CEO Hock Tan confirmed that the company had acquired its fifth XPU customer with an initial $1 billion in orders. He also revealed that a previously unnamed fourth customer, Anthropic, has placed an additional $11 billion in orders for delivery in late 2026, following a $10 billion order received in the third quarter. The AI backlog currently stands at $73 billion and is expected to be delivered within the next 18 months.
The Infrastructure Software segment had strong revenue of $10.4 billion in the fourth quarter, with revenue up 19% year-over-year to $6.9 billion, driven primarily by the 2023 acquisition of VMware. Software gross margin reached 93% and operating margin improved to 78%, reflecting strong adoption of VMware Cloud Foundation (VCF). Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in fiscal 2025 increased 35% to a record $43 billion, and free cash flow increased 39% year over year to $26.9 billion.
Despite the strong financial results, Broadcom stock fell sharply after the earnings announcement. The main driver of the decline was a margin warning from Chief Financial Officer Kirstin Spears, who said she expected first-quarter gross profit margins to fall by about 100 basis points (bp) quarter-over-quarter due to a high proportion of AI revenue. Investor concerns were compounded by the concentration of revenue among a limited number of hyperscale customers.
Q1 revenue trajectory maintained, but margin pressure increases
Analyst consensus reflects expectations for continued earnings momentum, primarily driven by continued expansion in the AI semiconductor segment. However, as FY26 progresses, we expect profitability to come under pressure as the contribution of low-margin full rack-scale AI solutions increases, putting pressure on overall margins.
Below are analyst forecasts based on LSEG data.
