Broadcom's stock slid 5% in extended trading on Wednesday, as the chipmaker's tepid guidance for the current quarter overshadowed its better-than-expected earnings report. The company's results were weighed against Wall Street forecasts compiled by the London Stock Exchange Group (LSEG).
On an adjusted basis, Broadcom posted earnings per share of $3.32, topping the consensus estimate of $3.24. Revenue for the fiscal third quarter came in at $29.59 billion, slightly ahead of the anticipated $29.36 billion.
Looking ahead, Broadcom guided for fiscal fourth-quarter revenue of $34.8 billion, which trailed the analyst target of $35.03 billion, according to LSEG data. The company's quarterly revenue surged 86% year-over-year to $29.59 billion, up from $15.95 billion in the same period last year, as detailed in a company statement.
Net income more than tripled to $13.09 billion, or $2.68 per share, compared with $4.14 billion, or 85 cents per share, in the year-ago quarter.
Broadcom has emerged as a major beneficiary of the artificial intelligence boom, designing custom chips for tech giants including Google, Meta, and OpenAI. Since late 2022, as ChatGPT and other generative AI services took off, the stock has climbed more than sixfold, pushing its market capitalization to roughly $1.8 trillion.
However, the shares have lagged the broader market this year. Through Wednesday's close, Broadcom was up about 6% in 2026, compared with a 12% gain for the S&P 500 over the same stretch.
During the quarter, Broadcom highlighted its custom Jalapeno chip developed jointly with OpenAI, while Apple announced plans to deepen its collaboration with Broadcom on U.S.-based chip production.
Semiconductor revenue more than doubled to $16.7 billion, beating the average estimate of $15.2 billion, according to StreetAccount. Infrastructure software revenue came in at $8.75 billion, slightly below the consensus figure of $8.82 billion from StreetAccount's analyst survey.
Executives are scheduled to host a conference call with analysts at 5:00 p.m. Eastern Time to discuss the results.