Broadcom beats Q2 earnings but stock falls 12.85% after AI revenue guidance unchanged at 'in excess of $100 billion'

Broadcom reported Q2 FY2026 non-GAAP EPS of $2.44 (beating $2.40 consensus) on revenue of $22.187 billion, up 48% year-over-year. AI semiconductor revenue hit a record $10.8 billion, up 143% year-over-year.

CEO Hock Tan reiterated full-year AI chip revenue guidance of 'in excess of $100 billion' without raising the target. Six core custom chip customers—including Anthropic, Google, Meta, and OpenAI—are driving AI revenue growth.

Q3 FY2026 revenue guidance came in at approximately $29.4 billion, up 84% year-over-year. Infrastructure software revenue of $7.18 billion fell short of the $7.32 billion analyst estimate.