Broadcom (NASDAQ:AVGO) Posts Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Broadcom's earnings for the quarter were reported at $1.26 per share, missing the consensus estimate of $1.66 by $0.40.
• Despite the earnings miss, Broadcom's stock rose 1.2% on the day, reaching $306.10 with significant trading volume.
• The company received several analyst upgrades, with Piper Sandler raising its target price from $300 to $315 and maintaining an "overweight" rating.

Broadcom (NASDAQ:AVGO - Get Free Report) released its quarterly earnings results on Thursday. The semiconductor manufacturer reported $1.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.66 by $0.03, Briefing.com reports. The business had revenue of $15.95 billion for the quarter, compared to analyst estimates of $15.82 billion. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The firm's revenue was up 22.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.24 earnings per share. Broadcom updated its Q4 2025 guidance to EPS.

Broadcom Stock Performance

NASDAQ AVGO opened at $306.10 on Friday. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.08 and a quick ratio of 0.98. The firm has a market capitalization of $1.44 trillion, a price-to-earnings ratio of 114.64, a P/E/G ratio of 2.15 and a beta of 1.16. The company's fifty day moving average is $290.78 and its two-hundred day moving average is $236.51. Broadcom has a 52-week low of $134.90 and a 52-week high of $317.35.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 22nd will be given a $0.59 dividend. This represents a $2.36 annualized dividend and a yield of 0.8%. Broadcom's dividend payout ratio is 88.39%.

Analyst Ratings Changes

Several research analysts have recently commented on AVGO shares. Cowen restated a "buy" rating on shares of Broadcom in a research note on Friday, June 6th. Rosenblatt Securities increased their price target on shares of Broadcom from $223.00 to $340.00 and gave the stock a "buy" rating in a research note on Friday, June 6th. Susquehanna increased their price target on shares of Broadcom from $280.00 to $300.00 and gave the stock a "positive" rating in a research note on Friday, June 6th. Barclays increased their price target on shares of Broadcom from $215.00 to $265.00 and gave the stock an "overweight" rating in a research note on Monday, June 9th. Finally, Erste Group Bank upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a research note on Thursday, June 5th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus price target of $304.17.

Insider Buying and Selling

In other Broadcom news, Director Gayla J. Delly sold 3,000 shares of the firm's stock in a transaction on Thursday, June 26th. The shares were sold at an average price of $265.13, for a total value of $795,390.00. Following the sale, the director directly owned 33,352 shares in the company, valued at $8,842,615.76. This trade represents a 8.25% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Kirsten M. Spears sold 36,350 shares of the firm's stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $261.27, for a total transaction of $9,497,164.50. Following the transaction, the chief financial officer directly owned 325,587 shares of the company's stock, valued at $85,066,115.49. The trade was a 10.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 830,516 shares of company stock worth $217,286,457. 2.00% of the stock is currently owned by corporate insiders.

Institutional Trading of Broadcom

Institutional investors have recently made changes to their positions in the business. Rafferty Asset Management LLC boosted its position in Broadcom by 17.5% in the second quarter. Rafferty Asset Management LLC now owns 3,789,877 shares of the semiconductor manufacturer's stock valued at $1,044,680,000 after buying an additional 564,789 shares in the last quarter. Situational Awareness LP boosted its position in Broadcom by 70.2% in the second quarter. Situational Awareness LP now owns 1,191,606 shares of the semiconductor manufacturer's stock valued at $328,466,000 after buying an additional 491,606 shares in the last quarter. Select Equity Group L.P. boosted its position in Broadcom by 1,445.1% in the second quarter. Select Equity Group L.P. now owns 360,274 shares of the semiconductor manufacturer's stock valued at $99,310,000 after buying an additional 336,957 shares in the last quarter. CANADA LIFE ASSURANCE Co boosted its position in Broadcom by 3.9% in the second quarter. CANADA LIFE ASSURANCE Co now owns 4,084,164 shares of the semiconductor manufacturer's stock valued at $1,127,537,000 after buying an additional 154,038 shares in the last quarter. Finally, Corient Private Wealth LLC boosted its position in Broadcom by 2.9% in the second quarter. Corient Private Wealth LLC now owns 3,876,733 shares of the semiconductor manufacturer's stock valued at $1,070,201,000 after buying an additional 108,029 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Broadcom Company Profile

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.