Broadcom's earnings call sees 'messy start' as CEO Hock Tan begins by reading numbers from a piece of paper that...
Broadcom’s Q2 FY2026 earnings call began with CEO Hock Tan misreading prior-year figures before correcting them. The company reported total revenue of $22.2 billion (up 48% YoY) and EPS of $2.44, beating consensus ($22.13B revenue, $2.39 EPS). Broadcom did not raise guidance: it expects $56B AI chip sales in FY2026 (vs $57.6B est.) and $16B next-quarter AI sales (vs $17.2B).
Earnings beat on revenue/EPS was outweighed by guidance/AI chip sales shortfall, driving a sharp premarket selloff.
Broadcom reported fiscal Q2 revenue of $22.2B and EPS $2.44, but did not raise guidance; AI chip sales outlook missed expectations.
Bearish near-term bias; focus on whether AI backlog recognition and next-quarter AI chip guidance can re-accelerate.
Background
Broadcom’s FY2026 Q2 earnings call included CEO commentary on AI semiconductor momentum and guidance, alongside a reported “messy start” before correcting figures.
Why it matters
Despite beating consensus on revenue and EPS, the company did not raise guidance; AI chip sales forecasts for FY2026 and next quarter were below Wall Street expectations, contributing to a large market-cap wipeout.
Market relevance
Traders should treat this as an AI-semi guidance sensitivity event: even with strong growth, missing AI chip sales expectations and no guidance raise can trigger outsized downside.
Market effects
Reinforces that AI semiconductor demand is strong but valuation is sensitive to incremental guidance and quarterly revenue recognition timing.
Primarily US large-cap semiconductor sentiment; could spill into AI infrastructure/semis in early trading.
AI chip demand narrative remains intact globally, but guidance deltas can quickly reset expectations across the supply chain.
Alternative perspectives
The article frames the move as a sentiment reset: Broadcom still shows ~50% revenue growth and accelerating AI revenue, so the selloff may be overdone versus fundamentals.
Investors may be discounting how much of signed AI-related deals converts to quarterly revenue versus multiyear backlog; that accounting/recognition path could matter more than headline growth rates.
Key entities
- CEOHock Tan
Broadcom CEO who reiterated AI semiconductor momentum and provided AI chip sales guidance that came in below consensus.
- CompanyBroadcom
Reported fiscal Q2 results and AI chip sales guidance; shares fell sharply premarket on the guidance shortfall.
