Broadcom Q2 Earnings: Revenue, EPS Beat Estimates Driven By 'Robust Demand' For AI Networking, Company Sees Acceleration In AI Revenue Ahead

Broadcom Inc AVGO reported second-quarter financial results after the market close on Thursday. Here’s a rundown of the chipmaker’s report.

Q2 Earnings: Broadcom reported second-quarter revenue of $15 billion, beating analyst estimates of $14.99 billion, according to Benzinga Pro. The semiconductor company reported second-quarter adjusted earnings of $1.58 per share, beating analyst estimates of $1.56 per share.

Total revenue was up 20% on a year-over-year basis, driven by continued momentum in AI semiconductor solutions and VMware. Broadcom generated approximately $6.56 billion in cash from operations and $6.41 billion in free cash flow during the quarter. The company ended the quarter with approximately $9.47 billion in cash and cash equivalents.

“Q2 AI revenue grew 46% year-over-year to over $4.4 billion, driven by robust demand for AI networking. We expect growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3, delivering ten consecutive quarters of growth, as our hyperscale partners continue to invest,” said Hock Tan, president and CEO of Broadcom.

Broadcom's board approved a quarterly cash dividend of 59 cents per share, payable on June 30 to shareholders of record as of June 20.

Guidance: Broadcom expects third-quarter revenue of approximately $15.8 billion, versus estimates of $15.79 billion. The company anticipates third-quarter adjusted EBITDA of at least 66% of projected revenue.

Broadcom’s management team will further discuss the quarter on a call with investors and analysts at 5 p.m. ET.

AVGO Price Action: Broadcom shares were down 1.76% in Thursday’s after-hours session, trading at $255.35 at the time of publication, according to Benzinga Pro.

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