Summary
• Broadcom Inc. reported a 1.3% increase in stock price amid strong Q4 results, with revenues up 28% year-over-year to $18 billion.
• The company achieved a GAAP net income of $8.5 billion and raised its quarterly dividend by 10% to $0.65 per share.
• For Q1 FY 2026, Broadcom forecasts approximately $19.1 billion in revenue, leading analysts to maintain a “Buy” rating.
Broadcom Inc. (AVGO) is trading at $344.37, reflecting a 1.3% increase during intraday trading. The stock is gaining traction following its recent financial disclosures, marking a significant uptick from its previous close.
Earnings Momentum Fuels Market Interest
On December 11, Broadcom reported robust Q4 and fiscal year 2025 financial results, showcasing a noteworthy revenue increase of 28% year-over-year to approximately $18 billion. The company achieved a GAAP net income of $8.5 billion and a non-GAAP net income of about $9.7 billion for the quarter. Adjusted EBITDA was also strong, reaching $12.2 billion, equivalent to 68% of revenue.
Additionally, Broadcom’s GAAP diluted EPS finished at $1.74, with its non-GAAP diluted EPS coming in at $1.95, surpassing analysts’ expectations of $1.87, yielding a surprise of around 4%. Interestingly, operational cash flow measured at $7.7 billion, leading to a free cash flow of $7.5 billion or 41% of revenue. The company also announced a 10% increase in its quarterly dividend to $0.65 per share, further signaling its strong financial health.
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Guidance and Analyst Ratings Support Outlook
For the first quarter of fiscal year 2026, Broadcom set a revenue guidance of approximately $19.1 billion, representing an expected rise of 28% year-over-year. This optimistic forecast, along with solid historical performance, has prompted analysts to maintain a “Buy” rating on the stock.
The stock has received favorable ratings from key analysts, with projections reflecting price targets up to $475. Analysts from firms like UBS and Bank of America Securities have confirmed their support for Broadcom’s growth trajectory, indicating confidence in its market positioning.
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Market and Technical Picture
Broadcom’s stock performance has seen volatility, with a weekly loss of approximately 15% and a quarterly decline of about 6%. However, the annual performance remains impressive, boasting an increase of nearly 98%. The stock’s 14-day RSI is currently at 38.4, indicating it may be approaching oversold levels. Average trading volume over the last 10 days stands at around 45.9 million shares, well above its 3-month average of about 23.6 million, suggesting heightened investor interest.
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Recent Regulatory Filings
Broadcom filed an 8-K on December 11 related to its financial results, including the announced increase in its quarterly dividend. This regulatory compliance reflects the company’s commitment to transparency and providing timely updates to its investors.
With a solid financial performance from recent quarters, Broadcom appears poised for continued investor interest. The burgeoning guidance for the next fiscal quarter suggests that the company is on a robust growth path moving forward.