Why we're raising our price target on Broadcom despite its post-earnings sell-off

Key points

• Broadcom posted strong quarterly results after the bell on Wednesday, but didn't provide enough upside to its guidance to move the stock higher.
• Revenue in the fiscal second quarter of 2026, which ended May 3, was $22.19 billion, a slight miss versus the $22.27 billion consensus forecast, according to estimates compiled by LSEG.
• On an annual basis, revenue rose 48%.
• Adjusted earnings per share (EPS) increased 54% to $2.44, beating expectations of $2.40, LSEG data showed.
• Adjusted EBITDA grew 52% to $15.24 billion in the quarter, beating the FactSet consensus of $15.06 billion.