what is the expectation from AVGO earnings today

Symbols

6/5/2025 07:19pm

Aime

The deep research logic is organized as follows: 

Okay, let's tackle the user's question about Broadcom's (AVGO) earnings expectations for today. First, I need to gather all the relevant data from the provided references. The user is asking specifically about what to expect from today's earnings report, so I should focus on the most recent and relevant information.

Looking at the references, there are several articles and data points from around June 2025. The key pieces of information include the estimated EPS and revenue, the consensus estimates, and any recent analyst upgrades or downgrades. 

From Reference 1, the estimate for EPS is $1.58 and revenue is $14.92 billion for Q2 2025. Reference 2 mentions that the Zacks Consensus Estimate for revenue is $14.92 billion, with a 19.5% YoY growth. The EPS consensus is $1.57, but there's a note that the estimate hasn't changed in 30 days. However, Reference 11 shows the consensus EPS as $1.58, which might be a slight discrepancy. I need to clarify this. 

Reference 6 provides the actual EPS and revenue for Q2 2025 as $1.6 and $14.92 billion, but the date is June 5, 2025, which is today. Wait, that's the actual data, but the user is asking about expectations before the earnings release. So maybe Reference 6 is the actual data, but the user is asking about the expectations leading up to today. 

Wait, the current time is 2025-06-05 15:19:34, so the earnings have already been released. But the user is asking about the expectations for today's earnings. So perhaps the actual data is in Reference 6, but the user is asking about the pre-earnings expectations. 

Looking back, Reference 1 has the estimate as of today, which is $1.58 EPS and $14.92 billion revenue. Reference 2 mentions the consensus as $14.92 billion revenue and $1.57 EPS, but notes that the EPS estimate hasn't changed in 30 days. Reference 7 mentions a consensus EPS of $1.57 and revenue of $14.96 billion. Reference 8 expects $1.57 EPS and $14.9 billion revenue. Reference 10 also mentions $1.57 EPS and $14.95 billion revenue. 

There's a slight variation in the revenue estimates between $14.9 billion and $14.96 billion, but the EPS seems consistent around $1.57. However, Reference 11 shows the consensus EPS as $1.58, which might be a more recent update. 

Also, Reference 15 provides historical data for Q2 2024: EPS of $4.42 and revenue of $12.49 billion. Wait, that doesn't make sense because the EPS for Q2 2024 is $4.42, which is much higher than the 2025 estimates. That must be a mistake. Wait, no, looking at Reference 15, the columns are Diluted EPS 2025 Q2 vs 2024 Q2. But the data shows Diluted EPS 2025 Q2 as empty and 2024 Q2 as $4.42. That can't be right because the actual Q2 2025 EPS is $1.6 according to Reference 6. Maybe there's a mix-up in the data. 

Wait, Reference 6 shows Actual EPS as $1.6 and revenue as $14.92 billion for Q2 2025, which is today's date. So the user is asking about the expectations leading up to today's earnings, but the actual data is already available. However, the user's question is about the expectations, so I should focus on the pre-earnings estimates. 

Putting it all together, the consensus estimates leading up to today were around $1.57 EPS and $14.92 billion revenue. However, some sources like Reference 1 and 11 mention $1.58 EPS. There's also a note in Reference 2 that the EPS estimate hasn't changed in 30 days, which might indicate stability in the consensus. 

Additionally, the articles mention that Broadcom has beaten estimates in the past, with an average surprise of 3.44% over the trailing four quarters. This suggests a high likelihood of an earnings beat. The revenue breakdown into AI and infrastructure software segments is also important, with AI revenue expected to grow 44% YoY to $4.1 billion and infrastructure software to $6.5 billion. 

The user's question is about the expectations, so I need to present the consensus estimates, the likelihood of a beat, and the key segments driving the results. Also, the price target upgrades from analysts like Citi and Redburn-Atlantic should be mentioned as they indicate confidence in the stock's future performance. 

I should structure the answer with a conclusion first, then detailed analysis, including tables for clarity. Make sure to cite the references properly and include the visualization as per the requirements. Also, check if there are any discrepancies in the data and address them, but since the user is asking about expectations, focus on the pre-earnings data.

Conclusion 🎯

Broadcom (AVGO) is expected to deliver strong earnings growth in its fiscal Q2 2025 report, with consensus estimates pointing to $1.57 EPS and $14.92 billion in revenue ¹². Analysts project 43% YoY EPS growth and 19.5% YoY revenue growth, driven by AI-related revenue surging 44% YoY ²⁴. The stock has a high likelihood of beating estimates (average 3.44% surprise over the past four quarters) ², supported by upgrades from Citi ($276 PT) and Redburn-Atlantic ($301 PT) ⁵⁶. Let’s dive into the details.

Analysis

1. Earnings Estimates

Metric	Consensus Estimate	YoY Growth	Key Drivers
EPS	$1.57	+43%	AI segment growth (77% YoY in Q1, 44% YoY in Q2) ²⁴
Revenue	$14.92B	+19.5%	AI ($4.1B, +44% YoY), Infrastructure Software ($6.5B, +23% YoY) ²⁴
AI Revenue	$4.1B	+44%	Hyperscaler investments in data centers ²⁴
Infrastructure Software	$6.5B	+23%	VMware subscription shift (60% completed) ²

2. Key Catalysts

AI Dominance: Broadcom’s AI revenue is expected to account for 27% of total revenue in Q2, up from 21% in Q1 ⁴. Hyperscalers like Meta and Alphabet are driving demand for custom AI accelerators ²⁶.
VMware Integration: Infrastructure Software revenue (60% subscription-based) is projected to grow 23% YoY, with VMware bookings exceeding $3B ².
Margin Expansion: Gross margins are expected to remain stable (~68%), supported by high-margin AI and software segments ⁷⁴.

3. Risks & Concerns

Tariff Risks: Broadcom faces potential tariffs on Chinese imports, though a temporary truce with the U.S. may alleviate pressure ⁴.
Competition: NVIDIA’s dominance in AI chips could limit Broadcom’s market share ⁷.
Valuation: The stock trades at 27.7x EV/EBITDA ⁸, raising concerns about overvaluation despite strong fundamentals.

4. Analyst Take

Citi: Upgraded price target to $276 (11% upside), citing AI-driven growth ⁵.
Redburn-Atlantic: Initiated coverage with a $301 PT, highlighting Broadcom’s ASIC leadership ⁶.
JPMorgan: Maintained “Overweight” rating, expecting Q3 guidance to reflect AI strength ⁹.

Final Takeaway 🎯

Broadcom’s Q2 earnings are poised to exceed expectations, with AI and VMware driving 27% YoY revenue growth in high-margin segments. The stock’s $261.52 price reflects bullish sentiment (87% YoY rally) ¹⁰, but risks like tariffs and competition remain. Investors should watch for AI revenue upside and VMware subscription progress in the earnings call.

Source:

1. AVGO Estimate EPS, Estimate Revenue in Fiscal 2025 Q2 Today