AVGO's Symantec CBX Expands Security Portfolio: Revenues to Surge?

Broadcom’s AVGO Infrastructure Software revenues climbed 1% year over year to $6.8 billion in the first quarter of fiscal 2026. Infrastructure Software revenues accounted for 35.2% of net revenues that appreciated 29.5% year over year to $19.31 billion. VMware revenues grew 13% year over year. Bookings continue to be strong, and total contract value booked in the fiscal first quarter exceeded $9.2 billion. Infrastructure Software benefits from a strong security portfolio and the growing adoption of VMware Cloud Foundation (VCF).

AVGO’s Symantec and Carbon Black endpoint security solutions are designed to prevent, detect and respond to emerging threats across all devices and operating systems. The company recently introduced Symantec CBX (Carbon Black XDR), a cloud-based platform that combines the best Symantec and Carbon Black technologies in one intuitive solution. CBX combines Symantec’s robust prevention, Adaptive Protection, Data Security, Cloud SWG and Incident Prediction features with Carbon Black’s EDR technology for deep visibility, exceptional threat detection and rapid response across attack surfaces.

Meanwhile, VCF has become the essential software layer in data centers, integrating CPUs, GPUs, storage and networking into a common high-performance private cloud environment. VCF allows enterprises to scale complex generative AI (Gen AI) workloads effectively with the agility that hardware alone cannot provide. AVGO expects demand for VMware to increase, driven by the growing deployment of AI and Gen AI.

Broadcom expects Infrastructure Software revenues to be approximately $7.2 billion, up 9% year over year. AVGO expects revenues of $22 billion, indicating 47% year-over-year growth for the second quarter of fiscal 2026. The Zacks Consensus Estimate for revenues is currently pegged at $22.02 billion, suggesting 46.8% growth from the figure reported in the year-ago quarter.

AVGO Faces Tough Competition in the Security Space

Broadcom is facing stiff competition from CrowdStrike CRWD and Palo Alto Networks PANW in the enterprise security space.

CrowdStrike benefits from the rising demand for cybersecurity solutions due to a slew of data breaches and the increasing need for secure networking products amid the growing hybrid working trend. The company’s portfolio strength, mainly the Falcon platform’s 29 cloud modules, boosts CrowdStrike’s competitive edge and helps add users. For fiscal 2027, CrowdStrike now expects revenues between $5.87 billion and $5.93 billion.

Palo Alto Networks offers solutions for network security, cloud security and endpoint solutions for customers who need full enterprise security support. Its next-generation firewalls and advanced threat detection technologies are widely recognized and adopted globally. Palo Alto Networks’ wide range of innovative products, strong customer base and growing opportunities in areas like Zero Trust, Secure Access Service Edge (SASE) and private 5G security continue to support its long-term growth potential. For fiscal 2026, Palo Alto Networks expects revenues in the range of $11.28 billion to $11.31 billion, suggesting year-over-year growth of 22-23%.

AVGO’s Share Price Performance, Valuation & Estimates

Broadcom shares have dropped 6.8% year to date, underperforming the broader Zacks Computer and Technology sector’s plunge of 6.3%.

AVGO Stock Outperforms Sector

Image Source: Zacks Investment Research

The AVGO stock is trading at a premium, with a forward 12-month price/sales of 12.77X compared with the broader sector’s 5.84X. Broadcom has a Value Score of D.

AVGO Stock Has a Stretched Valuation

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for the second quarter of fiscal 2026 earnings is pegged at $2.35 per share, up 7.8% over the past 30 days, suggesting 48.7% growth from the figure reported in the year-ago quarter.

Broadcom Inc. Price and Consensus

Broadcom Inc. price-consensus-chart | Broadcom Inc. Quote

Broadcom currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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