Broadcom Q3 Earnings Preview: Revenue, EPS Expectations, and Stock Performance

Broadcom is set to report Q3 2025 earnings on September 4. Analysts expect EPS of $1.66, up 34% YoY, and revenue of $15.8 billion, a 21% increase. Piper Sandler raised its price target to $315, and Goldman Sachs reiterated a Buy with a $340 target. Based on 35 analysts' estimates, the average target price is $301.31, implying a 1.32% upside from the current price.

Broadcom Inc. (AVGO) is poised to release its Q3 2025 earnings report on September 4, with analysts anticipating robust financial performance. The consensus estimates project earnings per share (EPS) of $1.66, a 34% year-over-year (YoY) increase, and revenue of $15.8 billion, representing a 21% YoY growth [1]. This positive outlook is reflected in the elevated price targets from major investment firms.

Piper Sandler has raised its price target to $315, while Goldman Sachs has reiterated a Buy rating with a target of $340. The average price target across 35 analysts is $301.31, indicating a 1.32% upside potential from the current price [1].

Broadcom's strong performance is attributed to its dominant position in the AI semiconductor market and the strategic acquisition of VMware. The company's AI semiconductor division, which includes products like the Tomahawk 6 switches and XPU accelerators, has seen significant growth, with sales reaching $5.1 billion in Q3 2025, up 60% YoY [1]. This growth is driven by the increasing demand for AI-driven workloads from major hyperscalers such as Google, Meta, and Apple.

The VMware acquisition has also contributed to Broadcom's financial success, with infrastructure software revenue reaching $6.7 billion in Q3 2025, a 16% YoY increase [1]. The recurring revenue model of VMware's cloud infrastructure solutions provides predictable cash flows and long-term contract visibility, further bolstering Broadcom's financial stability.

Analysts' optimism is supported by Broadcom's strong balance sheet and aggressive reinvestment strategy. The company's $9.31 billion in research and development (R&D) spending in FY2024 underscores its commitment to innovation and technological leadership in the semiconductor industry [1]. Additionally, Broadcom's strategic partnerships with industry leaders like NVIDIA and AMD have positioned it to capture a significant share of the AI chip market.

Looking ahead, Broadcom's dual focus on hardware and software innovation, along with its disciplined capital allocation strategy, is expected to drive continued growth. The company's AI chip business, characterized by customization and sticky customer relationships, is particularly promising. As major cloud providers expand their AI capabilities, Broadcom is well-positioned to benefit from this spending wave.

In conclusion, Broadcom's Q3 2025 earnings report is expected to reflect the company's strong performance in the AI semiconductor and infrastructure software markets. With analysts projecting robust growth and a "Strong Buy" consensus, investors should closely monitor Broadcom's earnings results for further insights into its AI-driven growth trajectory.

References:
[1] Broadcom's AI Networking Domination and Q3 Earnings Catalysts, Strategic & Financial Deep Dive [https://www.ainvest.com/news/broadcom-ai-networking-domination-q3-earnings-catalysts-strategic-financial-deep-dive-2508/]