Broadcom rises on earnings beat, ups 2026 quarterly dividend by 10%

Broadcom Inc on Thursday raised its 2026 dividend as it reported fourth quarter earnings and revenue ahead of expectations.

Shares in the Palo Alto, California-based chipmaker rose 2.9% after hours in New York on Thursday. They had earlier closed down 1.6% at USD406.37.

In its fourth quarter ended November 2, net income climbed 97% to USD8.52 billion from USD4.32 billion a year prior. Diluted earnings per share was USD1.74 compared to USD0.90.

Adjusted EPS of USD1.95 beat the USD1.86 LSEG consensus estimate.

Revenue was USD18.02 billion, up 28% from USD14.05 billion last year and ahead of the USD17.49 billion consensus.

Of total revenue, Semiconductor solutions was USD1.07 billion, up 35% on-year. Infrastructure software revenue was USD6.94 billion, up 19%.

Adjusted earnings before interest taxes depreciation and amortisation climbed 35% on-year to USD43.00 billion. Free cash flow was USD7.45 billion, compared to USD5.48 billion a year ago.

Chief Executive Officer Hock Tan said Broadcom expects momentum to continue into the first quarter, with AI semiconductor revenue driven by custom AI accelerators and ethernet AI switches.

Broadcom expects first quarter AI semiconductor revenue to double on-year to USD8.2 billion. Total revenue of USD19.1 billion is forecast alongside an adjusted Ebitda margin of 67%.

This compares to revenue of USD14.05 billion and an Ebitda margin of 65% in the first quarter of 2025.

Broadcom will raise its quarterly dividend by 10% to USD0.65 in 2026, due to increased cash flows.