Broadcom Just Named Its Next Customer to Pass Google: Anthropic. Here's Why That Matters More Than the Earnings Beat.
The market didn't reward Broadcom's latest quarterly report with big stock gains, but the business's outlook remains promising.
Overview
After the market closed on Sept. 2, Broadcom (NASDAQ: AVGO) published results for the third quarter of its 2026 fiscal year, which ended May 2. The company reported non-GAAP (adjusted and not in accord with generally accepted accounting principles) earnings per share (EPS) of $3.32 on revenue of $29.59 billion, exceeding the average Wall Street analyst targets for adjusted EPS of $3.24 on sales of $29.36 billion.
The stock actually fell on the heels of the company's report due to high expectations and a company forecast for sales of $34.8 billion in the current quarter, falling short of the average target for sales of $35.03 billion in the period. But while investors treated the shortfall as more important than the Q3 sales and earnings beats, Broadcom's statement that sales to Anthropic are on track to surpass sales to Alphabet's (NASDAQ: GOOG)(NASDAQ: GOOGL) Google division looks more significant than both of these factors.
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Originally published at www.fool.com.