Broadcom Inc. (AVGO) earnings on June 3, 2026
Prior outlook: No statistical edge
The stock fell sharply after reporting earnings, dropping 17% during the day before closing down 13.5%. Despite high expectations, investors responded negatively to the results.
AVGO price around the earnings
413.60
Change: -14.6%
2026-06-05, 00:00 UTC
- Price: green if it ends above the starting price; red if it ends below
- Start of the measured window
- End of the measured window
- Market open
- No trading (market closed)
- Starting price
Prior thesis
Prior outlook: No statistical edge
- Thesis published
Priced for perfection: strong past performance, but limited optimistic potential ahead.
AVGO consistently beats earnings expectations and shows positive price momentum. However, analysts predict only minimal future gains, suggesting the current price may already reflect all expected growth.
Context analyzed before publication
- Summary
- Priced for perfection: strong past performance, but the scenario is constrained.
- Reasoning
- AVGO consistently beats earnings expectations and shows positive price momentum. However, analysts point to a constrained scenario, suggesting the current price may already reflect all expected growth.
- Playbook
- Given the strong momentum and consistent earnings beats, the stock appears fully valued. The limited upside scenario may increase the risk of a 'sell the news' event after earnings.
- Trend
- Positive run-up, strong analyst support, constrained scenario.
Analysts
Drivers
-
Analysts
Negative
While analysts maintain strong buy recommendations, the scenario is limited. This suggests the stock's current price already reflects its full value.
Evidence
- Analyst consensus
- Strong buy
- Consensus average (1-5)
- 1.32
- Analysts covering the stock
- 44
- Average price target
- 485.72
- Lowest price target
- 215.88
- Highest price target
- 630
- Upside to price target
- 0.9%
- Quarterly earnings growth
- 33.5%
- Revenue growth
- 29.5%
- Forward EPS
- 18.55
- Trailing EPS
- 5.15
- Analyst moves in the last 60 days
- 10
- Strong buy: 7
- Buy: 36
- Hold: 4
- Sell: 0
- Strong sell: 0
- Strong buy
- 7
- Buy
- 36
- Hold
- 4
- Sell
- 0
- Strong sell
- 0
- June 1, 2026 · Morgan Stanley: Maintains rating (Overweight → Overweight)
- May 28, 2026 · Susquehanna: Maintains rating (Positive → Positive)
- May 18, 2026 · UBS: Maintains rating (Buy → Buy)
- May 15, 2026 · TD Cowen: Maintains rating (Buy → Buy)
- May 14, 2026 · Wells Fargo: Maintains rating (Overweight → Overweight)
- May 12, 2026 · Citigroup: Maintains rating (Buy → Buy)
- April 16, 2026 · Mizuho: Reiterates rating (Outperform → Outperform)
- April 15, 2026 · Wells Fargo: Maintains rating (Overweight → Overweight)
- April 15, 2026 · JP Morgan: Maintains rating (Overweight → Overweight)
- April 14, 2026 · Cantor Fitzgerald: Reiterates rating (Overweight → Overweight)
News and sentiment
Evidence
Sentiment
- Sentiment
- Constructive
- Mention volume
- Low
- Normalized volume
- 33%
News
Sources (6)
- Top Wall Street Forecasters Revamp Broadcom Price Target Ahead Of Q2 Earnings — Benzinga
- Five Below, Broadcom And 3 Stocks To Watch Heading Into Wednesday — Benzinga
- Gary Black Says Broadcom, Marvell Are 'Big Winners' As Focus Shifts To Custom AI Chips As Nvidia CEO Jensen Huang Touts 'Next Trillion-Dollar Company' — Benzinga
- Broadcom Q2 Preview: Stock 'May As Well Be' Member Of Magnificent Seven, Market Expert Sees Path To $500 — Benzinga
- What's Going On With Broadcom Stock Tuesday? — Benzinga
- Earnings Volatility Watch: 10 Stocks Set For Big Moves This Week, From Nuclear Power To Whiskey Maker — Benzinga
Technicals
Drivers
-
Technical
Negative
The stock has seen significant price increases recently. However, it is approaching a resistance level, which could lead to a 'sell the news' reaction.
Evidence
- Average true range (ATR)
- 3.7%
- Distance to 52-week high
- -1.5%
- 14-day change (14d)
- +16.3%
- 30-day change (30d)
- +21.2%
- 30-day relative strength
- +21.2%
- Benchmark change (0d)
- +0.0%
- Nearest support
- 478.06
- Nearest resistance
- 488.68
- Volume accumulation ratio (14d / 46d)
- 1.63
Trends
Evidence
- Average earnings surprise
- +15.8%
- March 4, 2026: actual EPS 1.5 vs estimate 1.42 (surprise +5.6%)
- December 11, 2025: actual EPS 1.74 vs estimate 1.12 (surprise +55.5%)
- September 4, 2025: actual EPS 1.69 vs estimate 1.66 (surprise +1.6%)
- June 5, 2025: actual EPS 1.58 vs estimate 1.57 (surprise +0.6%)
Expected move
Drivers
-
Past earnings
Positive
The company has a strong recent record of beating earnings expectations, with an average surprise of over 15%. This indicates strong operational execution.
There is no implied-move data available for this event.
Reactions over its last 19 earnings
- Median move
- 5.4%
- 75th percentile move
- 9.1%
- 90th percentile move
- 11.7%
- Up / down moves
- 14 / 5
- Average up move
- +6.5%
- Average down move
- -7.9%
Monitoring and close
What Broadcom Inc. reported
There is no monitoring data available for this event.
Pre-market second reading after the results
There is no second reading available for this event.
How the stock reacted
- Consolidated
- -13.5%
- Max move
- -16.8%
No verdict: the outlook took no direction, so there is nothing to score as a hit or a miss.