$60B Revenue, $19B Net Income

Broadcom Inc. (NASDAQ:AVGO) is scheduled to announce earnings Thursday, Dec. 11, 2025. The company has a market capitalization of $1.9 trillion. Over the past 12 months, it reported $60 billion in revenue, $23 billion in operating profit and $19 billion in net income.

Broadcom has continued to perform strongly after its recent earnings, and there are several reasons to believe its upward momentum could persist. First, it benefits from diversified, high-margin product lines spanning semiconductors, infrastructure software, and networking — meaning it does not depend on a single market segment. Second, its enterprise-grade hardware and software offerings remain in demand as cloud providers, data centers, and telecom companies continue investing in connectivity, AI infrastructure, and next-generation networking. Third, Broadcom’s scale and integrated supply-chain capabilities give it a competitive edge over smaller peers, helping it win contracts and maintain stable gross margins. Finally, strong cash flow and disciplined management (including a judicious acquisition strategy and steady dividend/share-buyback track record) support both reinvestment and returns to shareholders, boosting investor confidence.

While much will hinge on how the results compare to consensus expectations, gaining insight into historical trends could potentially tilt the odds in your favor if you are a trader focused on events.

There are two approaches to achieve this: comprehend historical probabilities and prepare in advance of the earnings announcement, or analyze the correlation between short-term and medium-term returns following earnings and adjust your position accordingly after the earnings are disclosed.

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Broadcom’s Historical Likelihood Of Positive Post-Earnings Return

Here are some insights regarding one-day (1D) post-earnings returns:

• Over the past five years, a total of 19 earnings data points have been recorded, with 15 being positive and 4 being negative one-day (1D) returns noted. In conclusion, positive 1D returns were realized approximately 79% of the time.
• Nonetheless, this percentage drops to 64% when we examine data from the last 3 years instead of 5.
• The median of the 15 positive returns equals 3.0%, while the median of the 4 negative returns equals -6.2%

Additional information for observed 5-Day (5D) and 21-Day (21D) returns post earnings is summarized along with the corresponding statistics in the table below.

Correlation Between 1D, 5D And 21D Historical Returns

A relatively lower-risk approach (though ineffective if the correlation is weak) involves understanding the relationship between short-term and medium-term returns following earnings, identifying a pair that demonstrates the highest correlation, and executing the corresponding trade. For instance, if the 1D and 5D returns exhibit the strongest correlation, a trader can position themselves as “long” for the subsequent 5 days if the 1D post-earnings return is positive. Below is some correlation data based on a 5-year and a 3-year (more recent) history. Note that the correlation 1D_5D refers to the connection between 1D post-earnings returns and the subsequent 5D returns.

Is There Any Correlation With Peer Earnings?

Sometimes, the performance of peers can impact the post-earnings response of a stock. In fact, the pricing may begin before the earnings announcements are made. Below is some historical data comparing the post-earnings performance of Broadcom stock with that of peers who reported earnings just before Broadcom did. For a fair comparison, peer stock returns are represented as post-earnings one-day (1D) returns as well.

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