Broadcom Inc.
AVGO · Nasdaq
Next quarter
Expected to report Dec 10, 2026 — estimated from last year’s reporting date.
Consensus is $3.45 EPS for Oct 2026 across 9 estimates, ranging $3.32 to $3.51.
AVGO Jul 2026
- 7.07%
- -2.74%
- $2.83
- $3.03
- —
- $29.59B
Reported results
- $29.59B
- $15.96B
- $13.09B
- $2.68
Highlights
- AI acceleration: Q3 AI semiconductor revenue reached $16.7 billion, up 221% year over year and 54% sequentially; Broadcom expects $21.7 billion in Q4, up 236% year over year.
- Record growth: Revenue was $29.6 billion, up 86% year over year and approximately 33% sequentially from $22.2 billion in Q2.
- Q4 outlook: Broadcom guided to approximately $34.8 billion of Q4 revenue, implying 93% year-over-year growth, with non-GAAP operating margin expected to hold at 66%.
- Earnings beat: The supplied earnings comparison lists EPS of $3.03 versus consensus of $2.83, a 7.07% surprise; the release separately reported GAAP diluted EPS of $2.68 and non-GAAP diluted EPS of $3.32.
- Semiconductor dominance: Semiconductor solutions revenue was $20.8 billion, up 127% year over year and representing 70% of company revenue.
- Software contribution: Infrastructure software revenue was $8.8 billion, up 29% year over year and representing 30% of revenue, providing a slower-growing but substantial base.
- Cash generation: Operating cash flow was $14.2 billion and free cash flow was $13.7 billion, equal to 46% of revenue and up 95% year over year.
- Profit expansion: GAAP operating income increased 171% year over year to $16.0 billion, while non-GAAP operating income rose 92% to $20.1 billion.
- Balance sheet and returns: Cash ended the quarter at $24.0 billion versus $19.6 billion at the end of Q2; Broadcom paid $3.1 billion in dividends and declared another $0.65-per-share quarterly dividend.
Analysis
Broadcom’s fiscal Q3 2026 was another sharp acceleration, led overwhelmingly by AI infrastructure demand. Revenue of $29.6 billion rose 86% from $16.0 billion a year ago and about 33% sequentially from $22.2 billion in Q2. GAAP operating income reached $16.0 billion, up 171% year over year and 48% sequentially, while GAAP net income was $13.1 billion versus $4.1 billion a year ago and $9.3 billion in Q2. The supplied earnings comparison shows EPS of $3.03 against consensus of $2.83, although the release reports $2.68 of GAAP diluted EPS and $3.32 on a non-GAAP basis.
The defining figure was $16.7 billion of AI semiconductor revenue, up 221% year over year and 54% sequentially. Management expects that figure to rise to $21.7 billion in Q4, supporting consolidated revenue guidance of $34.8 billion, or 93% year-over-year growth. Semiconductor solutions grew 127% to $20.8 billion, while infrastructure software grew 29% to $8.8 billion. The expansion also converted strongly into cash: free cash flow was $13.7 billion, or 46% of revenue, up 95% year over year. Broadcom expects Q4 non-GAAP operating margin of 66%, maintaining the prior-year level despite the rapid growth.
AI semiconductor demand
AI was the quarter’s central driver and strengthened sequentially. Broadcom reported $16.7 billion of AI semiconductor revenue, up 221% year over year and 54% from Q2. Management attributed the momentum to continued demand for custom AI accelerators and networking products. The Q4 forecast calls for AI semiconductor revenue of $21.7 billion, implying 30% sequential growth and 236% year-over-year growth.
- Custom accelerators: Demand remained strong enough for management to forecast another substantial sequential increase in AI semiconductor revenue in Q4.
- Networking: Networking was cited alongside custom accelerators as a key source of ongoing AI infrastructure demand, supporting the broader semiconductor portfolio.
- Forward trajectory: Q4 AI revenue guidance would make AI semiconductors roughly 62% of the company’s $34.8 billion consolidated revenue outlook.
Record financial performance
Revenue reached $29.6 billion, up 86% year over year from $16.0 billion and about 33% sequentially from $22.2 billion in Q2. GAAP operating income was $16.0 billion, compared with $5.9 billion a year ago and $10.8 billion in Q2. Non-GAAP operating income was $20.1 billion, up 92% year over year from $10.5 billion and 35% sequentially from $14.9 billion.
- Net income: GAAP net income was $13.1 billion, up 216% year over year from $4.1 billion and 41% sequentially from $9.3 billion.
- Margins: GAAP operating margin was approximately 54%, while non-GAAP operating margin was approximately 68%; Q4 non-GAAP operating margin is guided at 66%.
- EPS: The release reported GAAP diluted EPS of $2.68 versus $0.85 a year ago and $1.91 in Q2, and non-GAAP diluted EPS of $3.32 versus $1.69 a year ago and $3.03 in Q2. The supplied consensus comparison lists reported EPS of $3.03 against expectations of $2.83.
Semiconductor and software mix
Semiconductor solutions accounted for most of the expansion, with Q3 revenue of $20.8 billion, up 127% year over year and representing 70% of company revenue. Infrastructure software contributed $8.8 billion, up 29% year over year and representing 30% of revenue. The mix shows Broadcom’s growth increasingly concentrated in AI-related semiconductors, while software remains a sizable recurring-oriented base.
- Semiconductors: Revenue increased from $9.2 billion in the year-ago quarter, with AI accelerators and networking driving the sharpest growth.
- Infrastructure software: Revenue rose from $6.8 billion a year ago, materially slower than semiconductor growth but still adding $2.0 billion of year-over-year revenue.
- Operating leverage: Non-GAAP operating income grew 92% year over year, faster than the 86% increase in consolidated revenue, while management expects the Q4 margin to remain broadly stable.
Cash flow and capital allocation
Broadcom generated $14.2 billion of operating cash flow in Q3 and spent $0.5 billion on capital expenditures, producing $13.7 billion of free cash flow, or 46% of revenue. Free cash flow increased 95% from $7.0 billion a year ago and 33% from $10.3 billion in Q2. Cash and equivalents rose to $24.0 billion from $19.6 billion at the end of the prior quarter.
- Shareholder returns: The company paid $3.1 billion in dividends during the quarter and approved another quarterly dividend of $0.65 per share, payable September 30, 2026.
- Debt activity: Broadcom paid down $5.6 billion of debt during the quarter; long-term debt ended at $57.2 billion, down from $62.0 billion at fiscal year-end.
- Repurchases: No common-stock repurchases were recorded in Q3, compared with $0.6 billion in Q2; fiscal year-to-date repurchases totaled $8.5 billion.
