Broadcom Inc.

Broadcom Inc. Earnings Recaps

AVGO Information Technology 3 recaps
Q2 2026 Jun 5, 2026

Shares tumbled 13% as investors were disappointed by cautious commentary on the software segment and a tempered outlook for AI semiconductor scaling despite record revenue; the sharp multiple contraction suggests concern over margin sustainability and execution risks ahead.

Key takeaways
  • Q2 total revenue hit a record $22.2 billion, driven by AI semiconductor revenue of $10.8 billion, up 143% year-over-year, with strong bookings over $30 billion signaling solid demand.
  • Semiconductor segment revenue grew 79% YoY, with networking and XPUs contributing significantly, though non-AI semiconductors showed modest 6% growth amid seasonal wireless declines.
  • Infrastructure software revenue rose 9% YoY to $7.2 billion, meeting guidance but lacking impressive acceleration, with ARR growth of 17%; management forecasts only 31% software growth in Q3.
  • Operating margins remained elevated at 67% (adjusted EBITDA 69%), but concerns linger about sustaining such exceptionally high margins as AI investments scale rapidly.
  • Q3 semiconductor revenue guidance of $20.5 billion (up 124%) and AI semiconductor revenue acceleration to $16 billion are positive but may be offset by cautious tone on future execution and AI software adoption risks.
Full recap
Q1 2026 Mar 6, 2026

Broadcom delivered exceptional first-quarter results in fiscal 2026, with record revenue of $19.3 billion, driven by explosive growth in AI semiconductor sales, positioning the company for continued momentum ahead.

Key takeaways
  • Total revenue increased 29% year-on-year, surpassing guidance, with operating leverage reflected in a record adjusted EBITDA of $13.1 billion (68% of revenue).
  • AI semiconductor revenue surged 106% year-on-year to $8.4 billion; projected to reach $10.7 billion in Q2 2026, driven by robust customer demand and the ramp-up of custom AI accelerators.
  • Infrastructure Software revenue rose 1% year-on-year to $6.8 billion, with VMware's bookings exceeding $9.2 billion and sustaining a 19% annual recurring revenue growth.
  • Broadcom is on track for AI revenue exceeding $100 billion in 2027, bolstered by secured supply chains and deep strategic partnerships with key cloud service providers.
  • Non-AI semiconductor revenue remained flat at $4.1 billion in Q1, with expectations for modest growth in the upcoming quarter.
Full recap
Q4 2025 Dec 12, 2025

Broadcom posted record fourth-quarter revenue of $18 billion, up 28% year-over-year, driven by robust growth in AI semiconductors and infrastructure software, setting the stage for continued expansion into 2026.

Key takeaways
  • AI semiconductor revenue surged 74% year over year, contributing $6.5 billion in Q4, while total semiconductor revenue reached $11.1 billion.
  • Infrastructure software revenue increased 19% to $6.9 billion, bolstered by strong contract bookings, bringing the total backlog for this segment to $73 billion.
  • Anticipating further momentum, Q1 2026 revenue is forecasted at $19.1 billion, with AI revenue expected to double year over year.
  • Broadcom's total order backlog now exceeds $162 billion, highlighting significant growth prospects, particularly in AI infrastructure components.
  • Adjusted EBITDA for Q4 reached a record $12.12 billion, representing 68% of revenue, outperforming previous guidance.
Full recap