Broadcom Inc. Q3 2026 Earnings Recap

Broadcom shares fell 2.7% after earnings, a roughly flat reaction despite record revenue and sharply higher AI sales. The transcript points to no clear negative surprise: management raised its fiscal 2026 AI revenue outlook, while its more distant customer deployment plans remain forward-looking.

Key Takeaways

• Q3 revenue was $29.6 billion, up 86% year over year; operating income grew 92%, and operating margin reached a record 68% of revenue.
• AI semiconductor revenue was $16.7 billion, up 221% year over year and 54% sequentially; XPU shipments rose more than 3.5x year over year.
• For Q4, Broadcom expects revenue from AI to reach $21.7 billion, up 236% year over year, with both XPU and AI networking revenue expected to triple year over year.
• Management expects fiscal 2026 AI revenue of $58 billion, up 186% year over year and above its prior $56 billion outlook.
• Longer-term customer plans include Anthropic deploying 5 gigawatts of TPU v8i in 2027 and OpenAI deploying 1.3 gigawatts of Jalapeno in 2027; these are management’s expectations, not realized results.