Broadcom (AVGO) · Semiconductors
Broadcom Q2 FY2026 earnings: summary, key numbers & outlook
Results filed 3 Jun 2026 · Quarter ended 3 May 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Broadcom reported revenue of $22,187 million for the second quarter, up 48 percent from the prior year period, with GAAP diluted EPS of $1.91 and Non-GAAP diluted EPS of $2.44.
Broadcom had a record second quarter. Revenue was $22,187 million, up 48 percent from a year earlier. Semiconductor revenue from AI was $10.8 billion, up 143%, driven by custom AI accelerators and AI networking. GAAP net income was $9,310 million and free cash flow was $10,262 million, or 46 percent of revenue. Infrastructure software grew only 9%, so AI chips drove the growth.
For the third quarter, Broadcom expects revenue of approximately $29.4 billion, up 84 percent from a year earlier. It expects AI semiconductor revenue of $16.0 billion, with non-GAAP operating income of approximately 67 percent of revenue. The main risks are dependence on a few large customers, supply chain limits, and the cyclical swings of the semiconductor industry. Inventory and receivables rose sharply, and management says actual results may vary materially from guidance.
Key numbers
- Net revenue · GAAP
- $22,187 million
- GAAP net income · GAAP
- $9,310 million
- Non-GAAP net income · non-GAAP
- $12,074 million
- GAAP diluted EPS · GAAP
- $1.91
- Non-GAAP diluted EPS · non-GAAP
- $2.44
- Non-GAAP operating income · non-GAAP
- $14.9B
- Cash from operations · GAAP
- $10,493 million
- Free cash flow · non-GAAP
- $10,262 million
up 48 percent from the prior year period
up 88% from a year ago
up 55% from a year ago
up 85% from a year ago
up 54% from a year ago
up 60% from a year ago
up 60% from a year ago
| Segment or metric | Value | Change |
|---|---|---|
| Semiconductor revenue from AI | $10.8 billion | grew 143% year-over-year |
| Semiconductor solutions | $15,009 | +79% |
| Infrastructure software | 7,178 | +9% |
Where each number comes from
- Net revenue: “Revenue of $22,187 million for the second quarter, up 48 percent from the prior year period”
- GAAP net income: “GAAP net income of $9,310 million for the second quarter; Non-GAAP net income of $12,074 million for the second quarter”
- Non-GAAP net income: “GAAP net income of $9,310 million for the second quarter; Non-GAAP net income of $12,074 million for the second quarter”
- GAAP diluted EPS: “GAAP diluted EPS of $1.91 for the second quarter; Non-GAAP diluted EPS of $2.44 for the second quarter”
- Non-GAAP diluted EPS: “GAAP diluted EPS of $1.91 for the second quarter; Non-GAAP diluted EPS of $2.44 for the second quarter”
- Non-GAAP operating income: “Operating income on non-GAAP basis | $14,928 | $12,826 | $9,793 | $27,754 | $19,621”
- Cash from operations: “Cash from operations of $10,493 million for the second quarter, less capital expenditures of $231 million, resulted in $10,262 million of free cash flow, or 46 percent of revenue”
- Free cash flow: “Cash from operations of $10,493 million for the second quarter, less capital expenditures of $231 million, resulted in $10,262 million of free cash flow, or 46 percent of revenue”
- Semiconductor revenue from AI: “Q2 semiconductor revenue from AI of $10.8 billion grew 143% year-over-year, above our forecast”
- Semiconductor solutions: “Semiconductor solutions | $15,009 | 68% | $8,408 | 56% | +79% Infrastructure software | 7,178 | 32 | 6,596 | 44 | +9%”
- Infrastructure software: “Semiconductor solutions | $15,009 | 68% | $8,408 | 56% | +79% Infrastructure software | 7,178 | 32 | 6,596 | 44 | +9%”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 FY2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $22.2B | +47.9% | +14.9% |
| Operating income | $10.8B | +85.1% | +26.0% |
| Net income | $9.3B | +87.5% | +26.7% |
| Diluted EPS | $1.91 | +85.4% | +27.3% |
| Free cash flow | $10.3B | +60.1% | +28.1% |
| Gross margin | 69.5% | +1.5 pts | +1.4 pts |
| Operating margin | 48.6% | +9.8 pts | +4.3 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Revenue | third quarter of fiscal year 2026 | $29.4 billion |
| Semiconductor revenue from AI | third quarter of fiscal year 2026 | $16.0 billion |
| Non-GAAP operating income as share of revenue | third quarter of fiscal year 2026 | 67 percent |
| Adjusted EBITDA as share of revenue | third quarter of fiscal year 2026 | 68 percent |
Key takeaways
AI semiconductors drove record quarterly revenue
Q2 semiconductor revenue from AI of $10.8 billion grew 143% year-over-year, above management's forecast. Total revenue was $22,187 million, up 48 percent.
Software is growing far slower than chips
Semiconductor solutions revenue rose 79% to $15,009 million in millions-table terms, while Infrastructure software rose just 9%. Semiconductors are now 68% of revenue versus 56% a year ago.
Third-quarter guidance implies a steep step-up
Broadcom guides revenue of approximately $29.4 billion, up 84 percent from the prior year period. AI semiconductor revenue is expected to reach $16.0 billion.
Cash generation was strong at 46% of revenue
Free cash flow was $10,262 million, up 60%, and cash rose to $19,628 million from $14,174 million. The company paid $3,092 million in dividends and repurchased $600 million of stock.
Working capital absorbed cash as growth accelerated
Inventory rose to $4,328 million from $2,270 million at the prior fiscal year-end. Trade receivables rose to $10,830 million from $7,145 million.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 FY24 | $14.1B * |
| Q1 FY25 | $14.9B |
| Q2 FY25 | $15.0B |
| Q3 FY25 | $16.0B |
| Q4 FY25 | $18.0B * |
| Q1 FY26 | $19.3B |
| Q2 FY26 | $22.2B |
| Q3 FY26 | $29.6B |
Data
| Q1 FY25 | $1.14 |
| Q2 FY25 | $1.03 |
| Q3 FY25 | $0.85 |
| Q1 FY26 | $1.50 |
| Q2 FY26 | $1.91 |
| Q3 FY26 | $2.68 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 FY24 | 32.9% |
| Q1 FY25 | 42.0% |
| Q2 FY25 | 38.8% |
| Q3 FY25 | 36.9% |
| Q4 FY25 | 41.7% |
| Q1 FY26 | 44.3% |
| Q2 FY26 | 48.6% |
| Q3 FY26 | 53.9% |
Data
| Q4 FY24 | $5.5B |
| Q1 FY25 | $6.0B |
| Q2 FY25 | $6.4B |
| Q3 FY25 | $7.0B |
| Q4 FY25 | $7.5B |
| Q1 FY26 | $8.0B |
| Q2 FY26 | $10.3B |
| Q3 FY26 | $13.7B |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Broadcom's Q2 fiscal 2026 results?
Revenue was $22,187 million, up 48 percent from the prior year period. GAAP diluted EPS was $1.91 and Non-GAAP diluted EPS was $2.44.
How much AI revenue did Broadcom report and what is expected next?
Q2 semiconductor revenue from AI was $10.8 billion, up 143% year-over-year. For Q3 management expects it to grow over 200 percent year-over-year to $16.0 billion.
What is Broadcom's guidance for the third quarter of fiscal 2026?
Revenue guidance is approximately $29.4 billion, up 84 percent year over year. Non-GAAP operating income is guided to approximately 67 percent of revenue and Adjusted EBITDA to approximately 68 percent.
How much free cash flow did Broadcom generate?
Free cash flow was $10,262 million, or 46 percent of revenue, up 60% from a year ago. It came from $10,493 million of cash from operations less $231 million of capital expenditures.
What dividend did Broadcom declare?
The board approved a quarterly cash dividend of $0.65 per share, payable on June 30, 2026 to stockholders of record on June 22, 2026.
Documents
SEC filing