# Broadcom (AVGO) Q2 FY2026 earnings

Results filed 2026-06-03 for the quarter ended 2026-05-03. Source page: https://earnings.opennash.com/companies/avgo/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1730168/000173016826000051/0001730168-26-000051-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Net revenue | $22,187 million | up 48 percent from the prior year period | GAAP |
| GAAP net income | $9,310 million | up 88% from a year ago | GAAP |
| Non-GAAP net income | $12,074 million | up 55% from a year ago | non-GAAP |
| GAAP diluted EPS | $1.91 | up 85% from a year ago | GAAP |
| Non-GAAP diluted EPS | $2.44 | up 54% from a year ago | non-GAAP |
| Non-GAAP operating income | $14,928 |  | non-GAAP |
| Cash from operations | $10,493 million | up 60% from a year ago | GAAP |
| Free cash flow | $10,262 million | up 60% from a year ago | non-GAAP |
| Adjusted EBITDA | $15,244 million | up 52% from a year ago | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Semiconductor revenue from AI | $10.8 billion | grew 143% year-over-year |
| Semiconductor solutions | $15,009 | +79% |
| Infrastructure software | 7,178 | +9% |

## 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

1. **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.
2. **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.
3. **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.
4. **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.
5. **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.

## 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.