Broadcom Stock Earnings Reports

Broadcom reported record Q2 FY2026 results: consolidated revenue of $22.2B, up 48% YoY, driven by a massive AI semiconductor ramp (semiconductor revenue $15.0B, up 79% YoY; AI semiconductor revenue $10.8B, up 143% YoY). Bookings for AI semiconductors exceeded $30B in the quarter versus $10.8B shipped. Management expects AI semiconductor revenue to accelerate to $16B in Q3 and to total ~$56B for FY2026, and reiterated a target of in excess of $100B for AI semiconductor revenue in FY2027. Infrastructure software revenue was $7.2B (up 9% YoY) with ARR growth of 17% and strong VMware demand. Margins remained extremely strong: Q2 operating margin ~67% and adjusted EBITDA ~69% of revenue; Q3 operating margin guidance ~67% despite a lower consolidated gross margin (~74%) driven by mix (higher share of semiconductors vs software). Free cash flow was a record $10.3B (46% of revenue); cash balance rose to $19.6B. Inventory increased to $4.3B (86 days) as Broadcom secures supply for AI demand. Management highlighted multi-gigawatt commitments and partnerships with major AI customers (Google, Anthropic, OpenAI, Meta) and discussed networking, CPO/optics, and fabric products as key enablers of large-scale AI clusters. Guidance: Q3 consolidated revenue ~$29.4B (up 84% YoY), semiconductor revenue ~$20.5B (up 124% YoY, AI ~$16B), software revenue ~$8.9B (up 31% YoY). Key investor takeaways: extremely strong AI-driven demand and bookings with multi-year visibility; continued high profitability and cash generation; margin dynamics to be modeled by segment due to mix shift toward semiconductors; supply and partner agreements emphasize multiyear, multi‑gigawatt deployments.