EarningsQ3 2026 Earnings Report
MX:AVGO Q3 2026 EPS Results
Actual EPS$60.00
Consensus EPS$58.11
Beat/MissBeat by +$1.90
One Year Ago EPS$30.54
MX:AVGO Q3 2026 Revenue Results
Actual Revenue$534.81B
Expected Revenue$528.48B
Beat/MissBeat by +$6.33B
YoY Revenue Growth+85.50%
Earnings Announcement Details
QuarterQ3 2026
Date09/02/2026
TimeAfter Close
Conference CallWednesday, September 2, 2026
MX:AVGO Upcoming Earnings
Broadcom's next earnings date is estimated for December 10, 2026, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:AVGO Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, driven by record company-wide financial results, triple-digit AI semiconductor growth, expanding custom-accelerator deployments, strong customer commitments, and substantial fiscal 2027 and fiscal 2028 AI revenue visibility. The principal challenges discussed were declining gross margins from AI product mix, wireless softness, supply-chain limitations, and the timing and financing requirements associated with large-scale data-center deployments.Company Guidance
Record Revenue, Operating Income, and Free Cash Flow
Broadcom delivered a record third quarter, with consolidated revenue of $29.6 billion, up 86% year-over-year; operating income of $20.1 billion, up 92%; and record free cash flow of $13.7 billion, representing 46% of revenue.
Strong Operating Leverage and EPS Growth
Q3 operating margin increased 240 basis points year-over-year to 67.9%, while non-GAAP EPS rose 96% year-over-year to $3.32. Management described operating margin as approximately 68% of revenue and attributed the performance to strong operating leverage.
AI Semiconductor Revenue Accelerated
Q3 AI semiconductor revenue grew 221% year-over-year and 54% sequentially to $16.7 billion, representing 56% of total revenue, compared with 49% in Q2.
Semiconductor Solutions Delivered Record Results
Semiconductor Solutions revenue reached a record $20.8 billion, up 127% year-over-year and representing 70% of total company revenue. Segment operating margin was 61%, up 440 basis points year-over-year, as revenue growth outpaced operating expense growth.
Custom Accelerator Shipments Expanded
XPU shipments increased more than 3.5 times year-over-year and represented 73% of AI revenue during the quarter. AI semiconductor revenue from the six XPU customers more than tripled year-over-year to $16.7 billion.
High-Volume TPU and Jalapeno Shipments
Broadcom delivered Ironwood TPU v7 in high volume to Anthropic and Google, began production shipments of Google's next-generation TPU v8i, and shipped Jalapeno, OpenAI's first-generation custom accelerator. Management said TPU v8i is optimized for inference workloads and is comparable to, if not better than, the Vera Rubin GPU in performance, while Jalapeno outperforms Grace Blackwell GPU for inference workloads.
Strong Q4 AI Revenue Outlook
Broadcom expects Q4 AI revenue of $21.7 billion, up 236% year-over-year. Q4 XPU and AI networking revenue are each expected to triple year-over-year.
Raised Fiscal 2026 AI Revenue Outlook
Fiscal 2026 AI revenue is expected to reach $58 billion, up 186% year-over-year and above the prior guidance of $56 billion.
Long-Term AI Revenue Trajectory
Management expects AI semiconductor revenue to approximately double to $115 billion in fiscal 2027 and double again to $230 billion in fiscal 2028. The company said it has secured supply to meet those outlooks and remains on target to exceed $30 in earnings per share in fiscal 2028.
Deepening Google Partnership
Broadcom entered a long-term agreement with Google to develop and supply future generations of TPUs and AI networking. Management said the agreement involves plans to deliver multi-tens of billions of dollars of TPUs annually over the next several years.
Anthropic and OpenAI Deployment Visibility
Broadcom expects Anthropic to deploy 1 gigawatt of Ironwood in 2026, another 5 gigawatts of TPU v8i in 2027, and an incremental 10 gigawatts in 2028. OpenAI's Jalapeno is on track for a planned 1.3-gigawatt deployment in 2027, with line of sight to more than 5 gigawatts of Jalapeno and its successor generation in 2028.
Meta MTIA Partnership Remains on Track
Broadcom expects to deliver three generations of MTIA accelerators to Meta between now and the end of 2027, with line of sight to deploy 3 gigawatts through 2028.
AI Networking Leadership
AI networking revenue grew more than 2.5 times year-over-year. Broadcom was first to market with the 100-terabit Tomahawk 6, taped out Tomahawk 7 as the industry's first 200-terabit-per-second Ethernet switch, and continued to lead in PCI Express switching and optical DSPs.
Tomahawk 6 and Tomahawk Ultra Adoption
Tomahawk 6 was described as a phenomenal success and is deployed across essentially all AI hyperscalers building XPUs with Broadcom, as well as customers not using Broadcom XPUs. Tomahawk Ultra adoption exceeded expectations, with deployments beginning in the quarter and continuing into fiscal 2027 for scale-up applications.
Infrastructure Software Growth and Margin Expansion
Q3 infrastructure software revenue was $8.8 billion, up 29% year-over-year, with annual recurring revenue growth of 15%. Software operating margin increased 650 basis points year-over-year to approximately 84%, while gross margin was 94%.
VMware Private AI Cloud Opportunity
Broadcom announced VMware Private AI Cloud, which combines AI infrastructure, security and compliance, and tools for building and operating trusted AI agents while protecting enterprise data. VMware Cloud is also making it easier for customers to repatriate workloads from public cloud to private cloud.
Healthy Cash Position and Debt Reduction
Cash increased to $24 billion from $19.6 billion in the prior quarter, up $4.3 billion sequentially. Broadcom paid down $5.6 billion of long-term debt during Q3 and an additional $1.5 billion of senior notes after quarter-end.
Shareholder Returns
Broadcom paid $3.1 billion in cash dividends during Q3 based on a quarterly common-stock dividend of $0.65 per share.
Expansion of Manufacturing and Optical Capacity
Broadcom plans to begin deploying its Singapore substrate fab in fiscal 2027. The company said its EML, CW, and VCSEL factories, including indium phosphide facilities in the U.S. and Singapore, are being expanded to more than triple capacity year-over-year, with further increases planned over the next two years.
Strong Q4 Consolidated Guidance
Q4 consolidated revenue is expected to reach $34.8 billion, up 93% year-over-year, including semiconductor revenue of approximately $26.1 billion, up 136%, and infrastructure software revenue of approximately $8.7 billion, up 25%.
MX:AVGO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed