Broadcom Posts $29.6 Billion Revenue on 86% Growth

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• AVGO

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Broadcom Inc. (AVGO) reported third-quarter revenue of $29.6 billion, up 86% from a year earlier, as year-over-year growth accelerated for a second consecutive quarter after 48% in the prior period and 29% two quarters earlier. [1][2][3][4][5][6]

The semiconductor and infrastructure software company said demand for custom AI accelerators and networking remained very strong. President and Chief Executive Officer Hock Tan said AI semiconductor revenue of $16.7 billion grew 221% year-over-year and 54% quarter-over-quarter. [1]

That AI line had been $10.8 billion in the second quarter, up 143% from a year earlier, and $8.4 billion in the first quarter, up 106%. Tan said the company expects AI semiconductor revenue to accelerate to $21.7 billion in the fourth quarter, up 236% year-over-year. [1][3][5]

Semiconductor solutions, the larger reportable segment, generated $20.8 billion, or 70% of revenue, up 127% from a year earlier. That mix had been 68% of revenue in the second quarter and 65% two quarters earlier. Infrastructure software contributed $8.8 billion, or 30% of revenue, up 29% from a year earlier. [2][4][6]

GAAP operating income was $16.0 billion, up 171% from a year earlier. Non-GAAP operating income was $20.1 billion, up 92%, and equaled 68% of revenue, compared with 67% in the second quarter. GAAP diluted earnings were $2.68 a share, up 215% from a year earlier. Non-GAAP diluted earnings were $3.32 a share, up 96%. [1][2][7][3][4]

Cash from operations was $14.2 billion. After $0.5 billion of capital expenditures, free cash flow was $13.7 billion, or 46% of revenue. Cash and cash equivalents were $24.0 billion at quarter-end. The board approved a quarterly dividend of $0.65 a share, payable Sept. 30 to holders of record Sept. 21. [1][2][8][9]

For the fourth quarter, ending Nov. 1, 2026, Broadcom guided revenue of approximately $34.8 billion, an increase of 93% from the prior-year period. Third-quarter guidance had been approximately $29.4 billion, implying 84% year-over-year growth. [1][2][3]

Non-GAAP operating income for the fourth quarter is guided at approximately 66% of projected revenue, below the 67% third-quarter outlook. Chief Financial Officer Amie Thuener said the company expects to maintain its non-GAAP operating margin at 66%, flat from a year ago. [1][2][3]

The company said the guidance is only an estimate of what it believes is realizable as of the release date. [2]

Citations

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  1,AVGO,ex_99_1,2026-09-02,0001730168-26-000076,filing
  2,AVGO,ex_99_1,2026-09-02,0001730168-26-000076,filing
  3,AVGO,ex_99_1,2026-09-02,0001730168-26-000076,filing
  4,AVGO,ex_99_1,2026-09-02,0001730168-26-000076,filing
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