The massive Q3 guidance raise to $29.4B (+84% YoY) and AI revenue acceleration to $16.0B in Q3 (over 200% YoY) signal a structural inflection in AI infrastructure spending that far exceeds prior expectations. Traders should position for continued upside momentum as the AI custom accelerator and networking cycle accelerates, with potential for further upward revisions through the year.
Price Chart
Executive Summary
Broadcom reported Q2 FY2026 results with record revenue of $22.187B (+48% YoY), GAAP diluted EPS of $1.91 (+85% YoY), and non-GAAP diluted EPS of $2.44 (+54% YoY). AI semiconductor revenue surged 143% YoY to $10.8B, and Q3 revenue guidance of ~$29.4B (+84% YoY) with AI semiconductor revenue expected to grow over 200% YoY to $16.0B dramatically exceeded consensus expectations, driving a strongly bullish read-through.
Key Financial Metrics
Key Facts
- Q2 FY2026 revenue of $22.187B, up 48% YoY from $15.004B
- GAAP diluted EPS of $1.91, up 85% YoY from $1.03
- Non-GAAP diluted EPS of $2.44, up 54% YoY from $1.58
- AI semiconductor revenue of $10.8B, up 143% YoY
- Adjusted EBITDA of $15.244B, or 69% of revenue, up 52% YoY
- Free cash flow of $10.262B, or 46% of revenue, up 60% YoY
- Q3 FY2026 revenue guidance of ~$29.4B, up 84% YoY
- Q3 AI semiconductor revenue expected to grow over 200% YoY to $16.0B
- Quarterly dividend of $0.65 per share declared, payable June 30, 2026
- Cash and cash equivalents of $19.628B, up from $14.174B at prior quarter end
Financial Impact
Q2 revenue beat consensus by ~$2.5B (22.187B vs 19.3B implied from prior guidance); Q3 guidance of $29.4B is ~$7.4B above prior consensus of ~$22B, driven by AI semiconductor acceleration
Risk Factors
- Execution risk on ramping AI semiconductor production to $16B quarterly run rate
- Customer concentration risk — a handful of hyperscalers drive AI revenue
- Trade restrictions or export controls on AI semiconductors could disrupt supply chain
- Infrastructure software segment growth of only 9% YoY shows non-AI business lagging
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001730168-26-000051 |
| Document: avgo-20260603.htm | 0001730168-26-000051 |
| Document: 0001730168-26-000051-index-headers.html | 0001730168-26-000051 |
| Document: 0001730168-26-000051-index.html | 0001730168-26-000051 |
| Document: 0001730168-26-000051.txt | 0001730168-26-000051 |
| 8-K Data (Synthetic) | 0001730168-26-000051 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 21d ago | ANALYST-UPGRADE | — | awaiting T+20 | — | — |
Sep 3, 2026 28d ago | ANALYST-UPGRADE | — | awaiting T+20 | — | — |
Aug 21, 2026 6w ago | ANALYST-UPGRADE | $368.45 $362.66 | ▼ −1.57% | ▼ −1.05% | $347.86 (−5.59%) |
Aug 9, 2026 7w ago | Institutional Cluster | $422.40 $368.56 | ▼ −12.75% | ▼ −11.83% | $347.86 (−17.65%) |
Aug 3, 2026 8w ago | Press Release | $392.23 $370.16 | ▲ +5.63% | ▲ +6.87% | $347.86 (+11.31%) |
Jul 15, 2026 11w ago | Insider Cluster | $394.28 $415.88 | ▲ +5.48% | ▲ +3.14% | $347.86 (−11.77%) |
Jul 15, 2026 11w ago | Insider Cluster | $394.28 $415.88 | ▲ +5.48% | ▲ +3.14% | $347.86 (−11.77%) |
Jul 10, 2026 11w ago | Insider Cluster | $384.05 $422.40 | ▲ +9.99% | ▲ +6.80% | $347.86 (−9.42%) |
Jul 10, 2026 11w ago | 144 | $384.05 $422.40 | ▲ +9.99% | ▲ +6.80% | $347.86 (−9.42%) |
Jul 8, 2026 12w ago | 144 | $401.11 $420.57 | ▼ −4.85% | ▼ −2.61% | $347.86 (+13.28%) |
US Market Status
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