01—Abstract
Summary
Summary of the 10-Q filed March 11, 2026. Cited figures are marked; the original filing is the authoritative source.
Broadcom Inc. reported strong financial results for the fiscal quarter ended February 1, 2026, with total net revenue reaching $19.31 billiona, a significant increase of 29% year-over-year.
This growth was primarily driven by a 52% surge in the Semiconductor Solutions segment, fueled by robust demand for AI accelerators and networking products. The Infrastructure Software segment showed more modest growth, increasing revenue by 1%. Net income also saw a substantial rise to $7.35 billionb, up from $5.50 billion in the prior year period, reflecting improved profitability and operational efficiencies.
The company demonstrated strong cash flow generation, with $8.26 billionc in cash from operating activities. Broadcom continued its commitment to returning capital to shareholders through substantial dividend payments of $3.09 billion and significant share repurchases totaling $7.85 billion during the quarter. Despite a large debt load of approximately $66 billion, the company remains confident in its liquidity position, with ample cash reserves and an undrawn revolving credit facility to meet its obligations.
02—Key points
Key Highlights
- Total net revenue increased by 29% to $19.31 billion in the fiscal quarter ended February 1, 2026, compared to the prior year period.
- Semiconductor Solutions segment revenue surged by 52% year-over-year, driven by strong demand for AI accelerators and networking products.
- Net income rose significantly to $7.35 billion, a 33.5% increase from $5.50 billion in the comparable prior year quarter.
- Operating cash flow was robust at $8.26 billion for the quarter.
- The company returned substantial capital to shareholders, with $3.09 billion in dividends paid and $7.85 billion in common stock repurchased during the quarter.
- Despite significant debt, Broadcom maintains a strong liquidity position, with $14.17 billion in cash and cash equivalents.
- Gross margin remained stable year-over-year at 68%, indicating strong pricing power and operational efficiency despite a higher mix of semiconductor solutions revenue.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Broadcom kept $0.38.
- Revenue$19.31B100.0%
- Cost of revenue−$6.15B31.9%
- Gross profit$13.16B68.1%
- Operating costs−$4.59B23.8%
- Operating income$8.56B44.3%
- Interest, other & tax−$1.21B6.3%
- Net income$7.35B38.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed March 11, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $19.31B$14.92B | +29.5% |
| Cost of Revenue | $6.15B$4.77B | +29.0% |
| Gross Profit | $13.16B$10.14B | +29.7% |
| R&D Expenses | $2.96B$2.25B | +31.6% |
| SG&A Expenses | $1.02B$949.00M | +7.4% |
| Operating Expenses | $4.59B$3.88B | +18.2% |
| Operating Income | $8.56B$6.26B | +36.8% |
| Interest Expense | $801.00M$873.00M | −8.2% |
| Net Income | $7.35B$5.50B | +33.5% |
| EPS (Basic) | $1.55$1.17 | +32.5% |
| EPS (Diluted) | $1.50$1.14 | +31.6% |
| Shares Outstanding (Basic) | 4.74B4.70B | +1.0% |
| Shares Outstanding (Diluted) | 4.89B4.84B | +1.1% |
05—Questions
Frequently Asked Questions
What drove the significant revenue growth in the Semiconductor Solutions segment?
The substantial 52% year-over-year revenue increase in the Semiconductor Solutions segment was primarily driven by strong demand for Broadcom's networking solutions, specifically custom AI accelerators and AI networking products.
How is Broadcom managing its significant debt load?
Broadcom has a substantial debt of approximately $66 billion. While it's a significant figure, the company's strong operating cash flow generation and substantial cash reserves provide liquidity. The company also refinanced some debt and noted a decrease in overall debt balances and interest expense year-over-year. They also highlighted that they were in compliance with all debt covenants as of February 1, 2026.
What is the impact of the VMware acquisition on the financial results?
The filing notes that Broadcom recorded a $315 million gain from the reversal of excise tax charges related to the acquisition of VMware, Inc., as the final regulations exempted such acquisitions from excise tax. This gain contributed to the 'Other income, net' line item.
How does Broadcom balance capital return to shareholders with its investment needs?
Broadcom is actively returning capital to shareholders through significant dividend payments and share repurchases, totaling approximately $10.9 billion in the fiscal quarter ended February 1, 2026. Simultaneously, the company continues to invest in research and development, with R&D expenses increasing by 32% year-over-year, indicating a strategy of balancing shareholder returns with reinvestment in future growth.
06—Continue