10-QPeriod: Q1 FY2026

Broadcom Inc. Quarterly Report for Q1 Ended Feb 1, 2026

Filed March 11, 2026For Securities:AVGO

Summary

Broadcom Inc. reported strong financial results for the fiscal quarter ended February 1, 2026, with total net revenue reaching $19.31 billion, 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 billion, 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 billion 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.

Financial Highlights

54 data points
Beta

Revenue

$19.31B

68.1% Gross Margin

Net Income

$7.35B

38.1% Net Margin

EPS (Diluted)

$1.50

Total Assets

$169.90B

Cash & Equivalents

$14.17B

Free Cash Flow

$8.01B

Financial Statements
Beta
Revenue$19.31B
Cost of Revenue$6.15B
Gross Profit$13.16B
R&D Expenses$2.96B
SG&A Expenses$1.02B
Operating Expenses$4.59B
Operating Income$8.56B
Interest Expense$801.00M
Net Income$7.35B
EPS (Basic)$1.55
EPS (Diluted)$1.50
Shares Outstanding (Basic)4.74B
Shares Outstanding (Diluted)4.89B

Key Highlights

  • 1Total net revenue increased by 29% to $19.31 billion in the fiscal quarter ended February 1, 2026, compared to the prior year period.
  • 2Semiconductor Solutions segment revenue surged by 52% year-over-year, driven by strong demand for AI accelerators and networking products.
  • 3Net income rose significantly to $7.35 billion, a 33.5% increase from $5.50 billion in the comparable prior year quarter.
  • 4Operating cash flow was robust at $8.26 billion for the quarter.
  • 5The company returned substantial capital to shareholders, with $3.09 billion in dividends paid and $7.85 billion in common stock repurchased during the quarter.
  • 6Despite significant debt, Broadcom maintains a strong liquidity position, with $14.17 billion in cash and cash equivalents.
  • 7Gross margin remained stable year-over-year at 68%, indicating strong pricing power and operational efficiency despite a higher mix of semiconductor solutions revenue.

Frequently Asked Questions

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.

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.

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.

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.