What drove the strong revenue growth in Q2 fiscal 2026?

Revenue growth was led by the semiconductor segment, which rose 79% to $15.0 billion, mainly on AI demand. Management cited custom AI accelerators (XPUs) and AI networking. AI semiconductor revenue reached $10.8 billion, up 143% YoY. Infrastructure software grew 9%, a much slower pace than the segment's overall growth.

What is the outlook for the next quarter?

For Q3 fiscal 2026 (ending August 2, 2026), Broadcom guided to revenue of about $29.4 billion, up 84% YoY and roughly 52% above Q2. AI semiconductor revenue is expected to reach about $16.0 billion, growing more than 200%. Non-GAAP operating margin is guided to about 67% and Adjusted EBITDA margin to about 68%. These are forward-looking estimates, and actual results may differ materially.

How strong is the company's cash generation and balance sheet?

Q2 cash from operations was $10,493 million, with free cash flow of $10,262 million, or 46% of revenue. Cash and equivalents increased to $19,628 million from $14,174 million at the end of Q1. Total debt was about $64.9 billion ($2.3 billion short-term and $62.7 billion long-term). Q2 dividend payments were $3,092 million, and share repurchases were $600 million.

Why do GAAP and non-GAAP results differ so much?

Non-GAAP figures exclude amortization of acquisition-related intangibles ($1,967 million in Q2), stock-based compensation ($2,092 million), restructuring charges, acquisition costs, and related tax adjustments. For example, GAAP net income was $9,310 million versus $12,074 million non-GAAP. Management argues these items do not reflect underlying performance, but investors should evaluate both measures, since stock-based compensation and amortization are real economic costs.

What should investors know about the dividend?

The Board declared a quarterly cash dividend of $0.65 per share, payable June 30, 2026 to stockholders of record at 5:00 p.m. Eastern Time on June 22, 2026. The dividend is unchanged from the prior quarter and represents roughly $3.1 billion in cash per quarter at current share count. Q2 free cash flow of $10.3 billion covered this payout more than three times.

AVGO 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed June 3, 2026. Cited figures are marked; the original filing is the authoritative source.

Broadcom reported record second-quarter fiscal 2026 results (quarter ended May 3, 2026).

Net revenue rose 48% year over year to $22,187 million^a, driven by semiconductor solutions, which grew 79% to $15,009 million. Management said AI semiconductor revenue reached $10.8 billion, up 143% year over year. Infrastructure software grew a more modest 9% to $7,178 million.

Profitability was strong: GAAP net income was $9,310 million^b (GAAP diluted EPS $1.91, up 85%), and non-GAAP net income was $12,074 million (non-GAAP diluted EPS $2.44, up 54%). Adjusted EBITDA was $15,244 million, or 69% of revenue, and free cash flow was $10,262 million, or 46% of revenue. Cash and equivalents rose to $19,628 million from $14,174 million at the prior quarter-end.

The outlook is the most significant element for investors. Third-quarter fiscal 2026 revenue guidance is approximately $29.4 billion^c, up 84% year over year and about 52% above Q2 revenue. Management expects AI semiconductor revenue to exceed 200% growth, reaching about $16.0 billion.

Non-GAAP operating margin is guided to about 67%^d and Adjusted EBITDA margin to about 68%. Note that these projections are non-GAAP and management did not provide reconciliations to GAAP figures. Actual results could differ materially.

The Board declared a quarterly cash dividend of $0.65 per share, payable June 30, 2026 to holders of record on June 22, 2026. This is consistent with the prior quarter's payout of $3,092 million. Q2 share repurchases were modest at $600 million, compared with $7,850 million in Q1.

Total debt was approximately $64.9 billion at quarter-end, including $2.3 billion of short-term debt. Investors should monitor the pace of AI-driven growth, the sustainability of margins, and customer concentration, which the forward-looking statements flag as a risk.

02—Key points

Key Highlights

Q2 FY2026 net revenue of $22,187M, up 48% YoY and a record; semiconductor solutions up 79% to $15,009M, infrastructure software up 9% to $7,178M
AI semiconductor revenue of $10.8B in Q2, up 143% YoY and above management's internal forecast
GAAP operating income of $10,788M (up 85% YoY); non-GAAP operating income of $14,928M, roughly 67% of revenue
GAAP diluted EPS of $1.91 (up 85%) and non-GAAP diluted EPS of $2.44 (up 54%); Adjusted EBITDA of $15,244M (69% of revenue, up 52%)
Free cash flow of $10,262M (up 60% YoY), or 46% of revenue; cash from operations of $10,493M against capex of only $231M
Q3 FY2026 guidance: revenue of about $29.4B (up 84% YoY), AI semiconductor revenue of about $16.0B (over 200% growth), and non-GAAP operating margin of about 67%
Quarterly dividend of $0.65 per share declared, payable June 30, 2026 to holders of record on June 22, 2026

03—Questions

Frequently Asked Questions

What drove the strong revenue growth in Q2 fiscal 2026?
Revenue growth was led by the semiconductor segment, which rose 79% to $15.0 billion, mainly on AI demand. Management cited custom AI accelerators (XPUs) and AI networking. AI semiconductor revenue reached $10.8 billion, up 143% YoY. Infrastructure software grew 9%, a much slower pace than the segment's overall growth.
What is the outlook for the next quarter?
For Q3 fiscal 2026 (ending August 2, 2026), Broadcom guided to revenue of about $29.4 billion, up 84% YoY and roughly 52% above Q2. AI semiconductor revenue is expected to reach about $16.0 billion, growing more than 200%. Non-GAAP operating margin is guided to about 67% and Adjusted EBITDA margin to about 68%. These are forward-looking estimates, and actual results may differ materially.
How strong is the company's cash generation and balance sheet?
Q2 cash from operations was $10,493 million, with free cash flow of $10,262 million, or 46% of revenue. Cash and equivalents increased to $19,628 million from $14,174 million at the end of Q1. Total debt was about $64.9 billion ($2.3 billion short-term and $62.7 billion long-term). Q2 dividend payments were $3,092 million, and share repurchases were $600 million.
Why do GAAP and non-GAAP results differ so much?
Non-GAAP figures exclude amortization of acquisition-related intangibles ($1,967 million in Q2), stock-based compensation ($2,092 million), restructuring charges, acquisition costs, and related tax adjustments. For example, GAAP net income was $9,310 million versus $12,074 million non-GAAP. Management argues these items do not reflect underlying performance, but investors should evaluate both measures, since stock-based compensation and amortization are real economic costs.
What should investors know about the dividend?
The Board declared a quarterly cash dividend of $0.65 per share, payable June 30, 2026 to stockholders of record at 5:00 p.m. Eastern Time on June 22, 2026. The dividend is unchanged from the prior quarter and represents roughly $3.1 billion in cash per quarter at current share count. Q2 free cash flow of $10.3 billion covered this payout more than three times.

04—Continue

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