10-Q · June 9, 2026
Broadcom Inc. reported strong results for Q2 2026, with revenue reaching $22.19 billion, exceeding prior quarter figures due to significant growth in semiconductor solutions. EPS stood at $2.44, surpassing expectations…
Earnings analysis · 10-Q
AVGO earnings analysis
Filed September 9, 2026 · Our reading of the company's report
The latest report
Broadcom delivered very strong third-quarter growth, with revenue of $29.591 billion, diluted EPS of $3.32 and free cash flow of $13.665 billion; each increased materially from both the prior quarter and prior year. AI…
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Broadcom delivered very strong third-quarter growth, with revenue of $29.591 billion, diluted EPS of $3.32 and free cash flow of $13.665 billion; each increased materially from both the prior quarter and prior year. AI semiconductor revenue of $16.7 billion, up 221% year over year, was the principal growth catalyst. The principal offsets are concentration in AI demand, customers and suppliers, alongside $61.079 billion of indebtedness and increasing exposure to leasing and alternative-financing models. The supplied 10-Q text does not provide a new explicit numeric outlook, although the accompanying earnings release cited approximately $34.8 billion of Q4 revenue.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.32
- Segment
- AI semiconductor revenue: $16.7 billion, up 221% year over year; other segment revenue not provided in the supplied filing text.
What stood out
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Revenue accelerated sharply
Revenue was $29.591 billion, up approximately 33.4% from $22.19 billion in the prior quarter and approximately 85.5% from $15.95 billion a year earlier.
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EPS growth remained exceptional
Reported diluted EPS was $3.32 versus $1.91 in the prior quarter and $0.85 a year earlier, increases of approximately 73.8% and 290.6%, respectively.
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AI semiconductor demand surged
AI semiconductor revenue reached $16.7 billion, increasing 221% year over year and representing approximately 56.4% of total revenue.
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Cash generation strengthened
Free cash flow was $13.665 billion, up from $10.26 billion in the prior quarter and $7.02 billion a year earlier.
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Debt balance declined
Borrowings declined to $61.1 billion as of August 2, 2026, from $67.1 billion at November 2, 2025; the company also reported a $56.0 billion estimated fair value of borrowings.
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Controls remained effective
Management reported effective disclosure controls as of August 2, 2026, and no material change in internal control over financial reporting during the period.
What to watch
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Customer and channel concentration
Customer concentration is significant: distributors represented 56% of net revenue for the three fiscal quarters ended August 2, 2026, while the top five end customers represented approximately 50%. A reduction, delay or cancellation in orders could therefore materially affect revenue and cash flow.
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AI spending concentration risk
AI demand may be cyclical and unsustainable: the filing warns of a potential AI spending bubble and states that customers could reduce, cancel or delay infrastructure plans. The risk is amplified because AI semiconductor revenue was $16.7 billion, or approximately 56.4% of quarterly revenue.
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Foundry and materials concentration
Supply-chain concentration remains substantial: approximately 95% of wafers manufactured by contract manufacturers during the first three fiscal quarters came from TSMC, and more than three-quarters of manufacturing materials were purchased from five suppliers. Capacity, pricing or geopolitical disruptions could pressure revenue and gross margin.
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Leverage and financing exposure
Indebtedness remains material at $61.079 billion as of August 2, 2026. A hypothetical 50-basis-point interest-rate change would alter the fair value of borrowings by approximately $1.7 billion, while financing guarantees or backstops could add counterparty and liquidity exposure.
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Trade and geopolitical uncertainty
The filing highlights worsening trade restrictions and geopolitical risk, particularly involving China, and states that tariffs had not yet materially affected results. It also notes that future restrictions could affect revenue, supply chain and the ability to manufacture or sell products.
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New AI financing models
The filing states that custom AI accelerator, XPU and AI-rack leasing models may increase counterparty credit risk and reduce gross margin or free cash flow. These arrangements could also impose backstops or guarantees and expose Broadcom to declines in underlying asset values.
Management's outlook
The filing text supplied does not include explicit quantitative guidance. The accompanying earnings release indicated approximately $34.8 billion of Q4 revenue and approximately 66% non-GAAP operating margin, but no prior outlook was provided for direction comparison.
Earlier filings 4
10-Q · March 11, 2026
Broadcom reported fiscal Q1 revenue of $19,311 million, up $4,395 million (29.5%) versus $14,916 million a year ago, with gross margin essentially stable at ~68.1% and operating margin expanding to 44.3%. Diluted EPS…
10-K · December 18, 2025
Broadcom emphasizes sustained technology leadership via heavy R&D and strategic acquisitions to deliver category-leading semiconductor and infrastructure software solutions, including AI data center products. Recent…
10-Q · September 10, 2025
Broadcom reported a strong quarter: revenue rose to $15,952 million (from $13,072 million a year earlier) with gross margin of 67.1% and operating margin of 36.9%. GAAP diluted EPS from continuing operations was $0.85…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.