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Broadcom Inc. (AVGO) Reports Fiscal Q2 2026 Results: Revenue Doubles Year-Over-Year on AI Semiconductor Demand

Broadcom's 10-Q for the quarter ended May 3, 2026 discloses total net revenue of $22.2 billion, net income of $9.3 billion, and remaining performance obligations of approximately $164.6 billion, driven primarily by demand for custom AI accelerators.

Sourced from the primary SEC filing. 10-Q filed June 9, 2026 · SEC EDGAR ↗

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Summary

Broadcom Inc. filed its quarterly report on Form 10-Q for the fiscal quarter ended May 3, 2026, disclosing total net revenue of $22.2 billion — a 48% increase from $15.0 billion in the comparable prior-year quarter — with semiconductor solutions segment revenue rising 79% year-over-year to $15.0 billion. The company reported net income of $9.3 billion for the quarter, up from $5.0 billion a year earlier, while disclosing remaining performance obligations of approximately $164.6 billion, including a new long-term contract for custom AI accelerators. The filing also describes a post-quarter backstop arrangement of up to $29 billion related to AI rack deployment agreements entered on June 8, 2026, which management identifies as a potential source of credit and customer default risk.

Key metrics

Total net revenue
22,187USD m
+48%FY2026 Q2

Fiscal quarter ended May 3, 2026 versus fiscal quarter ended May 4, 2025.

Total net revenue
41,498USD m
+39%FY2026 H1

Two fiscal quarters ended May 3, 2026 versus two fiscal quarters ended May 4, 2025.

Products revenue
16,892USD m
+64%FY2026 Q2

Includes upfront license revenue of $1,964 million reclassified from subscriptions and services.

Products revenue
31,022USD m
FY2026 H1

Includes upfront license revenue of $3,719 million reclassified from subscriptions and services.

Subscriptions and services revenue
5,295USD m
+13%FY2026 Q2

Fiscal quarter ended May 3, 2026.

Subscriptions and services revenue
10,476USD m
+11%FY2026 H1

Two fiscal quarters ended May 3, 2026.

Semiconductor solutions segment revenue
15,009USD m
+79%FY2026 Q2

Increase attributed primarily to strong demand for custom AI accelerators and AI networking products.

Semiconductor solutions segment revenue
27,524USD m
+66%FY2026 H1

Two fiscal quarters ended May 3, 2026.

Infrastructure software segment revenue
7,178USD m
+9%FY2026 Q2

Increase attributed primarily to strong demand for VMware Cloud Foundation product.

Infrastructure software segment revenue
13,974USD m
+5%FY2026 H1

Two fiscal quarters ended May 3, 2026.

Gross margin
15,415USD m
FY2026 Q2

Fiscal quarter ended May 3, 2026.

Gross margin
28,572USD m
FY2026 H1

Two fiscal quarters ended May 3, 2026.

Gross margin as % of net revenue
69%
FY2026 Q2

Compared to 68% in the fiscal quarter ended May 4, 2025.

Gross margin as % of net revenue
69%
FY2026 H1

Compared to 68% in the two fiscal quarters ended May 4, 2025.

Operating income
10,788USD m
+85%FY2026 Q2

Fiscal quarter ended May 3, 2026; represents 49% of net revenue versus 39% in prior year period.

Operating income
19,351USD m
+60%FY2026 H1

Two fiscal quarters ended May 3, 2026; represents 47% of net revenue versus 40% in prior year period.

Semiconductor solutions segment operating income
9,281USD m
+93%FY2026 Q2

Fiscal quarter ended May 3, 2026.

Semiconductor solutions segment operating income
16,784USD m
+76%FY2026 H1

Two fiscal quarters ended May 3, 2026.

Infrastructure software segment operating income
5,647USD m
+13%FY2026 Q2

Fiscal quarter ended May 3, 2026.

Infrastructure software segment operating income
10,970USD m
+9%FY2026 H1

Two fiscal quarters ended May 3, 2026.

Net income
9,310USD m
+88%FY2026 Q2

Fiscal quarter ended May 3, 2026 versus $4,965 million in prior year period.

Net income
16,659USD m
+59%FY2026 H1

Two fiscal quarters ended May 3, 2026 versus $10,468 million in prior year period.

Diluted EPS
1.91USD
+85%FY2026 Q2

Fiscal quarter ended May 3, 2026 versus $1.03 in prior year period.

Diluted EPS
3.41USD
+57%FY2026 H1

Two fiscal quarters ended May 3, 2026 versus $2.17 in prior year period.

Basic EPS
1.96USD
FY2026 Q2

Fiscal quarter ended May 3, 2026 versus $1.05 in prior year period.

Basic EPS
3.51USD
FY2026 H1

Two fiscal quarters ended May 3, 2026 versus $2.23 in prior year period.

Research and development expense
2,995USD m
+11%FY2026 Q2

Increase primarily due to higher stock-based compensation.

Research and development expense
5,960USD m
+21%FY2026 H1

Two fiscal quarters ended May 3, 2026.

Selling, general and administrative expense
1,055USD m
-3%FY2026 Q2

Decrease reflects higher stock-based compensation largely offset by lower acquisition-related costs.

Selling, general and administrative expense
2,074USD m
+2%FY2026 H1

Two fiscal quarters ended May 3, 2026.

Interest expense
776USD m
FY2026 Q2

Fiscal quarter ended May 3, 2026 versus $769 million in prior year period.

Interest expense
1,577USD m
FY2026 H1

Two fiscal quarters ended May 3, 2026 versus $1,642 million in prior year period; decrease due to lower debt balances.

Provision for income taxes
820USD m
FY2026 Q2

Compared to $120 million in fiscal quarter ended May 4, 2025; increase primarily due to higher pretax income.

Provision for income taxes
1,666USD m
FY2026 H1

Compared to $107 million in two fiscal quarters ended May 4, 2025.

Stock-based compensation expense
2,092USD m
+18%FY2026 Q2

Compared to $1,771 million in prior year period; increase reflects full impact of Two-Year Equity Awards granted in Q2 FY2025.

Stock-based compensation expense
4,268USD m
+40%FY2026 H1

Two fiscal quarters ended May 3, 2026 versus $3,051 million in prior year period.

Amortization of acquisition-related intangible assets (total)
1,967USD m
FY2026 Q2

Includes amounts in both cost of revenue and operating expenses.

Amortization of acquisition-related intangible assets (total)
3,936USD m
FY2026 H1

Two fiscal quarters ended May 3, 2026.

Net cash provided by operating activities
18,753USD m
+48%FY2026 H1

Two fiscal quarters ended May 3, 2026 versus $12,668 million in prior year period.

Cash from operations (quarterly highlight)
10,493USD m
FY2026 Q2

Disclosed in quarterly highlights section of MD&A.

Cash and cash equivalents
19,628USD m
As of May 3, 2026

Compared to $16,178 million as of November 2, 2025.

Total assets
179,158USD m
As of May 3, 2026

Compared to $171,092 million as of November 2, 2025.

Total debt principal outstanding
66,720USD m
As of May 3, 2026

Compared to $67,120 million as of November 2, 2025.

Short-term debt
2,252USD m
As of May 3, 2026

Principal amounts payable within 12 months.

Long-term debt
62,655USD m
As of May 3, 2026

Compared to $61,984 million as of November 2, 2025.

Estimated fair value of debt
62,505USD m
As of May 3, 2026

Determined using quoted prices from less active markets; categorized as Level 2 instruments.

Goodwill
97,801USD m
As of May 3, 2026

Unchanged from November 2, 2025.

Intangible assets, net
28,333USD m
As of May 3, 2026

Decreased from $32,273 million as of November 2, 2025 due to ongoing amortization.

Total stockholders' equity
87,691USD m
As of May 3, 2026

Compared to $81,292 million as of November 2, 2025.

Working capital
23,351USD m
As of May 3, 2026

Increased from $13,059 million as of November 2, 2025.

Inventory
4,328USD m
As of May 3, 2026

Increased from $2,270 million as of November 2, 2025, primarily to support higher expected shipments for custom AI accelerators.

Trade accounts receivable, net
10,830USD m
As of May 3, 2026

Increased from $7,145 million as of November 2, 2025.

Contract assets
10,399USD m
As of May 3, 2026

Compared to $8,922 million as of November 2, 2025.

Contract liabilities
14,242USD m
As of May 3, 2026

Compared to $13,016 million as of November 2, 2025; approximately 64% related to contracts subject to termination for convenience.

Remaining performance obligations
164.6USD bn
As of May 3, 2026

Includes a new long-term contract for custom AI accelerators entered in Q2 FY2026; approximately 30% expected to be recognized as revenue over the next 12 months.

Dividends per share (quarterly)
0.65USD
FY2026 Q2

Compared to $0.59 in fiscal quarter ended May 4, 2025.

Dividends per share (half-year)
1.30USD
FY2026 H1

Compared to $1.18 in two fiscal quarters ended May 4, 2025.

Dividends paid to common stockholders
6,178USD m
FY2026 H1

Compared to $5,559 million in two fiscal quarters ended May 4, 2025.

Share repurchases
600USD m
FY2026 Q2

2 million shares repurchased and retired during fiscal quarter ended May 3, 2026.

Share repurchases
8,450USD m
FY2026 H1

25 million shares repurchased and retired during two fiscal quarters ended May 3, 2026; compared to $2,450 million in prior year period.

Remaining share repurchase authorization
10.1USD bn
As of May 3, 2026

Authorized under combined programs approved in April 2025 and March 2026.

Total unrecognized stock-based compensation cost
20,106USD m
As of May 3, 2026

Expected to be recognized over a remaining weighted-average service period of 3.0 years.

Shares outstanding
4,758m shares
As of May 3, 2026

Compared to 4,741 million shares as of November 2, 2025.

Top customer concentration (single distributor)
42%
FY2026 Q2

Direct sales to one semiconductor solutions distributor accounted for 42% of net revenue; same percentage for full H1 FY2026.

Top five end customers revenue concentration
45%
FY2026 Q2

Estimated aggregate sales through all channels; compared to approximately 40% in prior year period.

Distributor revenue as % of net revenue
56%
FY2026 H1

Sales to distributors as reported in MD&A customer concentration discussion.

Cash paid for interest
1,314USD m
FY2026 H1

Compared to $1,371 million in two fiscal quarters ended May 4, 2025.

Cash paid for income taxes
1,881USD m
FY2026 H1

Compared to $1,012 million in two fiscal quarters ended May 4, 2025.

Trade accounts receivable sold under factoring
600USD m
FY2026 Q2

Non-recourse factoring; compared to $1,750 million in fiscal quarter ended May 4, 2025.

Trade accounts receivable sold under factoring
2,350USD m
FY2026 H1

Non-recourse factoring; compared to $3,951 million in two fiscal quarters ended May 4, 2025.

Upfront license revenue included in products revenue
1,964USD m
FY2026 Q2

Reclassified presentation for software arrangements without termination for convenience provisions.

Upfront license revenue included in products revenue
3,719USD m
FY2026 H1

Two fiscal quarters ended May 3, 2026.

Americas total revenue
5,202USD m
FY2026 Q2

Compared to $4,706 million in fiscal quarter ended May 4, 2025.

Asia Pacific total revenue
14,535USD m
FY2026 Q2

Compared to $8,100 million in fiscal quarter ended May 4, 2025.

EMEA total revenue
2,450USD m
FY2026 Q2

Compared to $2,198 million in fiscal quarter ended May 4, 2025.

Backstop agreement maximum exposure (subsequent event)
29USD bn
Subsequent event – June 8, 2026

Maximum backstop exposure related to AI rack leases arranged with an investor partner; exposure increases as racks are deployed and decreases as customer makes payments.

Extracted from public filings. Figures are presented for educational purposes only.

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