Broadcom (AVGO) reported revenue of $29.6 billion for its fiscal third quarter of 2026, which ended August 2, up 86% from a year earlier, as revenue from AI semiconductors rose 221% to $16.7 billion [1]. Free cash flow was $13.7 billion, or 46% of revenue [1]. The company guided fiscal fourth-quarter revenue to about $34.8 billion, up 93%, with AI chip revenue expected to reach $21.7 billion [1]. Even so, the stock slipped 2.7% the day after the report and fell 7.0% over the calendar third quarter, DataPorium data show [2].
What did Broadcom report for fiscal Q3 2026?
| Fiscal Q3 (quarter ended Aug 2) | 2026 | 2025 | Change |
|---|---|---|---|
| Net revenue | $29.59 billion | $15.95 billion | +86% |
| Semiconductor solutions revenue | $20.84 billion | $9.17 billion | +127% |
| Of which AI semiconductors | $16.7 billion | n/a | +221% |
| Infrastructure software revenue | $8.75 billion | $6.79 billion | +29% |
| GAAP operating income | $15.96 billion | $5.89 billion | +171% |
| Non-GAAP operating income | $20.10 billion | $10.46 billion | +92% |
| GAAP net income | $13.09 billion | $4.14 billion | +216% |
| GAAP diluted EPS | $2.68 | $0.85 | +215% |
| Non-GAAP diluted EPS | $3.32 | $1.69 | +96% |
| Cash flow from operations | $14.20 billion | $7.17 billion | +98% |
Source: Broadcom fiscal Q3 2026 results filed with the SEC on September 2, 2026 [1]. Non-GAAP figures exclude items such as stock-based compensation and amortization of acquired intangibles, as defined by Broadcom.
Semiconductors made up 70% of revenue, up from 57% a year earlier, and infrastructure software, mostly the VMware business Broadcom bought in 2023, made up 30% [1]. Revenue from semiconductors other than AI chips was about $4.1 billion, the difference between total semiconductor revenue and AI semiconductor revenue [1].
Why is Broadcom's AI revenue growing so fast?
Broadcom designs custom AI accelerators, chips built to order for large cloud and AI companies, and the networking chips that connect thousands of processors in AI data centers. Chief executive Hock Tan said "demand for our custom AI accelerators and networking continues to be very strong," with AI semiconductor revenue up 221% from a year earlier and 54% from the previous quarter [1]. That sequential growth implies AI chip revenue of roughly $10.8 billion in fiscal Q2 2026 [1].
The demand comes from the same buildout visible elsewhere. Oracle, one of the largest buyers of AI computing capacity, reported on September 10 that it delivered more than 300,000 GPUs to AI customers in its latest quarter and that its contract backlog had reached $664 billion [4]. Broadcom does not name its custom chip customers in its release [1].
How has Broadcom's revenue grown over the past year?
DataPorium financial data show how quickly revenue has climbed. Quarterly revenue went from $15.95 billion in the quarter ended in July 2025 to $18.02 billion, $19.31 billion, $22.19 billion and then $29.59 billion in the quarter ended in July 2026 [2]. The jump of $7.4 billion from fiscal Q2 to fiscal Q3 2026 was larger than any previous quarterly increase in that period [2].
Profitability rose with scale. Gross profit was $20.46 billion in fiscal Q3 2026, 69% of revenue, compared with 67% a year earlier, and net income rose from $4.14 billion to $13.09 billion [1][2]. With semiconductors rising from 57% to 70% of revenue over the year, the mix of Broadcom's business is shifting toward hardware, and its fiscal Q4 guidance keeps the non-GAAP operating margin near 66% [1].
What is Broadcom's guidance for fiscal Q4 2026?
For the fiscal fourth quarter, ending November 1, 2026, Broadcom expects revenue of about $34.8 billion, up 93% from a year earlier, and AI semiconductor revenue of $21.7 billion, up 236% [1]. It expects non-GAAP operating income of about 66% of revenue, the same margin as a year ago, according to chief financial officer Amie Thuener [1]. If the guidance is met, AI chips would make up about 62% of Broadcom's total revenue in the quarter, up from about 56% in fiscal Q3 [1].
| Measure | Fiscal Q3 2026 (actual) | Fiscal Q4 2026 (guidance) |
|---|---|---|
| Total revenue | $29.6 billion (+86%) | About $34.8 billion (+93%) |
| AI semiconductor revenue | $16.7 billion (+221%) | $21.7 billion (+236%) |
| Non-GAAP operating margin | About 68% | About 66% |
Source: Broadcom [1]; fiscal Q3 non-GAAP operating margin calculated as $20.10 billion divided by $29.59 billion.
How much cash is Broadcom generating?
Broadcom's business needs little capital spending compared with companies that build data centers. It spent $0.5 billion on capital expenditures in the quarter, leaving $13.7 billion of free cash flow from $14.2 billion of operating cash flow [1]. Cash and equivalents rose to $24.0 billion from $19.6 billion a quarter earlier [1]. It paid a dividend of $0.65 a share, $3.1 billion in total, on June 30 and declared another $0.65 dividend paid on September 30 [1].
The contrast with its customers is striking: Oracle spent $28.5 billion on capital expenditures in its latest quarter and had negative free cash flow, while suppliers such as Broadcom convert a large share of revenue into cash [1][4].
How did Broadcom stock react?
Broadcom reported after the market closed on September 2. DataPorium data show the stock closed at $367.24 that day and $357.16 on September 3, down 2.7% [2]. It ended the calendar third quarter at $351.19, down 7.0% from $377.75 on June 30, and was 27% below its 12-month high close of $481.57 on June 2, 2026 [2]. For 2026 through September, it was up 1.5% [2]. The S&P 500 information technology sector, by comparison, returned 7.2% in the third quarter [5]. The stock closed at $361.54 on October 9 [2].
Broadcom's fiscal Q3 2026 revenue rose 86% to $29.6 billion on $16.7 billion of AI chip sales, and it expects AI revenue to reach $21.7 billion in fiscal Q4.
Frequently asked questions
How much AI revenue did Broadcom report in fiscal Q3 2026?
Broadcom reported AI semiconductor revenue of $16.7 billion for the quarter ended August 2, 2026, up 221% from a year earlier [1].
What is Broadcom's revenue guidance for fiscal Q4 2026?
About $34.8 billion of revenue, up 93%, including $21.7 billion of AI semiconductor revenue, for the quarter ending November 1, 2026 [1].
Why did Broadcom stock fall after earnings?
The release does not explain stock moves. The shares fell 2.7% on September 3, 2026 and 7.0% over the third quarter, a period when the 10-year Treasury yield rose above 5% [2][3].
What is Broadcom's dividend?
Broadcom pays a quarterly dividend of $0.65 per share; it paid $3.1 billion in dividends on June 30, 2026 [1].
Sources & References
- [1] Broadcom, Broadcom Inc. Announces Third Quarter Fiscal Year 2026 Financial Results (Form 8-K exhibit 99.1, September 2, 2026)
- [2] DataPorium Broadcom (AVGO) stock page (prices and financial statements)
- [3] DataPorium Interest Rates (Treasury yields)
- [4] Oracle, Oracle Announces Q1 Results (September 10, 2026)
- [5] First Trust Portfolios, The Only Constant is Change (S&P 500 sector total returns, Q3 2026)
