Broadcom reported financial results for its fiscal third quarter of 2026 on September 2, 2026, posting record revenue of $29.6 billion, up 86 percent from the prior-year period, as AI semiconductor revenue reached $16.7 billion, according to the company’s earnings release.
The company, a Delaware corporation headquartered in Palo Alto, California, that designs, develops and supplies semiconductor and infrastructure software solutions, said the quarter ended August 2, 2026. GAAP operating income was $16.0 billion and non-GAAP operating income was $20.1 billion. GAAP net income totaled $13,088 million, up 216 percent from a year earlier, while non-GAAP net income rose 95 percent to $16,372 million. GAAP diluted earnings per share were $2.68, compared with non-GAAP diluted earnings per share of $3.32.
AI Semiconductor Revenue
President and Chief Executive Officer Hock Tan said demand for Broadcom’s custom AI accelerators and networking “continues to be very strong.” AI semiconductor revenue of $16.7 billion grew 221 percent year-over-year and 54 percent quarter-over-quarter, Tan said, adding that the company expects AI semiconductor revenue to accelerate to $21.7 billion in the fourth quarter, up 236 percent year-over-year.
In its second-quarter release on June 3, 2026, Broadcom had guided third-quarter revenue to approximately $29.4 billion, an increase of 84 percent, and said it expected AI semiconductor revenue to grow more than 200 percent year-over-year to $16.0 billion. For the second quarter ended May 3, 2026, the company had reported revenue of $22,187 million, up 48 percent, with AI semiconductor revenue of $10.8 billion, up 143 percent year-over-year.
Segment Results and Cash Flow
Semiconductor solutions generated $20,839 million in the third quarter, or 70 percent of total net revenue, an increase of 127 percent from the prior-year period. Infrastructure software contributed $8,752 million, or 30 percent of revenue, up 29 percent. GAAP gross margin was $20,456 million for the quarter, compared with $10,703 million a year earlier.
Cash flow from operations was $14.2 billion and, after capital expenditures of $0.5 billion, free cash flow was $13.7 billion, or 46 percent of revenue. Free cash flow rose 95 percent from $7,024 million in the prior-year period, while cash flow from operations grew 98 percent from $7,166 million. Cash and cash equivalents ended the quarter at $24.0 billion, compared with $19.6 billion at the end of the prior fiscal quarter.
Chief Financial Officer Amie Thuener said Broadcom achieved record revenue, operating profit and free cash flow in the quarter, delivering non-GAAP operating income growth of 92 percent year-over-year as consolidated revenue grew 86 percent to $29.6 billion.
The company’s non-GAAP measures exclude amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring and other charges, acquisition-related costs, and non-GAAP tax reconciling adjustments. Total stock-based compensation expense was $2,019 million for the quarter.
For the three fiscal quarters ended August 2, 2026, net revenue totaled $71,089 million, compared with $45,872 million for the same period a year earlier.
Fourth Quarter Outlook and Dividend
For the fourth quarter of fiscal 2026, ending November 1, 2026, Broadcom guided revenue to approximately $34.8 billion, an increase of 93 percent from the prior-year period, with non-GAAP operating income of approximately 66 percent of projected revenue. Thuener said the company expects to maintain its non-GAAP operating margin at 66 percent, flat from a year ago. The company cautioned that the guidance is an estimate of what it believes is realizable as of the release date, that actual results will vary, and that the variations may be material.
The Board of Directors approved a quarterly cash dividend of $0.65 per share, payable on September 30, 2026, to stockholders of record at the close of business on September 21, 2026. On June 30, 2026, the company paid a cash dividend of $0.65 per share, totaling $3.1 billion.
Broadcom said it would host a conference call at 2:00 p.m. Pacific Time on September 2, 2026, to review the results and discuss the business outlook, with an audio replay available for one year through the Investors section of the company’s website.
