Broadcom reported record fiscal Q2 2026 revenue of $22.2 billion, up 48% year-over-year, fueled by accelerating demand for AI infrastructure. The company generated $15.0 billion in semiconductor revenue, up 79% from a year earlier, while infrastructure software revenue increased 9% to $7.2 billion. GAAP net income reached $9.3 billion, up 88%, and non-GAAP net income rose 55% to $12.1 billion.
AI remained the primary growth driver. Broadcom reported AI semiconductor revenue of $10.8 billion in the quarter, up 143% year-over-year and above previous expectations. CEO Hock Tan said demand continues to accelerate for both custom AI accelerators and AI networking products. Broadcom now expects AI semiconductor revenue to reach approximately $16 billion in fiscal Q3, representing growth of more than 200% compared to the same period last year.
The company generated $10.5 billion in operating cash flow and $10.3 billion in free cash flow during the quarter. Broadcom ended the quarter with $19.6 billion in cash and equivalents and issued guidance for fiscal Q3 revenue of approximately $29.4 billion, representing 84% year-over-year growth. The company also maintained expectations for non-GAAP operating margin of approximately 67% and adjusted EBITDA margin of approximately 68%.
- Q2 FY2026 revenue: $22.2 billion (+48% YoY)
- Semiconductor revenue: $15.0 billion (+79% YoY)
- Infrastructure software revenue: $7.2 billion (+9% YoY)
- AI semiconductor revenue: $10.8 billion (+143% YoY)
- GAAP net income: $9.3 billion (+88% YoY)
- Non-GAAP net income: $12.1 billion (+55% YoY)
- Free cash flow: $10.3 billion (+60% YoY)
- Adjusted EBITDA: $15.2 billion (69% margin)
- Q3 FY2026 revenue guidance: $29.4 billion (+84% YoY)
- Q3 AI semiconductor revenue forecast: approximately $16.0 billion (+200% YoY)
“Broadcom achieved record revenue, operating profit and free cash flow in Q2 driven by accelerating growth in AI semiconductor revenue and strong operating leverage. Q2 semiconductor revenue from AI of $10.8 billion grew 143% year-over-year, above our forecast, driven by increasing demand for custom AI accelerators and AI networking,” said Hock Tan, President and CEO of Broadcom.
🌐 Analysis: Broadcom’s results reinforce its position as one of the primary beneficiaries of hyperscaler AI infrastructure spending. The company’s AI networking portfolio, including Tomahawk switches, Jericho fabrics, optical interconnect technologies, and custom AI accelerator programs, continues to expand alongside demand for large-scale AI clusters. The $10.8 billion in quarterly AI semiconductor revenue exceeds the annual revenue of many semiconductor companies. record fiscal Q2 2026 revenue of $22.2 billion, up 48% year-over-year, fueled by accelerating demand for AI infrastructure. The company generated $15.0 billion in semiconductor revenue, up 79% from a year earlier, while infrastructure software revenue increased 9% to $7.2 billion. GAAP net income reached $9.3 billion, up 88%, and non-GAAP net income rose 55% to $12.1 billion.
AI remained the primary growth driver. Broadcom reported AI semiconductor revenue of $10.8 billion in the quarter, up 143% year-over-year and above previous expectations. CEO Hock Tan said demand continues to accelerate for both custom AI accelerators and AI networking products. Broadcom now expects AI semiconductor revenue to reach approximately $16 billion in fiscal Q3, representing growth of more than 200% compared to the same period last year.
The company generated $10.5 billion in operating cash flow and $10.3 billion in free cash flow during the quarter. Broadcom ended the quarter with $19.6 billion in cash and equivalents and issued guidance for fiscal Q3 revenue of approximately $29.4 billion, representing 84% year-over-year growth. The company also maintained expectations for non-GAAP operating margin of approximately 67% and adjusted EBITDA margin of approximately 68%.
- Q2 FY2026 revenue: $22.2 billion (+48% YoY)
- Semiconductor revenue: $15.0 billion (+79% YoY)
- Infrastructure software revenue: $7.2 billion (+9% YoY)
- AI semiconductor revenue: $10.8 billion (+143% YoY)
- GAAP net income: $9.3 billion (+88% YoY)
- Non-GAAP net income: $12.1 billion (+55% YoY)
- Free cash flow: $10.3 billion (+60% YoY)
- Adjusted EBITDA: $15.2 billion (69% margin)
- Q3 FY2026 revenue guidance: $29.4 billion (+84% YoY)
- Q3 AI semiconductor revenue forecast: approximately $16.0 billion (+200% YoY)
“Broadcom achieved record revenue, operating profit and free cash flow in Q2 driven by accelerating growth in AI semiconductor revenue and strong operating leverage. Q2 semiconductor revenue from AI of $10.8 billion grew 143% year-over-year, above our forecast, driven by increasing demand for custom AI accelerators and AI networking,” said Hock Tan, President and CEO of Broadcom.
🌐 Analysis: Broadcom’s results reinforce its position as one of the primary beneficiaries of hyperscaler AI infrastructure spending. The company’s AI networking portfolio, including Tomahawk switches, Jericho fabrics, optical interconnect technologies, and custom AI accelerator programs, continues to expand alongside demand for large-scale AI clusters. The $10.8 billion in quarterly AI semiconductor revenue exceeds the annual revenue of many semiconductor companies.
