How did Broadcom (NASDAQ:AVGO) perform in Q2 FY26?

Broadcom reported $22.2 billion in revenue, up 48% year-over-year, driven primarily by its semiconductor segment. GAAP net income reached $9.3 billion ($1.91 per share), while non-GAAP net income climbed to $12.1 billion ($2.44 per share), highlighting strong operational performance.

What drove Broadcom’s revenue growth this quarter?

The surge was primarily fueled by AI semiconductor sales, which hit $10.8 billion, up 143% year-over-year, reflecting growing demand from cloud providers and data center operators.

How profitable is Broadcom now?

Broadcom delivered GAAP EPS of $1.91 and non-GAAP EPS of $2.44, with an adjusted EBITDA of $15.2 billion (69% of revenue). The company also generated $10.3 billion in free cash flow, showing very strong profitability and operational efficiency.

What are Broadcom’s margin trends?

Adjusted EBITDA margin came in at 69%, while free cash flow represented 46% of quarterly revenue, indicating high operational leverage and efficiency across its semiconductor and infrastructure segments.

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Broadcom Q2 revenue skyrockets 48% as AI semiconductor demand hits record highs

Q: What guidance did Broadcom give for Q3 FY26?

The company expects approximately $29.4 billion in revenue, up 84% year-over-year, with a non-GAAP operating margin of 67% and an adjusted EBITDA margin of 68%, reflecting continued strength in AI-driven demand.

Written by Jon CuthbertPublished Jun. 3 2026Last Updated Jun. 3 2026

Broadcom (NASDAQ:AVGO) reported strong financial results for the second quarter of fiscal year 2026, underscored by exceptional growth in its semiconductor segment.

The company recorded quarterly revenue of $22.2 billion, representing a 48% increase year-over-year.

Profitability remained a central highlight of the quarter.

Broadcom reported GAAP net income of $9.3 billion, with GAAP diluted earnings per share (EPS) of $1.91.

On a non-GAAP basis, net income reached $12.1 billion, with EPS of $2.44.

The company’s operational efficiency was reflected in its adjusted EBITDA of $15.2 billion, which accounted for 69% of total revenue.

Additionally, the company generated $10.3 billion in free cash flow, equivalent to 46% of its quarterly revenue.

The primary driver of the quarter’s performance was the artificial intelligence sector.

Revenue from AI semiconductors reached $10.8 billion, a 143% increase compared to the same period last year.

This rapid scaling demonstrates the company's deepening integration into the supply chains of major cloud providers and data center operators.

Looking ahead to the third quarter of fiscal 2026, Broadcom provided optimistic guidance.

The company anticipates revenue of approximately $29.4 billion—an 84% increase year-over-year—with a non-GAAP operating margin of 67% and an adjusted EBITDA margin of 68%.

In conjunction with the earnings announcement, the board of directors declared a quarterly dividend of $0.65 per share.

The dividend is payable on June 30, 2026, to shareholders of record as of June 22, 2026.