Broadcom Revenue Jumps 86% to $29.591 Billion as AI Chip Sales Grow 221%
Key Facts
Broadcom said on September 2, 2026, that revenue was $29.591 billion in the fiscal third quarter ended August 2, up 86% from $15.952 billion in the same period a year earlier. The jump came as revenue from artificial intelligence-related semiconductors reached $16.7 billion, up 221% year over year and 54% sequentially. Chief Executive Hock Tan said demand for custom accelerators and AI networking remained strong. The figures put AI activity at the forefront of the company’s expansion, while total revenue growth exceeded growth in its software and infrastructure business. The fiscal quarter ended August 2, before the results were announced in September.
Growth extended beyond chips: the semiconductor solutions segment posted revenue of $20.839 billion, up 127% year over year, while infrastructure software revenue was $8.752 billion, up 29%. The revenue breakdown shows increases across both of the company’s businesses, with semiconductor solutions growing faster than software. The company reported revenue of $22.187 billion in the fiscal second quarter, up 48% from a year earlier, according to its previous results. In that quarter, AI semiconductor revenue was $10.8 billion, up 143% year over year, and Tan said it exceeded the company’s expectations. By comparison, AI revenue rose to $16.7 billion in the third quarter as annual growth accelerated to 221%.
In June, the company had forecast consolidated third-quarter revenue of $29.4 billion, up 84% year over year, before reporting actual revenue of $29.591 billion and growth of 86%. It had also expected AI semiconductor revenue of $16 billion and annual growth above 200%; it reported $16.7 billion and growth of 221%. In its earlier explanation of growth in this business, Broadcom linked the increase to stronger demand for custom accelerators and AI networking. These factors, Tan said, continue to support demand for the company’s products in the third quarter. The results exceeding the earlier guidance provide a measure of performance against management’s expectations announced in June.
On earnings, Broadcom reported GAAP operating income of $15.955 billion and net income of $13.088 billion. Diluted earnings per share were $2.68, while free cash flow reached $13.665 billion. The company reported these figures for the same quarter in which revenue rose 86% year over year. The numbers show the scale of cash and operating income accompanying sales growth during the period. Management’s outlook for the next quarter was for revenue well above the third-quarter total, with continued focus on its AI semiconductor business.
Tan said that "momentum continues into the fourth quarter," and the company forecast AI semiconductor revenue of $21.7 billion, up 236% year over year. Chief Financial Officer Amy Thunor estimated fourth-quarter consolidated revenue at about $34.8 billion, up 93% year over year, with an expected non-GAAP operating margin of 66%. But that guidance was below analysts’ average estimate of $35.03 billion, according to Reuters. Reuters said intense competition could limit the company’s gains in custom processors. The market therefore met the outlook with caution despite third-quarter revenue growth and an expected acceleration in AI business.
The outlook was reflected in trading after the results: Broadcom shares fell 3.6% to $353.97 in after-hours trading on September 2, after ending the regular session down 0.7% at $367.24, according to Dow Jones Newswires. On September 3, the Associated Press reported that the stock fell 2.7% after the revenue forecast came in below expectations. This immediate reaction in September differs from the later share-price moves recorded in EL7 data: the stock closed at $323.24 on October 22, $321.68 on October 23, then $329.17 on October 26 and $342.33 on October 27. The stock closed at $351.81 on October 28, according to EL7 data. The October closes are separate in time from the immediate reaction following the September results announcement.