Broadcom Q3 Revenue Jumps 86% to $29.6 Billion on AI Chip Demand

Broadcom Inc. (AVGO ) reported fiscal third-quarter 2026 revenue of $29.6 billion on September 2, 2026, an 86 percent increase from the prior-year period, driven by what the company described as very strong demand for its custom AI accelerators and networking products. The company’s earnings release covers the quarter ended August 2, 2026, and also includes fourth-quarter guidance and a quarterly dividend declaration.

GAAP operating income for the quarter was $16.0 billion, up 171 percent from $5.9 billion a year earlier, while non-GAAP operating income reached $20.1 billion, up 92 percent. GAAP net income was $13.1 billion, or $2.68 per diluted share, compared with $4.1 billion, or $0.85 per diluted share, in the same quarter of fiscal 2025. On a non-GAAP basis, net income was $16.4 billion, or $3.32 per diluted share.

“Demand for our custom AI accelerators and networking continues to be very strong. Q3 AI semiconductor revenue of $16.7 billion grew 221% year-over-year, and 54% quarter-over-quarter,” said Hock Tan, President and CEO of Broadcom Inc. Tan said the company expects AI semiconductor revenue to accelerate to $21.7 billion in the fourth quarter, up 236 percent year-over-year.

Segment and Cash Flow Detail

Semiconductor solutions generated $20.8 billion in revenue during the quarter, up 127 percent year-over-year and representing 70 percent of total net revenue. Infrastructure software contributed $8.8 billion, up 29 percent and accounting for the remaining 30 percent.

Cash flow from operations was $14.2 billion. After capital expenditures of $0.5 billion, free cash flow came to $13.7 billion, or 46 percent of revenue. Cash and cash equivalents stood at $24.0 billion at the end of the quarter, 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. “We delivered non-GAAP operating income growth of 92% year-over-year, as consolidated revenue grew 86% year-over-year to $29.6 billion,” Thuener said.

On June 30, 2026, the company paid a cash dividend of $0.65 per share, totaling $3.1 billion. The financing section of the cash flow statement also shows $5.6 billion in payments on debt obligations during the quarter, and the balance sheet lists long-term debt of $57.2 billion as of August 2, 2026, down from $62.0 billion at the end of fiscal 2025.

Fourth-Quarter Outlook and Dividend

For the fourth quarter of fiscal 2026, ending November 1, 2026, Broadcom guided to revenue of approximately $34.8 billion, an increase of 93 percent from the prior-year period. The company expects 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.

Broadcom stated that the guidance is only an estimate of what it believes is realizable as of the release date, that it is not readily able to provide a reconciliation of projected non-GAAP measures to projected GAAP measures without unreasonable effort, and that actual results may vary materially. The company said it undertakes no obligation to update the projections except as required by law.

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.

The company’s non-GAAP figures exclude amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring and other charges, acquisition-related costs, and non-GAAP tax reconciling adjustments. Stock-based compensation expense totaled $2.0 billion in the quarter, and amortization of acquisition-related intangible assets added approximately $2.0 billion to the GAAP-to-non-GAAP operating income reconciliation. Broadcom stated that these items should not be interpreted as non-recurring, infrequent or unusual, and that the non-GAAP measures should not be considered a substitute for, or superior to, GAAP measures.

Broadcom, headquartered in Palo Alto, California, designs, develops and supplies semiconductor and infrastructure software solutions. The company held a conference call to review the results at 2:00 p.m. Pacific Time on September 2, 2026.