Broadcom Reports Record Q3 Earnings Driven by Strong AI Semiconductor Demand
Broadcom Inc. (NASDAQ:AVGO) reported record third-quarter fiscal 2026 results, driven primarily by surging demand for artificial intelligence semiconductors and custom accelerators. Revenue rose 86% year over year to $29.6 billion, with AI semiconductor revenue reaching $16.7 billion—accounting for 56% of total company sales. Free cash flow hit a record high at $13.7 billion (46% of revenue), and operating income increased by 92% to $20.1 billion. The Semiconductor Solutions segment, which accounts for 70% of consolidated revenue, delivered $20.8 billion in sales—up 127% year over year. Broadcom also announced strong customer commitments from Google, Anthropic, OpenAI, and Meta but warned that deployment could be constrained by data-center readiness, power availability, wafers, substrates, and high-bandwidth memory. Looking ahead, the company forecasts fourth-quarter AI semiconductor revenue of $21.7 billion (up 236% year over year) with long-term projections reaching up to $230 billion in fiscal 2028.
Topics: AI Semiconductors Free Cash Flow Market Demand Revenue Growth