Broadcom Reports Record Q3 Earnings Driven by Strong AI Semiconductor Demand
Broadcom (AVGO) reported record financial results for its third quarter of fiscal 2026, driven primarily by strong demand in the artificial intelligence semiconductor market. Consolidated revenue reached $29.6 billion, up 86% year over year, with non-GAAP operating income at $20.1 billion and diluted EPS rising to $3.32—a 96% increase from last year. AI-related revenue totaled $16.7 billion in the quarter, representing a massive 221% annual growth rate and accounting for nearly two-thirds of total sales. The company raised its fiscal 2026 AI revenue guidance to $58 billion (up from $56 billion) and outlined an ambitious long-term trajectory projecting AI revenue could reach $230 billion by fiscal 2028. This growth is supported by secured supply agreements with major players like Google, Anthropic, and OpenAI for large-scale TPU and XPU deployments over the next few years. Despite strong top-line performance, Broadcom warned of margin pressures due to increasing memory content in XPUs and bottlenecks related to AI data center infrastructure. Management also highlighted capital expenditures plans to expand semiconductor capacity.
Topics: AI semiconductors free cash flow operating income revenue growth