Latest quarter
Broadcom reported Q3 FY2026 revenue of $29.6 billion, compared with $16.0 billion in Q3 FY2025, representing growth of 85.5%. The company’s revenue of $29.6 billion was above the consensus of $29.5 billion by 0.41%. Broadcom reported adjusted EPS, as the consensus counts it, of $3.32, above the $3.22 consensus by 3.11%, while GAAP diluted EPS was $2.68 versus $0.85 a year earlier.
Broadcom’s filing attributed higher semiconductor-solutions revenue to demand for networking solutions, primarily custom AI accelerators and AI networking products. The filing attributed infrastructure-software growth primarily to demand for VMware Cloud Foundation and additional license revenue on contracts without customer termination rights. Gross margin was 69.1%, compared with 67.1% a year earlier, and operating margin was 53.9%, compared with 36.9%. Broadcom reported free cash flow of $13.7 billion, versus $7.0 billion a year earlier. The company reported revenue within its prior guidance of approximately $29.4 billion.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $29.6 billion | $16.0 billion | 85.5% |
| Diluted EPS | $2.68 | $0.85 | 215.3% |
| Gross margin | 69.1% | 67.1% | 2.0 percentage points |
| Operating margin | 53.9% | 36.9% | 17.0 percentage points |
| Free cash flow | $13.7 billion | $7.0 billion | 94.5% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $3.32 | $3.22 | Beat by 3.11% |
| Revenue | $29.6 billion | $29.5 billion | In line |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
| Against its own guidance | For | Guided | Reported | Result |
|---|---|---|---|---|
| Revenue | Q3 FY2026 | $29.4 billion | $29.6 billion | Within the guide |
Revenue came in within or above the company’s guide in 6 of the last 6 quarters it guided.
What management said on the call
No earnings-call transcript or call commentary is available for Broadcom’s latest quarter.
In its filing, Broadcom said semiconductor-solutions revenue increased from demand for networking solutions, primarily custom AI accelerators and AI networking products. The filing said infrastructure-software revenue increased primarily from VMware Cloud Foundation demand and additional license revenue on contracts where customers do not have termination rights. Broadcom’s filing said most new software contracts no longer had termination-for-convenience provisions as of the fiscal quarter ended August 2, 2026. The company also disclosed that its top five end customers accounted for approximately 55% of quarterly net revenue and said it expects significant customer concentration to continue.
Guidance
Broadcom expects Q4 FY2026 revenue of approximately $34.8 billion, compared with its previous Q3 FY2026 revenue guidance of approximately $29.4 billion. The company expects Q4 FY2026 AI semiconductor revenue of $21.7 billion. Broadcom expects Q4 FY2026 non-GAAP operating income of approximately 66.0% of projected revenue, compared with its previous Q3 FY2026 guidance of approximately 67.0%.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Revenue, Ai semiconductor | Q4 FY2026 | $21.7 billion | — | New |
| Operating income growth, non-GAAP | Q4 FY2026 | 66.0% | Q3 FY2026: 67.0% | Cut |
| Revenue | Q4 FY2026 | $34.8 billion | Q3 FY2026: $29.4 billion; reported $29.6 billion | Raised |
| Dividend, Annual common stock dividend per share | FY2026 | $2.60 | — | New |
How analysts reacted
Analysts’ price targets: $350.00 to $660.00, $525.00 on average (as of 18 October 2026).
Rating and price-target actions since the results on 2 September 2026:
| Firm | Date | Action | Rating | Target |
|---|---|---|---|---|
| JP Morgan | 20 October 2026 | target raise | — | $580.00 |
| KeyBanc | 12 October 2026 | reiterate | outperform | $575.00 |