Broadcom crushed Q1 FY2026 expectations with record revenue of $19.31 billion (+29% YoY), Non-GAAP EPS of $2.05 (vs. $2.02 estimated), and AI semiconductor revenue surging 106% YoY to $8.4 billion. The stock jumped approximately 5-6% in after-hours trading on the back of blowout Q2 guidance of $22.0 billion, far exceeding the consensus estimate of ~$20.4 billion.
About Broadcom Inc.
Broadcom Inc. (NASDAQ: AVGO) is a global technology leader headquartered in Palo Alto, California, that designs, develops, and supplies semiconductor and infrastructure software solutions for the world’s most complex, mission-critical needs. The company traces its origins to the founding of Broadcom Corporation in 1991 by Henry Samueli and Henry Nicholas at UCLA, though the current entity was formed through Avago Technologies’ $37 billion acquisition of Broadcom Corporation in 2016.
Today, Broadcom operates across two primary segments: Semiconductor Solutions (custom AI accelerators, networking switches, broadband, storage) and Infrastructure Software (largely driven by the 2023 VMware acquisition). As of early March 2026, the company commands a market capitalization of approximately $1.51 trillion, a trailing P/E ratio of roughly 62-67x, and a dividend yield of approximately 0.76-0.82%. Broadcom employs approximately 33,000 people worldwide and has delivered 16 consecutive years of dividend growth.
Top Financial Highlights
- Total revenue for Q1 FY2026 reached $19,311 million, reflecting a 29% year-over-year increase from $14,916 million.
- GAAP net income was $7,349 million, marking a 34% increase from $5,503 million in Q1 FY2025.
- Non-GAAP net income totaled $10,185 million, a 30% increase from $7,823 million in the prior year.
- GAAP diluted EPS came in at $1.50, up 32% year-over-year from $1.14, indicating strong earnings growth.
- Non-GAAP diluted EPS was $2.05, reflecting a 28% increase from $1.60 in Q1 FY2025.
- GAAP gross margin reached $13,157 million, or 68.1% of revenue, highlighting solid profitability.
- Non-GAAP gross margin totaled $14,868 million, or 77% of revenue, reflecting strong operational efficiency.
- Operating income (GAAP) was $8,563 million, with an operating margin of 66.4%, underscoring robust operational performance.
- Adjusted EBITDA amounted to $13,128 million, representing 68% of revenue and a 30% increase year-over-year.
- Cash from operations totaled $8,260 million, reflecting a 35% year-over-year increase.
- Free cash flow reached $8,010 million, representing 41% of revenue and a 33% increase from the prior year.
- Semiconductor solutions revenue was $12,515 million, accounting for 65% of total revenue and a 52% year-over-year increase.
- Infrastructure software revenue stood at $6,796 million, making up 35% of total revenue, with a modest 1% year-over-year increase.
- AI semiconductor revenue surged to $8.4 billion, marking an impressive 106% year-over-year growth.
- Cash and cash equivalents as of the quarter-end stood at $14,174 million, providing strong liquidity.
- Q2 FY2026 revenue guidance is approximately $22.0 billion, reflecting a 47% year-over-year increase.
- A quarterly dividend of $0.65 per share will be payable on March 31, 2026.
- A new $10 billion share repurchase program has been authorized through December 31, 2026, supporting shareholder returns.
Beat or Miss?
Broadcom delivered a clean beat across all key metrics in Q1 FY2026. Notably, the Q2 revenue guidance of $22.0 billion crushed the consensus estimate of approximately $20.4 billion, signaling accelerating momentum.
| Metric | Reported | Estimated (Consensus) | Difference |
| Revenue | $19.31B | $19.18B–$19.21B | Beat by ~$130-170M (+0.5–0.9%) |
| Non-GAAP EPS | $2.05 | $2.02–$2.03 | Beat by $0.02-$0.03 (+1.0–1.5%) |
| Adjusted EBITDA Margin | 68% | 67% (prior guidance) | Beat by ~100 bps |
| AI Semiconductor Revenue | $8.4B | ~$8.0B (implied by guidance) | Beat by ~$0.4B |
| Q2 Revenue Guidance | ~$22.0B | ~$20.40B (consensus) | Beat by ~$1.6B (+7.8%) |
What Leadership Is Saying?
Hock Tan, President and CEO of Broadcom Inc.: “Broadcom achieved record first quarter revenue on continued strength in AI semiconductor solutions. Q1 AI revenue of $8.4 billion grew 106% year-over-year, above our forecast, driven by robust demand for custom AI accelerators and AI networking. Our AI revenue growth is accelerating, and we expect AI semiconductor revenue to be $10.7 billion in Q2.”
Kirsten Spears, CFO of Broadcom Inc.: “Consolidated revenue grew 29% year-over-year to a record $19.3 billion. Adjusted EBITDA increased 30% year-over-year to a record $13.1 billion, representing 68% of revenue. In Q2 we expect revenue growth to increase 47% year-over-year to $22.0 billion, with adjusted EBITDA of 68%. Consistent with our commitment to return excess cash to shareholders, we returned $10.9 billion in the first quarter through $3.1 billion of cash dividends and $7.8 billion of stock repurchases.”
Historical Performance
Broadcom YoY Comparison
| Category | Q1 FY2026 | Q1 FY2025 | Change (%) |
| Total Revenue | $19,311M | $14,916M | +29% |
| GAAP Net Income | $7,349M | $5,503M | +34% |
| Non-GAAP Net Income | $10,185M | $7,823M | +30% |
| GAAP Diluted EPS | $1.50 | $1.14 | +32% |
| Non-GAAP Diluted EPS | $2.05 | $1.60 | +28% |
| Adjusted EBITDA | $13,128M | $10,083M | +30% |
| Cash from Operations | $8,260M | $6,113M | +35% |
| Free Cash Flow | $8,010M | $6,013M | +33% |
| Total Operating Expenses (GAAP) | $4,594M | $3,885M | +18% |
| Semiconductor Solutions Revenue | $12,515M | $8,212M | +52% |
| Infrastructure Software Revenue | $6,796M | $6,704M | +1% |
The semiconductor segment was the dominant growth driver, fueled by AI revenue that more than doubled year-over-year to $8.4 billion. Infrastructure software, while still a substantial 35% of total revenue, grew only 1% YoY as VMware integration reached a more normalized cadence.
Competitor YoY Comparison
The following table compares the most recent quarterly results of Broadcom’s key semiconductor peers. Note that fiscal year-end dates differ: Broadcom’s Q1 FY2026 ended February 2026, NVIDIA’s Q4 FY2026 ended January 2026, AMD’s Q4 2025 ended December 2025, and Intel’s Q4 2025 ended December 2025.
NVIDIA (Q4 FY2026 vs. Q4 FY2025)
| Category | Q4 FY2026 (Jan 2026) | Q4 FY2025 (Jan 2025) | Change (%) |
| Revenue | $68,127M | $39,331M | +73% |
| GAAP Net Income | $43,000M | $22,100M | +94% |
| GAAP Gross Margin | 75.00% | 73.00% | +2.0 ppts |
| GAAP Diluted EPS | $1.76 | $0.89 | +98% |
AMD (Q4 2025 vs. Q4 2024)
| Category | Q4 2025 (Dec 2025) | Q4 2024 (Dec 2024) | Change (%) |
| Revenue | $10,300M | $7,700M | +34% |
| GAAP Net Income | $1,511M | $482M | +213% |
| GAAP Gross Margin | 54% | 51% | +3 ppts |
| GAAP Diluted EPS | $0.92 | $0.29 | +217% |
Intel (Q4 2025 vs. Q4 2024)
| Category | Q4 2025 (Dec 2025) | Q4 2024 (Dec 2024) | Change (%) |
| Revenue | $13,674M | $14,260M | -4% |
| GAAP Net Income (Loss) | $(591)M | $(126)M | N/M (deeper loss) |
| GAAP Gross Margin | 36.10% | 39.20% | -3.1 ppts |
| GAAP Diluted EPS | ($0.12) | ($0.03) | N/M |
Among its major semiconductor peers, Broadcom’s 29% revenue growth and 34% GAAP net income growth position it as a top performer, second only to NVIDIA’s 73% revenue surge. AMD showed strong recovery with 34% revenue growth and a tripling of net income, while Intel continued to struggle with declining revenue and persistent net losses.
How the Market Reacted?
Broadcom’s Q1 FY2026 results sparked a strong positive reaction across markets. Shares surged approximately 5.3% in after-hours trading on March 4, 2026, climbing from the regular-session close of $317.53 to around $334.25, with an intraday after-hours range of $308 to $336.18. By the following trading session on March 5, the stock extended gains to approximately +6.4%, trading around $337.80 and adding roughly $90 billion to the company’s market capitalization, pushing it to approximately $1.50 trillion.
Sources
