Fabless chip and software maker Broadcom (NASDAQ:AVGO) reported revenue ahead of Wall Street’s expectations in Q1 CY2026, with sales up 47.9% year on year to $22.19 billion. On top of that, next quarter’s revenue guidance ($29.4 billion at the midpoint) was surprisingly good and 4.1% above what analysts were expecting. Its non-GAAP profit of $2.44 per share was 1.8% above analysts’ consensus estimates.
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Broadcom (AVGO) Q1 CY2026 Highlights:
Revenue: $22.19 billion vs analyst estimates of $22.06 billion (47.9% year-on-year growth, 0.6% beat)
Adjusted EPS: $2.44 vs analyst estimates of $2.40 (1.8% beat)
Adjusted EBITDA: $15.24 billion vs analyst estimates of $15.15 billion (68.7% margin, 0.6% beat)
Revenue Guidance for Q2 CY2026 is $29.4 billion at the midpoint, above analyst estimates of $28.24 billion
Operating Margin: 48.6%, up from 38.8% in the same quarter last year
Free Cash Flow Margin: 46.3%, up from 42.7% in the same quarter last year
Inventory Days Outstanding: 58, in line with the previous quarter
Market Capitalization: $2.28 trillion
“Broadcom achieved record revenue, operating profit and free cash flow in Q2 driven by accelerating growth in AI semiconductor revenue and strong operating leverage. Q2 semiconductor revenue from AI of $10.8 billion grew 143% year-over-year, above our forecast, driven by increasing demand for custom AI accelerators and AI networking,” said Hock Tan, President and CEO of
Company Overview
Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ:AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, Broadcom’s 24.2% annualized revenue growth over the last five years was incredible. Its growth surpassed the average semiconductor company and shows its offerings resonate with customers, a great starting point for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions (which can sometimes offer opportune times to buy).
Broadcom Quarterly Revenue
Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore’s Law) could make yesterday’s hit product obsolete today. Broadcom’s annualized revenue growth of 33.1% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.
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