Broadcom Q3 2026: AI Revenue Hits $16.7 Billion, Up 221%
As seen on the 24/7 Wall St. homepage on September 2, 2026.
AI demand is now the whole story here: management guides to $21.7 billion in AI semiconductor revenue in the fourth quarter alone, up 236% year over year. Ignoring it means missing a nine quarter EPS streak still intact.
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Demand for custom AI accelerators and networking chips now defines the business: AI semiconductor revenue of $16.7 billion grew 221% year over year, lifting Semiconductor Solutions to 70% of total company revenue.
Adjusted non-GAAP EPS of $3.32 came in above the $3.24 consensus, extending a streak of beats that now runs nine straight quarters.
Free cash flow reached $13.66 billion in the quarter, equal to 46% of revenue, a conversion rate showing how little incremental capital the AI chip business requires relative to what it generates.
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Management guides Q4 AI semiconductor revenue to $21.7 billion, up 236% year over year. CEO Hock Tan stated plainly: "In Q4 the momentum continues, and we expect AI semiconductor revenue to accelerate to $21.7 billion, up 236% year-over-year."
Broadcom also declared a quarterly cash dividend of $0.65 per share, payable September 30 to shareholders of record as of September 21. The company separately unveiled VMware-based private AI cloud platforms ahead of the earnings release, a signal that it is working to broaden its AI revenue base beyond hyperscale custom chip contracts and into enterprise infrastructure.
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