Broadcom Q3 2026: AI Revenue Hits $16.7 Billion, Up 221%

As seen on the 24/7 Wall St. homepage on September 2, 2026.

AVGO Broadcom
Q3 2026
EPS
$3.32
est $3.24 +2.5%
Revenue
$29.59B
est $29.44B +0.5%

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.

Continue ReadingShow less

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.

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.

Mentioned: AVGO