Broadcom Booked $29.6 Billion in Three Months and Guided to $34.8 Billion for the Next

Broadcom reported net revenue of $29.591 billion for its third fiscal quarter of 2026, an 86% increase on the same quarter a year earlier. The company guided to approximately $34.8 billion for the fourth quarter, which would be a 93% year-over-year increase. Results were released on September 2.

Almost all of the growth is one line item. AI semiconductor revenue was $16.7 billion in the quarter, up 221% year over year and up 54% on the prior quarter alone. Broadcom expects that line to reach $21.7 billion in the fourth quarter, a 236% year-over-year increase.

The quarter in figures

• Net revenue: $29.591 billion, +86% year over year.
• Semiconductor Solutions: $20.839 billion, 70% of the total.
• Infrastructure Software: $8.752 billion, 30% of the total.
• AI semiconductor revenue: $16.7 billion, +221% year over year, +54% quarter over quarter.
• GAAP net income: $13.088 billion.
• Non-GAAP net income: $16.372 billion.
• Free cash flow: $13.665 billion, 46% of revenue.
• Quarterly dividend: $0.65 per share, payable September 30, 2026.

What the segment split now means

Broadcom has spent several years describing itself as two roughly comparable businesses: chips and enterprise software. That description is getting harder to sustain. Semiconductor Solutions is now 70% of revenue, and the AI portion of it — $16.7 billion — is on its own larger than the entire Infrastructure Software segment at $8.752 billion. On the guided fourth quarter, AI alone would be about 62% of total company revenue.

The 54% sequential jump is the number that distinguishes this from a normal growth quarter. Year-over-year comparisons flatter a business scaling from a small base; a 54% increase over three months does not. It means the shipping rate at the end of the quarter was materially above the rate at the start.

Demand for our custom AI accelerators and networking continues to be very strong.

Cash conversion

Free cash flow of $13.665 billion equals 46% of revenue. GAAP net income was $13.088 billion against non-GAAP net income of $16.372 billion, a $3.284 billion gap that reflects the items Broadcom excludes from its adjusted figures. The company also guided to a non-GAAP operating margin of approximately 66% of projected fourth-quarter revenue.

On how the release was received: secondary coverage reported that the record revenue did not lift the shares, framing the reaction as disappointment despite the topline. We could not verify a specific price move.

This article reports figures from a company earnings release and is not a recommendation to buy or sell any security.