Broadcom Inc. (AVGO) Earnings Call Transcripts

Broadcom Inc.'s Latest Earnings Call - Q2 FY2026

In the second quarter of fiscal year 2026, Broadcom Inc. reported record revenue of $22.2 billion, reflecting a 48% year-on-year increase, driven primarily by AI semiconductor sales, which reached $10.8 billion, up 143% year-on-year. The company's operating margin was stable at 67%, and adjusted EBITDA was a record 69% of revenue. Management raised guidance for Q3, expecting consolidated revenue of $29.4 billion, up 84% year-on-year, with AI semiconductor revenue projected to accelerate to $16 billion, up over 200% year-on-year, indicating strong momentum in the AI sector.

Reported metrics

Guidance from management

Broadcom expects Q3 2026 consolidated revenue of $29.4 billion, up 84% year-on-year, with semiconductor revenue projected at approximately $20.5 billion, up 124% year-on-year. AI semiconductor revenue is expected to accelerate to $16 billion, up over 200% year-on-year.

What management said

Yes. Certainly, as our semiconductor business grows, just to reiterate, on a consolidated basis relative to our software business, you're going to have a decline in margins, right, a bit, right? You'll have compression. But remember that we're -- it's accretive because we have strong operating leverage, right? So our operating margins will stand up a bit over time to that. Within semiconductors, we've always said o...

I mean, Ross, as Kirsten said in her remarks, structurally, the semiconductor margins remains very stable and very solid. It's the mix -- particularly the mix between software and non-AI to the very, very high -- rapidly growing AI semiconductor that is just diluting gross margin.

What analysts pressed on

Analysts expressed concerns regarding the sustainability of AI semiconductor growth and the impact of gross margin compression due to the shift in revenue mix. There were questions about the visibility of future demand and the ability to secure supply for increasing orders.

Main topics on the call

• Record Revenue Growth — Broadcom achieved a record revenue of $22.2 billion in Q2 2026, up 48% year-on-year, exceeding guidance. CEO Hock Tan stated, "Driving this growth was AI semiconductor revenue at a record $10.8 billion, up 143% year-on-y...
• AI Semiconductor Demand — Management highlighted insatiable demand for AI semiconductors, with bookings exceeding $30 billion against shipments of $10.8 billion. Hock Tan noted, "In the second half of 2026, we expect AI semiconductor revenue to d...
• Guidance Increase — For Q3 2026, Broadcom raised its revenue guidance to $29.4 billion, up 84% year-on-year, with semiconductor revenue expected to be approximately $20.5 billion, up 124% year-on-year. This reflects strong growth expectatio...
• Stable Margins Despite Revenue Mix — Despite a decline in gross margin to approximately 74% due to product mix, operating margin is expected to remain stable at 67%. Kirsten Spears stated, "This decline in gross margin does not represent a structural change...

Read the full Broadcom Inc. transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 44 Broadcom Inc. earnings call transcripts on record, spanning March 12, 2020 to June 3, 2026. Based on this history, Broadcom Inc. reports quarterly. The most recent call on file is dated June 3, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

AVGO

Exchange

NasdaqGS

Country

US

Sector

Information Technology

Industry

Semiconductors and Semiconductor Equipment

Calls on record

44

First call

March 12, 2020

Most recent

June 3, 2026

Reporting cadence

quarterly