Broadcom Inc. (AVGO) Q3 2026 Financial Results Summary
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Broadcom Inc. (AVGO) Q3 2026: Revenue Soars 86% YoY — Strong Performance
Broadcom Inc. (Nasdaq: AVGO) reported impressive financial results for the third quarter of fiscal year 2026, showcasing significant growth across key metrics. The company achieved revenue of $29.6 billion, reflecting an increase of $13.6 billion or 86% compared to the same quarter last year. This robust performance is indicative of Broadcom's strong market position and demand for its semiconductor and infrastructure software solutions.
Key Financial Metrics
- Revenue: $29.6 billion, up $13.6 billion or +86% YoY
- GAAP Operating Income: $16.0 billion
- Non-GAAP Operating Income: $20.1 billion
- GAAP Diluted EPS: $2.68
- Non-GAAP Diluted EPS: $3.32
- Cash from Operations: $14.2 billion
- Free Cash Flow: $13.7 billion, or 46% of revenue
- Quarterly Dividend: $0.65 per share
Analyst View
This quarter is undoubtedly a positive outcome for shareholders. The substantial revenue growth of 86% year-over-year not only highlights Broadcom's ability to capitalize on market trends, particularly in AI semiconductor demand, but also reflects effective operational management. The company reported a 92% increase in non-GAAP operating income, further emphasizing its operational efficiency and profitability.
The reported GAAP diluted EPS of $2.68 and non-GAAP diluted EPS of $3.32 are also noteworthy, as they indicate strong earnings performance. The free cash flow of $13.7 billion represents a significant 95% increase from the previous year, showcasing Broadcom's ability to generate cash effectively, which is crucial for funding future growth initiatives and returning capital to shareholders.
Dividend and Guidance
Broadcom's Board of Directors declared a quarterly cash dividend of $0.65 per share, payable on September 30, 2026. This consistent return of capital to shareholders is a positive signal of the company's financial health and commitment to shareholder value.
Looking ahead, Broadcom provided guidance for the fourth quarter of fiscal year 2026, projecting revenue of approximately $34.8 billion, which would represent a remarkable 93% increase from the prior year period. Additionally, the company expects to maintain a non-GAAP operating margin of approximately 66% of projected revenue, indicating strong profitability moving forward.
Forward Catalyst
Investors should closely monitor Broadcom's performance in the upcoming quarter, particularly the anticipated growth in AI semiconductor revenue, which is expected to reach $21.7 billion, up 236% year-over-year. This growth trajectory in a high-demand sector could further enhance Broadcom's market position and financial performance.
In conclusion, Broadcom's Q3 2026 results reflect a strong operational performance and a favorable outlook for the future. The combination of significant revenue growth, robust cash flow generation, and a commitment to returning capital to shareholders positions Broadcom as a compelling investment opportunity in the technology sector.
Here are the extracted tables from the press release:
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
Note: All amounts are in millions.
| Fiscal Quarter Ended | August 2, 2026 | May 3, 2026 | August 3, 2025 | Fiscal Quarter Ended | August 2, 2026 | August 3, 2025 |
|---|---|---|---|---|---|---|
| Net Revenue | $29,591 | $22,100 | $15,952 | Net Revenue | $71,089 | $45,800 |
| Cost of Revenue | $7,624 | $5,301 | $3,704 | Cost of Revenue | $17,604 | $10,200 |
| Amount of Acquisition Intangible Assets | $1,499 | $1,461 | $1,519 | Amount of Acquisition Intangible Assets | $4,422 | $4,486 |
| Research and Development Charges | $12 | $10 | $26 | Research and Development Charges | $35 | $68 |
| Total Cost of Revenue | $9,135 | $6,772 | $5,249 | Total Cost of Revenue | $22,061 | $14,800 |
| Gross Margin | $20,456 | $15,400 | $10,703 | Gross Margin | $49,028 | $31,000 |
| Research and Development | $2,895 | $2,995 | $3,050 | Research and Development | $8,855 | $7,996 |
| Selling, General and Administrative | $996 | $1,055 | $1,072 | Selling, General and Administrative | $3,070 | $3,104 |
| Amount of Acquisition Intangible Assets | $507 | $506 | $507 | Amount of Acquisition Intangible Assets | $1,520 | $1,524 |
| Research and Other Charges | $103 | $71 | $187 | Research and Other Charges | $277 | $445 |
| Total Operating Expenses | $4,501 | $4,627 | $4,816 | Total Operating Expenses | $13,722 | $13,069 |
| Operating Income | $15,955 | $10,700 | $5,887 | Operating Income | $35,306 | $17,931 |
| Interest Expense | -$778 | -$776 | -$807 | Interest Expense | -$2,355 | -$2,400 |
| Other Income, Net | $98 | $118 | $205 | Other Income, Net | $649 | $333 |
| Income Before Income Taxes | $15,275 | $10,100 | $5,285 | Income Before Income Taxes | $33,600 | $15,864 |
| Provision for Income Taxes | $2,187 | $820 | $1,145 | Provision for Income Taxes | $3,853 | $1,252 |
| Net Income | $13,088 | $9,310 | $4,140 | Net Income | $29,747 | $14,612 |
| Net Income per Share - Basic | $2.75 | $1.96 | $0.88 | Net Income per Share - Basic | $6.26 | $3.10 |
| Net Income per Share - Diluted | $2.68 | $1.91 | $0.85 | Net Income per Share - Diluted | $6.09 | $3.02 |
| Weighted Shares Used in per Share Calculation - Basic | 4,766 | 4,747 | 4,714 | Weighted Shares Used in per Share Calculation - Basic | 4,752 | 4,705 |
| Weighted Shares Used in per Share Calculation - Diluted | 4,887 | 4,876 | 4,860 | Weighted Shares Used in per Share Calculation - Diluted | 4,884 | 4,841 |
| Stock Compensation Expense - Cost of Revenue | $224 | $223 | $251 | Stock Compensation Expense - Cost of Revenue | $683 | $607 |
| Stock Compensation Expense - Research and Development | $1,344 | $1,395 | $1,573 | Stock Compensation Expense - Research and Development | $4,186 | $3,564 |
| Stock Compensation Expense - Selling, General and Administrative | $451 | $474 | $498 | Stock Compensation Expense - Selling, General and Administrative | $1,418 | $1,202 |
| Total Stock Compensation Expense | $2,019 | $2,092 | $2,322 | Total Stock Compensation Expense | $6,287 | $5,373 |
CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED
Note: All amounts are in millions.
| August 2, 2026 | November 2, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $23,975 | $16,178 |
| Trade accounts receivable, net | $13,707 | $7,145 |
| Inventory | $4,523 | $2,270 |
| Other current assets | $9,968 | $5,980 |
| Total current assets | $52,173 | $31,573 |
| Long-term assets: | ||
| Property, plant and equipment, net | $3,144 | $2,530 |
| Goodwill | $97,801 | $97,801 |
| Intangible assets, net | $26,325 | $32,273 |
| Other long-term assets | $8,705 | $6,915 |
| Total assets | $188,148 | $171,092 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $4,000 | $1,560 |
| Employee compensation and benefits | $1,506 | $2,129 |
| Short-term debt | $2,252 | $3,152 |
| Other current liabilities | $13,080 | $11,673 |
| Total current liabilities | $20,838 | $18,514 |
| Long-term liabilities: | ||
| Long-term debt | $57,167 | $61,984 |
| Other long-term liabilities | $10,453 | $9,302 |
| Total liabilities | $88,458 | $89,800 |
| Stockholders’ equity: | ||
| Preferred stock | $0 | $0 |
| Common Stock | $5 | $5 |
| Additional paid-in capital | $77,330 | $71,308 |
| Retained earnings | $22,151 | $9,761 |
| Accumulated other comprehensive income | $204 | $218 |
| Total stockholders' equity | $99,690 | $81,292 |
| Total liabilities and equity | $188,148 | $171,092 |
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