Broadcom (AVGO) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 revenue reached a record $22.2 billion, up 48% year-over-year, driven by strong AI semiconductor demand.

• FY25 net revenue reached $63.9B, reflecting significant growth driven by both semiconductor and infrastructure software divisions.

• Q2 GAAP net income rose 88% to $9.3 billion; non-GAAP net income up 55% to $12.1 billion.

• Adjusted EBITDA reached $15.2 billion, 69% of revenue, up 52% year-over-year.

• Strategic partnerships and long-term agreements with major AI customers like Google, Anthropic, OpenAI, and Meta underpin future growth.

Financial highlights

• Q2 consolidated revenue: $22.2 billion, up 48% year-over-year; FY25 net revenue was $63,887M, up from $51,574M in FY24.

• Gross margin: 77.1% in Q2, down 230 bps year-over-year; non-GAAP gross margin improved to 76.5% in FY25.

• Operating income: $14.9 billion in Q2, up 52% year-over-year.

• Adjusted EBITDA: $15.2 billion (69% of revenue) in Q2; FY25 adjusted EBITDA (non-GAAP) rose to $43,004M.

• Free cash flow: $10.3 billion (46% of revenue) in Q2; FY25 free cash flow (non-GAAP) increased to $26,914M.

Outlook and guidance

• Q3 FY2026 consolidated revenue expected at $29.4 billion, up 84% year-over-year.

• Q3 semiconductor revenue forecast at $20.5 billion, up 124% year-over-year; AI semiconductor revenue at $16 billion, up over 200%.

• Q3 infrastructure software revenue expected at $8.9 billion, up 31% year-over-year.

• Q3 gross margin expected to decline to 74% due to product mix; operating margin stable at 67%.

• Full-year 2026 AI semiconductor revenue expected at $56 billion, up ~180% from 2025; 2027 AI revenue guidance reiterated at over $100 billion.