Broadcom (AVGO) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached a record $29.6 billion, up 86% year-over-year, driven by explosive AI semiconductor and networking demand, with infrastructure software also contributing strongly.

• Q3 GAAP operating income was $16.0 billion, up 171% year-over-year; non-GAAP operating income was $20.1 billion, up 92% year-over-year.

• Net income for Q3 was $13.1 billion, up 215% year-over-year, with diluted EPS at $2.68 (GAAP) and $3.32 (non-GAAP), up 96% year-over-year.

• Free cash flow for Q3 was $13.7 billion, representing 46% of revenue, and cash from operations reached $14.2 billion.

• Board approved a quarterly dividend of $0.65 per share, totaling $3.1 billion.

Financial highlights

• Q3 consolidated revenue: $29.6 billion, up 86% year-over-year; product revenue more than doubled to $24.3 billion, subscriptions and services revenue grew 11% to $5.3 billion.

• Q3 operating income: $20.1 billion, up 92% year-over-year; operating margin: 67.9%.

• Q3 non-GAAP EPS: $3.32, up 96% year-over-year; GAAP diluted EPS: $2.68.

• Q3 gross margin: 75% (non-GAAP), 69% (GAAP); gross margin dollars: $22.2 billion (non-GAAP), $20.5 billion (GAAP).

• Cash and cash equivalents at quarter-end were $24.0 billion; working capital at $31.3 billion.

Outlook and guidance

• Q4 consolidated revenue expected at $34.8 billion, up 93% year-over-year.

• Q4 AI semiconductor revenue forecasted at $21.7 billion, up 236% year-over-year.

• Fiscal 2026 AI revenue expected at $58 billion, up 186% year-over-year; projected to double to $115 billion in 2027 and $230 billion in 2028.

• Q4 non-GAAP operating margin expected at 66%; gross margin at 73% due to higher XPU mix.

• Approximately 25% of $179.2 billion in remaining performance obligations is expected to be recognized as revenue over the next 12 months.