AVGO

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Earnings Call

Mar 3, 2026

Q1 FY2026

EPS Estimate

2.03

EPS Actual

2.05

Post-Earnings Close

$359.93

Earnings Reaction

-11.4%

Overview

Broadcom delivered a record-breaking Q1 FY2026, with consolidated revenue of $19.3 billion, up 29% year-over-year and ahead of the $19.2 billion consensus, driven by AI semiconductor revenue that surged 106% YoY to $8.4 billion, well above the ~$8 billion expected. Non-GAAP adjusted EBITDA reached $13.1 billion, or 68% of revenue, exceeding the 67% guidance target. EPS came in at $2.17 on a non-GAAP basis, beating the $2.03 estimate. The results underscore Broadcom's unique positioning at the intersection of two secular trends: the hyperscaler AI infrastructure buildout and the enterprise software modernization cycle, with the VMware integration continuing to provide high-margin ballast at 93% gross margin in the software segment.

Key Themes

Segment momentum and mix

The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several

Segment momentum and mix

The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several

Segment momentum and mix

The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several

Segment momentum and mix

The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several

Notable Quotes

“We are confident in the trajectory of the business and the investments we are making across the portfolio, and we expect the momentum we saw this quarter to carry into the back half of the year.”

Chief Executive Officer

“We are confident in the trajectory of the business and the investments we are making across the portfolio, and we expect the momentum we saw this quarter to carry into the back half of the year.”

Report generated on Apr 4, 2026

AI-generated earnings analysis. Not investment advice.

Q&A Summary

The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.

AVGO

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Overview

Q&A Summary