Broadcom Posts $29.6 Billion Revenue on 86% Growth
The chipmaker guided fourth-quarter sales to about $34.8 billion, implying 93% year-over-year growth.
Broadcom Inc. (AVGO) reported third-quarter revenue of $29.6 billion, up 86% from a year earlier, as year-over-year growth accelerated for a second consecutive quarter after 48% in the prior period and 29% two quarters earlier.
The semiconductor and infrastructure software company said demand for custom AI accelerators and networking remained very strong. President and Chief Executive Officer Hock Tan said AI semiconductor revenue of $16.7 billion grew 221% year-over-year and 54% quarter-over-quarter.
That AI line had been $10.8 billion in the second quarter, up 143% from a year earlier, and $8.4 billion in the first quarter, up 106%. Tan said the company expects AI semiconductor revenue to accelerate to $21.7 billion in the fourth quarter, up 236% year-over-year.
Semiconductor solutions, the larger reportable segment, generated $20.8 billion, or 70% of revenue, up 127% from a year earlier. That mix had been 68% of revenue in the second quarter and 65% two quarters earlier. Infrastructure software contributed $8.8 billion, or 30% of revenue, up 29% from a year earlier.
GAAP operating income was $16.0 billion, up 171% from a year earlier. Non-GAAP operating income was $20.1 billion, up 92%, and equaled 68% of revenue, compared with 67% in the second quarter. GAAP diluted earnings were $2.68 a share, up 215% from a year earlier. Non-GAAP diluted earnings were $3.32 a share, up 96%.
Cash from operations was $14.2 billion. After $0.5 billion of capital expenditures, free cash flow was $13.7 billion, or 46% of revenue. Cash and cash equivalents were $24.0 billion at quarter-end. The board approved a quarterly dividend of $0.65 a share, payable Sept. 30 to holders of record Sept. 21.
For the fourth quarter, ending Nov. 1, 2026, Broadcom guided revenue of approximately $34.8 billion, an increase of 93% from the prior-year period. Third-quarter guidance had been approximately $29.4 billion, implying 84% year-over-year growth.
Non-GAAP operating income for the fourth quarter is guided at approximately 66% of projected revenue, below the 67% third-quarter outlook. Chief Financial Officer Amie Thuener said the company expects to maintain its non-GAAP operating margin at 66%, flat from a year ago.
The company said the guidance is only an estimate of what it believes is realizable as of the release date.