Broadcom Inc. (AVGO) announced its financial results for the fiscal second quarter ending May 3, 2026, on Wednesday. The company reported year-over-year growth in revenue and earnings, and provided guidance for the upcoming quarter that exceeded consensus estimates, though its shares declined in after-hours trading following the release.
For the second quarter, Broadcom reported revenue of $22.19 billion, an increase of 48% from the same period last year. This figure was slightly below the LSEG consensus forecast of $22.27 billion. The company’s adjusted earnings per share (EPS) rose 54% to $2.44, surpassing analyst expectations of $2.40 per share, according to LSEG data.
Adjusted EBITDA, a measure of operating profitability, was $15.24 billion for the quarter, a 52% increase year-over-year. This result exceeded the FactSet consensus estimate of $15.06 billion.
The company’s performance was detailed across its two primary operating segments. The Semiconductor Solutions segment generated $15 billion in revenue, a 78.5% year-over-year increase, exceeding FactSet expectations of $14.7 billion. Within this segment, AI-related semiconductor revenue grew 143% to $10.8 billion. The Infrastructure Software segment reported revenue of $7.18 billion, below Wall Street estimates of $7.32 billion.
During the company’s earnings call, CEO Hock Tan reiterated previous financial targets, including delivering $56 billion in AI semiconductor revenue in fiscal year 2026 and at least $100 billion in fiscal year 2027. Management also stated it booked over $30 billion in AI semiconductor orders during the quarter.
Tan discussed several customer initiatives, including agreements with Google parent Alphabet, Anthropic, OpenAI, and Meta Platforms for the development and supply of AI-related hardware. He also announced the creation of an AI special purpose vehicle (SPV) in partnership with Apollo and Blackstone. The company stated the SPV is designed to provide debt financing to facilitate Broadcom’s chip sales.
For its upcoming third fiscal quarter, Broadcom issued revenue guidance of approximately $29.4 billion, which is above the LSEG consensus estimate of $28.54 billion. The company projects third-quarter semiconductor revenue to be $20.5 billion, including $16 billion from AI products. The infrastructure software segment is forecast to generate $8.9 billion in revenue. Projected adjusted EBITDA for the third quarter is approximately $19.99 billion, compared to analyst estimates of $19.39 billion.
