EX-99.1 2 avgo-05032026x8kxex99.htm EX-99.1 Document
Exhibit 99.1
                                        
Broadcom Inc. Announces Second Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend

•Revenue of $22,187 million for the second quarter, up 48 percent from the prior year period
•GAAP net income of $9,310 million for the second quarter; Non-GAAP net income of $12,074 million for the second quarter
•Adjusted EBITDA of $15,244 million for the second quarter, or 69 percent of revenue
•GAAP diluted EPS of $1.91 for the second quarter; Non-GAAP diluted EPS of $2.44 for the second quarter
•Cash from operations of $10,493 million for the second quarter, less capital expenditures of $231 million, resulted in $10,262 million of free cash flow, or 46 percent of revenue
•Quarterly common stock dividend of $0.65 per share
•Third quarter fiscal year 2026 revenue guidance of approximately $29.4 billion, an increase of 84 percent from the prior year period
•Third quarter fiscal year 2026 Non-GAAP operating income guidance of approximately 67 percent of projected revenue (1)
•Third quarter fiscal year 2026 Adjusted EBITDA guidance of approximately 68 percent of projected revenue (1)

PALO ALTO, Calif. – June 3, 2026 – Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its second quarter of fiscal year 2026, ended May 3, 2026, provided guidance for its third quarter of fiscal year 2026 and announced its quarterly dividend.

“Broadcom achieved record revenue, operating profit and free cash flow in Q2 driven by accelerating growth in AI semiconductor revenue and strong operating leverage. Q2 semiconductor revenue from AI of $10.8 billion grew 143% year-over-year, above our forecast, driven by increasing demand for custom AI accelerators and AI networking,” said Hock Tan, President and CEO of Broadcom Inc. “The momentum continues and in Q3 we expect semiconductor revenue from AI to grow over 200 percent year-over-year to $16.0 billion.”

“Q2 consolidated revenue grew 48% year-over-year to a record $22.2 billion. Adjusted EBITDA increased 52% year-over-year to a record $15.2 billion, representing 69% of revenue,” said Kirsten Spears, CFO of Broadcom Inc. “In Q3 we expect consolidated revenue growth to increase 84% year-over-year to $29.4 billion, with non-GAAP operating margin stable at 67% reflecting our strong operating leverage.”


________________________________
(1) The Company is not readily able to provide a reconciliation of projected non-GAAP financial measures presented to the relevant projected GAAP measures without unreasonable effort.

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Second Quarter Fiscal Year 2026 Financial Highlights
GAAPNon-GAAP
(Dollars in millions, except per share data)Q2 26Q2 25ChangeQ2 26Q2 25Change
Net revenue$22,187 $15,004 +48%$22,187 $15,004 +48%
Net income$9,310 $4,965 +88%$12,074 $7,787 +55%
Earnings per common share - diluted$1.91 $1.03 +85%$2.44 $1.58 +54%
(Dollars in millions)Q2 26Q2 25Change
Cash flow from operations$10,493 $6,555 +60%
Adjusted EBITDA$15,244 $10,001 +52%
Free cash flow$10,262 $6,411 +60%
Net revenue by segment
(Dollars in millions)Q2 26Q2 25Change
Semiconductor solutions$15,009 68%$8,408 56%+79%
Infrastructure software7,178 326,596 44+9%
Total net revenue$22,187 100%$15,004 100%

The Company’s cash and cash equivalents at the end of the fiscal quarter were $19,628 million, compared to $14,174 million at the end of the prior fiscal quarter.

During the second fiscal quarter, the Company generated $10,493 million in cash from operations and spent $231 million on capital expenditures, resulting in $10,262 million of free cash flow.

On March 31, 2026, the Company paid a cash dividend of $0.65 per share, totaling $3,092 million.

The differences between the Company’s GAAP and non-GAAP results are described generally under “Non-GAAP Financial Measures” below and presented in detail in the financial reconciliation tables attached to this release.

Third Quarter Fiscal Year 2026 Business Outlook

Based on current business trends and conditions, the outlook for the third quarter of fiscal year 2026, ending August 2, 2026, is expected to be as follows:

•Third quarter revenue guidance of approximately $29.4 billion;
•Third quarter non-GAAP operating income guidance of approximately 67 percent of projected revenue;
•Third quarter Adjusted EBITDA guidance of approximately 68 percent of projected revenue.

The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. The Company is not readily able to provide a reconciliation of projected non-GAAP financial measures to the relevant projected GAAP measures without unreasonable effort. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.
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Quarterly Dividends

The Board of Directors of Broadcom has approved a quarterly cash dividend of $0.65 per share. The dividend is payable on June 30, 2026 to stockholders of record at the close of business (5:00 p.m. Eastern Time) on June 22, 2026.

Financial Results Conference Call

Broadcom Inc. will host a conference call to review its financial results for the second quarter of fiscal year 2026 and to discuss the business outlook today at 2:00 p.m. Pacific Time.

To Listen via Internet: The conference call can be accessed live online in the Investors section of the Broadcom website at https://investors.broadcom.com/.

Replay: An audio replay of the conference call can be accessed for one year through the Investors section of Broadcom’s website at https://investors.broadcom.com/.

Non-GAAP Financial Measures

The non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. When possible, a reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release. The Company is not readily able to provide a reconciliation of projected non-GAAP measures to the comparable GAAP measures without unreasonable effort. Broadcom believes non-GAAP financial information provides additional insight into the Company’s on-going performance. Therefore, Broadcom provides this information to investors for a more consistent basis of comparison and to help them evaluate the results of the Company’s on-going operations and enable more meaningful period to period comparisons.

In addition to GAAP reporting, Broadcom provides investors with net income, operating income, gross margin, operating expenses, cash flow and other data on a non-GAAP basis. This non-GAAP information excludes amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring and other charges, acquisition-related costs, including integration costs, non-GAAP tax reconciling adjustments, and other adjustments. Management does not believe that these items are reflective of the Company’s underlying performance. Internally, these non-GAAP measures are significant measures used by management for purposes of evaluating the core operating performance of the Company, establishing internal budgets, calculating return on investment for development programs and growth initiatives, comparing performance with internal forecasts and targeted business models, strategic planning, evaluating and valuing potential acquisition candidates and how their operations compare to the Company’s operations, and benchmarking performance externally against the Company’s competitors. The exclusion of these and other similar items from Broadcom’s non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent or unusual.

Free cash flow measures have limitations as they omit certain components of the overall cash flow statement and do not represent the residual cash flow available for discretionary expenditures. Investors should not consider presentation of free cash flow measures as implying that stockholders have any right
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to such cash. Broadcom’s free cash flow may not be calculated in a manner comparable to similarly named measures used by other companies.

About Broadcom

Broadcom Inc. (NASDAQ: AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations’ complex, mission-critical needs. Broadcom combines long-term R&D investment with superb execution to deliver the best technology, at scale. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, visit www.broadcom.com.

Cautionary Note Regarding Forward-Looking Statements

This announcement contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning Broadcom. These statements include, but are not limited to, statements that address our expected future business and financial performance, our plans and expectations with regard to our share repurchases, and other statements identified by words such as “will,” “expect,” “believe,” “anticipate,” “estimate,” “should,” “intend,” “plan,” “potential,” “predict,” “project,” “aim,” and similar words, phrases or expressions. These forward-looking statements are based on current expectations and beliefs of Broadcom’s management, current information available to Broadcom’s management, and current market trends and market conditions and involve risks and uncertainties that may cause actual results to differ materially from those contained in these forward-looking statements. Accordingly, undue reliance should not be placed on such statements.

Particular uncertainties that could materially affect future results include risks associated with: global economic conditions and uncertainty; government regulations, trade restrictions and trade tensions; global political and economic conditions relating to our international operations; cyclicality in the semiconductor industry undergoing profound change due to AI; any loss of our significant customers and fluctuations in the timing and volume of significant customer demand; the slow or unsuccessful return on our research and development investments, expansion of our business strategy or adoption of new business models; our dependence on contract manufacturing and outsourced supply chain; our dependency on a limited number of suppliers; our ability to continue winning business in the semiconductor solutions industry; our ability to accurately estimate customers’ demand and adjust our manufacturing and supply chain accordingly; dependence on senior management and our ability to attract and retain qualified personnel; our ability to maintain or improve gross margin; our ability to protect against cybersecurity threats and a breach of security systems; prolonged disruptions of our, our customers’ or our suppliers’ facilities or other significant operations; our ability to maintain appropriate manufacturing capacity and quality; dependence on and risks associated with distributors and other channel partners of our products; ability of our software portfolio to manage and secure IT infrastructures and environments; demand for our data center virtualization products and customer acceptance of our software, services and business strategy; competitiveness of our software solutions and compatibility of our software with operating environments, platforms or third-party products; our ability to enter into satisfactory software license agreements; use of open source software in our software and services; sales to government customers; our ability to manage our software solutions and services lifecycles; our competitive performance; quarterly and annual fluctuations in operating results; any acquisitions or dispositions we may make, such as delays, challenges and expenses associated with receiving governmental and regulatory approvals and satisfying other closing conditions, and with
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integrating acquired businesses with our existing businesses and our ability to achieve the benefits, growth prospects and synergies expected by such acquisitions; involvement in legal proceedings; our ability to protect our intellectual property and the unpredictability of any associated litigation expenses; any expenses or reputational damage associated with resolving customer product warranty and indemnification claims, or other undetected defects or bugs; our compliance with privacy and data security laws; corporate responsibility matters; our provision for income taxes and overall cash tax costs; our ability to maintain tax concessions in certain jurisdictions; potential tax liabilities as a result of acquiring VMware; our significant indebtedness and the need to generate sufficient cash flows to service and repay such debt; the amount and frequency of our share repurchase program; and other events and trends on a national, regional, industry-specific and global scale, including those of a political, economic, business, competitive and regulatory nature.

Our filings with the SEC, which are available without charge at the SEC’s website at https://www.sec.gov, discuss some of the important risk factors that may affect our business, results of operations and financial condition. Actual results may vary from the estimates provided. We undertake no intent or obligation to publicly update or revise any of the estimates and other forward-looking statements made in this announcement, whether as a result of new information, future events or otherwise, except as required by law.

Contact:
Ji Yoo
Broadcom Inc.
Investor Relations
650-427-6000
investor.relations@broadcom.com

(AVGO-Q)

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BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
(IN MILLIONS, EXCEPT PER SHARE DATA)
Fiscal Quarter EndedTwo Fiscal Quarters Ended
May 3,
2026		February 1,
2026		May 4,
2025		May 3,
2026		May 4,
2025
Net revenue$22,187 $19,311 $15,004 $41,498 $29,920 
Cost of revenue:
Cost of revenue5,301 4,679 3,296 9,980 6,569 
Amortization of acquisition-related intangible assets1,461 1,462 1,483 2,923 2,967 
Restructuring charges10 13 28 23 42 
Total cost of revenue6,772 6,154 4,807 12,926 9,578 
Gross margin15,415 13,157 10,197 28,572 20,342 
Research and development2,995 2,965 2,693 5,960 4,946 
Selling, general and administrative1,055 1,019 1,083 2,074 2,032 
Amortization of acquisition-related intangible assets506 507 506 1,013 1,017 
Restructuring and other charges71 103 86 174 258 
Total operating expenses4,627 4,594 4,368 9,221 8,253 
Operating income10,788 8,563 5,829 19,351 12,089 
Interest expense(776)(801)(769)(1,577)(1,642)
Other income, net118 433 25 551 128 
Income before income taxes10,130 8,195 5,085 18,325 10,575 
Provision for income taxes820 846 120 1,666 107 
Net income$9,310 $7,349 $4,965 $16,659 $10,468 
Net income per share:
Basic$1.96 $1.55 $1.05 $3.51 $2.23 
Diluted$1.91 $1.50 $1.03 $3.41 $2.17 
Weighted-average shares used in per share calculations:
Basic4,747 4,741 4,707 4,744 4,701 
Diluted4,876 4,888 4,826 4,882 4,831 
Stock-based compensation expense:
Cost of revenue$223 $236 $203 $459 $356 
Research and development1,395 1,447 1,169 2,842 1,991 
Selling, general and administrative474 493 399 967 704 
Total stock-based compensation expense$2,092 $2,176 $1,771 $4,268 $3,051 




BROADCOM INC.
FINANCIAL RECONCILIATION: GAAP TO NON-GAAP — UNAUDITED
(IN MILLIONS)
Fiscal Quarter EndedTwo Fiscal Quarters Ended
May 3,
2026		February 1,
2026		May 4,
2025		May 3,
2026		May 4,
2025
Gross margin on GAAP basis$15,415 $13,157 $10,197 $28,572 $20,342 
Amortization of acquisition-related intangible assets1,461 1,462 1,483 2,923 2,967 
Stock-based compensation expense223 236 203 459 356 
Restructuring charges10 13 28 23 42 
Gross margin on non-GAAP basis$17,109 $14,868 $11,911 $31,977 $23,707 
Research and development on GAAP basis$2,995 $2,965 $2,693 $5,960 $4,946 
Stock-based compensation expense1,395 1,447 1,169 2,842 1,991 
Research and development on non-GAAP basis$1,600 $1,518 $1,524 $3,118 $2,955 
Selling, general and administrative expense on GAAP basis$1,055 $1,019 $1,083 $2,074 $2,032 
Stock-based compensation expense474 493 399 967 704 
Acquisition-related costs— 2 90 2 197 
Selling, general and administrative expense on non-GAAP basis$581 $524 $594 $1,105 $1,131 
Total operating expenses on GAAP basis$4,627 $4,594 $4,368 $9,221 $8,253 
Amortization of acquisition-related intangible assets506 507 506 1,013 1,017 
Stock-based compensation expense1,869 1,940 1,568 3,809 2,695 
Restructuring and other charges71 103 86 174 258 
Acquisition-related costs— 2 90 2 197 
Total operating expenses on non-GAAP basis$2,181 $2,042 $2,118 $4,223 $4,086 
Operating income on GAAP basis$10,788 $8,563 $5,829 $19,351 $12,089 
Amortization of acquisition-related intangible assets1,967 1,969 1,989 3,936 3,984 
Stock-based compensation expense2,092 2,176 1,771 4,268 3,051 
Restructuring and other charges81 116 114 197 300 
Acquisition-related costs— 2 90 2 197 
Operating income on non-GAAP basis$14,928 $12,826 $9,793 $27,754 $19,621 
Interest expense on GAAP basis$(776)$(801)$(769)$(1,577)$(1,642)
Loss on debt extinguishment31 55 — 86 65 
Interest expense on non-GAAP basis$(745)$(746)$(769)$(1,491)$(1,577)
Other income, net on GAAP basis$118 $433 $25 $551 $128 
Excise tax benefit— (315)— (315)— 
Other— — 6 — (21)
Other income, net on non-GAAP basis$118 $118 $31 $236 $107 


Fiscal Quarter EndedTwo Fiscal Quarters Ended
May 3,
2026		February 1,
2026		May 4,
2025		May 3,
2026		May 4,
2025
Provision for income taxes on GAAP basis$820 $846 $120 $1,666 $107 
Non-GAAP tax reconciling adjustments1,407 1,167 1,148 2,574 2,434 
Provision for income taxes on non-GAAP basis$2,227 $2,013 $1,268 $4,240 $2,541 
Net income on GAAP basis$9,310 $7,349 $4,965 $16,659 $10,468 
Amortization of acquisition-related intangible assets1,967 1,969 1,989 3,936 3,984 
Stock-based compensation expense2,092 2,176 1,771 4,268 3,051 
Restructuring and other charges81 116 114 197 300 
Acquisition-related costs— 2 90 2 197 
Loss on debt extinguishment31 55 — 86 65 
Excise tax benefit— (315)— (315)— 
Other— — 6 — (21)
Non-GAAP tax reconciling adjustments(1,407)(1,167)(1,148)(2,574)(2,434)
Net income on non-GAAP basis$12,074 $10,185 $7,787 $22,259 $15,610 
Net income on GAAP basis$9,310 $7,349 $4,965 $16,659 $10,468 
Non-GAAP Adjustments:
Amortization of acquisition-related intangible assets1,967 1,969 1,989 3,936 3,984 
Stock-based compensation expense2,092 2,176 1,771 4,268 3,051 
Restructuring and other charges81 116 114 197 300 
Acquisition-related costs— 2 90 2 197 
Loss on debt extinguishment31 55 — 86 65 
Excise tax benefit— (315)— (315)— 
Other— — 6 — (21)
Non-GAAP tax reconciling adjustments(1,407)(1,167)(1,148)(2,574)(2,434)
Other Adjustments:
Interest expense745 746 769 1,491 1,577 
Provision for income taxes on non-GAAP basis2,227 2,013 1,268 4,240 2,541 
Depreciation163 150 142 313 284 
Amortization of purchased intangibles and right-of-use assets35 34 35 69 72 
Adjusted EBITDA$15,244 $13,128 $10,001 $28,372 $20,084 
Weighted-average shares used in per share calculations - diluted on GAAP basis4,876 4,888 4,826 4,882 4,831 
Non-GAAP adjustment (1)
64 69 111 66 85 
Weighted-average shares used in per share calculations - diluted on non-GAAP basis4,940 4,957 4,937 4,948 4,916 
Net cash provided by operating activities$10,493 $8,260 $6,555 $18,753 $12,668 
Purchases of property, plant and equipment(231)(250)(144)(481)(244)
Free cash flow$10,262 $8,010 $6,411 $18,272 $12,424 
(1) Non-GAAP adjustment for the number of shares used in the diluted per share calculations excludes the impact of stock-based compensation expense expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method.


BROADCOM INC.
CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED
(IN MILLIONS)
May 3,
2026		November 2,
2025
ASSETS
Current assets:
Cash and cash equivalents$19,628 $16,178 
Trade accounts receivable, net10,830 7,145 
Inventory4,328 2,270 
Other current assets7,427 5,980 
Total current assets42,213 31,573 
Long-term assets:
Property, plant and equipment, net2,788 2,530 
Goodwill97,801 97,801 
Intangible assets, net28,333 32,273 
Other long-term assets8,023 6,915 
Total assets$179,158 $171,092 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$2,337 $1,560 
Employee compensation and benefits1,134 2,129 
Short-term debt2,252 3,152 
Other current liabilities13,139 11,673 
Total current liabilities18,862 18,514 
Long-term liabilities:
Long-term debt62,655 61,984 
Other long-term liabilities9,950 9,302 
Total liabilities91,467 89,800 
Stockholders’ equity:
Preferred stock— — 
Common Stock5 5 
Additional paid-in capital75,312 71,308 
Retained earnings12,166 9,761 
Accumulated other comprehensive income208 218 
Total stockholders' equity87,691 81,292 
Total liabilities and equity$179,158 $171,092 



BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED
(IN MILLIONS)
Fiscal Quarter EndedTwo Fiscal Quarters Ended
May 3,
2026		February 1,
2026		May 4,
2025		May 3,
2026		May 4,
2025
Cash flows from operating activities:
Net income$9,310 $7,349 $4,965 $16,659 $10,468 
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible and right-of-use assets2,002 2,003 2,024 4,005 4,056 
Depreciation163 150 142 313 284 
Stock-based compensation2,092 2,176 1,771 4,268 3,051 
Deferred taxes and other non-cash taxes(603)(455)(571)(1,058)(1,267)
Loss on debt extinguishment31 55 — 86 65 
Non-cash interest expense67 72 94 139 191 
Other3 15 40 18 81 
Changes in assets and liabilities, net of acquisitions and disposals:
  Trade accounts receivable, net(2,370)(1,315)(590)(3,685)(1,129)
  Inventory(1,366)(692)(109)(2,058)(257)
  Accounts payable149 534 (613)683 (372)
  Employee compensation and benefits270 (1,261)287 (991)(621)
  Other current assets and current liabilities474 (692)(55)(218)(29)
  Other long-term assets and long-term liabilities271 321 (830)592 (1,853)
Net cash provided by operating activities10,493 8,260 6,555 18,753 12,668 
Cash flows from investing activities:
Purchases of property, plant and equipment(231)(250)(144)(481)(244)
Purchases of investments(23)(114)(57)(137)(162)
Sales of investments39 244 78 283 96 
Other7 5 (10)12 3 
Net cash used in investing activities(208)(115)(133)(323)(307)
Cash flows from financing activities: 
Proceeds from long-term borrowings— 4,474 749 4,474 3,735 
Payments on debt obligations(1,250)(3,650)— (4,900)(8,090)
Proceeds from (repayments of) commercial paper, net— — (119)— 3,861 
Payments of dividends(3,092)(3,086)(2,785)(6,178)(5,559)
Repurchases of common stock - repurchase program(600)(7,850)(2,450)(8,450)(2,450)
Shares repurchased for tax withholdings on vesting of equity awards— — (1,766)— (3,802)
Issuance of common stock113 — 118 113 118 
Other(2)(37)(4)(39)(50)
Net cash used in financing activities(4,831)(10,149)(6,257)(14,980)(12,237)
Net change in cash and cash equivalents5,454 (2,004)165 3,450 124 
Cash and cash equivalents at beginning of period14,174 16,178 9,307 16,178 9,348 
Cash and cash equivalents at end of period$19,628 $14,174 $9,472 $19,628 $9,472 
Supplemental disclosure of cash flow information:
Cash paid for interest$695 $619 $700 $1,314 $1,371 
Cash paid for income taxes$1,099 $782 $608 $1,881 $1,012