Broadcom Q2 FY2026. The $100 Billion AI Trajectory Remains On Track.
On June 3, 2026, after the close, Broadcom reported its fiscal second quarter:
Revenue of $22.2 billion, up 48 percent from the prior year period
GAAP net income of $9.3 billion; Non-GAAP net income of $12 billion
Adjusted EBITDA of $15.2 billion or 69% of revenue
GAAP diluted EPS of $1.91; Non-GAAP diluted EPS of $2.44
Cash from operations of $10.5 billion, less CapEx of $231 million, resulted in $10.3 billion of free cash flow, or 46% of revenue
For the record, the company had previously guided as follows:
revenue of approximately $22.0 billion; and
Adjusted EBITDA of approximately 68% of projected revenue.
I think you could already have guessed right there what was to come in after hours trading.
According to Hock Tan, President and CEO of Broadcom
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. The momentum continues and in Q3 we expect semiconductor revenue from AI to grow over 200 percent year-over-year to $16.0 billion."
In terms of current quarter guidance, we got the following:
Revenue guidance of approximately $29.4 billion;
non-GAAP operating income guidance of approximately 67% of projected revenue;
Adjusted EBITDA guidance of approximately 68% of projected revenue.
The market response was predictably not good with the stock giving up almost 13% in overnight trading. It is of course still up 60% over the past twelve months, so there’s that.
So what’s going on with Broadcom? Let’s dig in…
