Broadcom's AI inflection is no longer a thesis — it's a revenue line.
Total revenue reached a record $19.3B (+29% YoY), driven by an extraordinary 106% surge in AI semiconductor revenue to $8.4B. Management issued perhaps the most confident long-range AI guidance in semiconductor history, citing line-of-sight to >$100B in AI chip revenue in 2027.
Revenue & Growth Trajectory
"Today, in fact, we have line of sight to achieve AI revenue from chips — just chips — in excess of $100 billion in 2027. We have also secured the supply chain required to achieve this."
Segment Performance
Broadcom's Tomahawk 6 (100 Tbps) and Jericho3-AI switch chips are capturing hyperscaler cluster networking, as the fabric build-out now matches the intensity of compute provisioning.
"Our Infrastructure Software is not disrupted by AI. It allows enterprises to scale complex generative AI workloads effectively with agility that hardware alone cannot provide. We are confident that the growth in generative and agentic AI will create the need for more VMware, not less."
Profitability & Free Cash Flow
Earnings Per Share
| Revenue | +$0.13B beat |
| Adj. EPS | +$0.02 beat |
| Semi Rev. | +$0.27B beat |
| Infra SW Rev. | -$0.22B miss |
| EBITDA Margin | +100bps beat |
| Q2 Rev. Guide | +$1.5B beat |
| Q2 AI Rev. Guide | +$1.5B+ beat |
"Our custom accelerator business grew 140% year-on-year in Q1. This momentum continues in Q2. Our ability to assure supply in these times of constrained capacity in leading-edge wafers, in High-Bandwidth Memory, and substrates ensures the durability of our partnerships — and we have fully secured capacity of these components for 2026 through 2028."
Forward Revenue Estimates
| Q2 FY26E (Guidance) | $22,000M |
| Q3 FY26E | $29,124M |
| Q4 FY26E | $33,893M |
| Q1 FY27E | $35,056M |
| Q2 FY27E | $37,406M |
| Q3 FY27E | $40,476M |
| FY26 Full-Year Est. | ~$88–90B |
| FY27 Full-Year Est. | ~$165B+ |
"That inference is driving a substantial amount of compute capacity, which is great for us — these players are on the path to creating their own custom accelerators, and beyond that, their own design architecture of networking clusters of those custom accelerators. I think we're going to see demand keep picking up."