Broadcom

Broadcom reported results (Sep 02, 2026). EPS came in at $3.32 against a $3.22 consensus, beat by 3.1%. Revenue was $29.6B versus $29.2B expected, beat by 1.2%.

Broadcom's Q2 FY2026 earnings report underscores the company's strong performance, driven by a significant surge in AI semiconductor revenue. The company's results beat estimates, and its guidance for the next quarter indicates continued strong growth.

Broadcom delivered only a modest street beat in Q1 FY2026, but the print matters because management converted AI semiconductor upside into a much steeper near-term revenue trajectory. The investment debate is no longer whether AI is contributing, but whether the company can sustain a custom silicon ramp large enough to offset a flattish non-AI base and a software segment growing at a much slower pace.

Broadcom beat on revenue and EPS, but the variant perception is that the real surprise was not the +3.1% top-line beat or +4.3% EPS beat. The market was pricing an AI growth story; this print makes it a backlog-conversion story, with $73 billion in AI backlog to be delivered over the next eighteen months and Q1 AI semiconductor revenue guided to $8.2 billion.

Broadcom cleared a low bar on the reported quarter, but the investable surprise is that AI semiconductor revenue is being guided to $6.2 billion while non-AI semis also recover to approximately $4.6 billion. The market may be underpricing the durability of Broadcom’s custom AI ramp because the mix drag on gross margin is visible, while the operating leverage and customer-specific supply chain pull-through are larger than the headline beat.