Broadcom Sets New Records with Record-Breaking Q2 2026 Performance
Broadcom Inc. has announced its record-breaking performance in the second quarter of fiscal year 2026, exceeding expectations and setting new records across various business segments.
According to the company's recent conference call transcript, Broadcom's total revenue reached a record $22.2 billion, up 48% year-on-year, surpassing guidance on strength in AI semiconductors. This achievement is attributed to the growing demand for artificial intelligence (AI) and semiconductor products.
The company's Q2 operating margin was a record 67%, with adjusted EBITDA at a record 69% of revenue, both above expectations. Despite significant growth driven by AI, Broadcom's operating and EBITDA margins remained strong and stable.
In the semiconductor segment, Broadcom recorded a record $15 billion in revenue, an increase of 79% year-on-year. The AI semiconductor revenue at $10.8 billion marked a new high, up 143% year-over-year and exceeding guidance. Network demand drove this growth, with over 40% of AI revenue coming from networking.
Notably, the company reported bookings for AI semiconductors at over $30 billion against shipped amounts of $10.8 billion in Q2. Looking ahead to the second half of 2026, Broadcom expects AI semiconductor revenue to double compared to the first half of the year.
In Q3 2026, the company anticipates AI semiconductor revenue to reach $16 billion, up over 200% from Q3 2025. For fiscal year 2026, Broadcom forecasts AI semiconductor revenue at $56 billion, a significant increase of approximately 180% from fiscal 2025.
Guidance for fiscal year 2027 and beyond continues with an ambitious target: AI semiconductor revenue in excess of $100 billion. This projection is underpinned by partnerships with key customers such as Google, Anthropic, OpenAI, Meta, and other core partners. These agreements secure Broadcom's leadership position in AI semiconductors, driven by superior technology and execution compared to competitors.
The company's CEO Hock Tan emphasized the strategic importance of these partnerships during the conference call, stating that delivering vastly superior technology and execution ensures sustained growth for Broadcom in the foreseeable future. With multiple generations of TPUs and AI networking planned with Google, 1 gigawatts access to TPU-based compute provided for Anthropic, silicon delivered to OpenAI, a partnership to deliver MTIA XPUs with Meta, and more, Broadcom is poised for significant growth across its key business segments.
The successful execution of these strategic agreements highlights Broadcom's commitment to leadership in AI semiconductors. With over $6 billion in purchase orders received from customers, the company appears well-positioned to capitalize on the rapidly growing demand for these critical components."
