Broadcom's Q2 Revenue Surges 48%, but AI Outlook Disappoints

WHO:

Yahoo Finance - Hock Tan stated that Broadcom's AI semiconductor revenue is expected to keep growing in fiscal 2028, citing engagements with six core customers.

Yahoo Finance - Ji Yoo, Broadcom’s head of investor relations, noted that CFO Kirsten Spears will retire on June 12 after 12 years of leadership.

Yahoo Finance - Hock Tan stated that Broadcom remains on a trajectory that is “very much on track, if not stronger” for fiscal 2027 AI semiconductor revenue.

Yahoo Finance - Hock Tan stated that Broadcom expects to deliver more than 10 gigawatts of AI computing capacity by 2027, representing a modest increase from previous expectations.

Yahoo Finance - Hock Tan stated that Broadcom expects to deliver more than 10 gigawatts of AI computing capacity by 2027.

Yahoo Finance - Hock Tan is the President and CEO of Broadcom.

Yahoo Finance - Broadcom is a global technology company headquartered in Irvine, California.

WHAT:

Yahoo Finance - Broadcom's Infrastructure Software revenue is expected to be approximately $8.9 billion for the third quarter, up 31% year over year.

Yahoo Finance - Broadcom's consolidated gross margin is expected to decline to approximately 74% in the third quarter.

Yahoo Finance - Broadcom's forecast for AI chip sales for the third quarter is approximately $16 billion, slightly below the $16.36 billion expected by analysts.

Yahoo Finance - Broadcom's AI semiconductor revenue is expected to double in the second half of fiscal 2026 compared to the first half.

Yahoo Finance - Broadcom's Infrastructure Software revenue is expected to be approximately $8.9 billion for the third quarter, up 31% year over year.

Yahoo Finance - Broadcom's consolidated gross margin is expected to decline to approximately 74% in the third quarter.

Yahoo Finance - Broadcom's AI semiconductor revenue is expected to keep growing in fiscal 2028, citing engagements with six core customers.

Yahoo Finance - Broadcom expects to deploy 3 gigawatts through the end of 2028 under a partnership involving MTIA XPUs with Meta.

Yahoo Finance - Broadcom's shares fell more than 13% in extended trading following the earnings announcement.

Yahoo Finance - Broadcom's forecast for AI chip sales for the third quarter is approximately $16 billion, slightly below the $16.36 billion expected by analysts.

Yahoo Finance - Broadcom's Infrastructure Software revenue was $7.2 billion in the second quarter, up 9% year over year.

Yahoo Finance - Broadcom's Infrastructure Software revenue is expected to be approximately $8.9 billion for the third quarter, up 31% year over year.

Yahoo Finance - Broadcom's Semiconductor Solutions segment revenue was a record $15 billion, up 79% year over year.

Yahoo Finance - Broadcom's operating income was a record $14.9 billion, up 52% from a year earlier.

Yahoo Finance - Broadcom's cash dividends during the quarter totaled $3.1 billion, based on a quarterly common stock cash dividend of $0.65 per share.

Yahoo Finance - Broadcom ended the quarter with $19.6 billion in cash, up from $14.2 billion in the prior quarter.

Yahoo Finance - Broadcom's inventory rose to $4.33 billion, with days of inventory increasing to 86 from 68 in the prior quarter.

Yahoo Finance - Broadcom's bookings for AI semiconductors exceeded $30 billion during the quarter, compared with the $10.8 billion shipped.

Yahoo Finance - Broadcom expects fiscal 2027 AI semiconductor revenue to exceed $100 billion.

Yahoo Finance - For fiscal third-quarter 2026, Broadcom guided for consolidated revenue of $29.4 billion, up 84% year over year, and semiconductor revenue of approximately $20.5 billion, up 124% year over year.

Yahoo Finance - Broadcom expects Infrastructure Software revenue of approximately $8.9 billion for the third quarter, up 31% year over year.

Yahoo Finance - Broadcom's consolidated gross margin is expected to decline to approximately 74% in the third quarter.

Yahoo Finance - Broadcom reported fiscal second-quarter 2026 revenue of $22.2 billion, up 48% year over year.

Yahoo Finance - AI semiconductor revenue reached a record $10.8 billion in the quarter, up 143% year over year.

Yahoo Finance - Broadcom expects AI semiconductor revenue to double in the second half of fiscal 2026 compared to the first half.

Yahoo Finance - For the third quarter, Broadcom expects AI semiconductor revenue of $16 billion, up more than 200% year over year.

Yahoo Finance - Broadcom anticipates full fiscal year AI semiconductor revenue of $56 billion, up approximately 180% from fiscal 2025.

Yahoo Finance - Total operating margin was a record 67%, and adjusted EBITDA was 69% of revenue.

Yahoo Finance - Free cash flow was a record $10.3 billion, representing 46% of revenue.

Techmeme - Broadcom's Q2 revenue was reported at $22.19 billion, slightly below the estimated $22.27 billion.

WHERE:

Yahoo Finance - Broadcom is headquartered in Irvine, California.

WHEN:

Yahoo Finance - Broadcom expects to deliver an initial 1-gigawatt order for Meta in the second half of 2027.

Yahoo Finance - Broadcom expects to deploy 1.3 gigawatts for OpenAI in 2027 as part of a larger 10-gigawatt agreement by 2029.

Yahoo Finance - Broadcom expects to deliver silicon for OpenAI and remains on track for production in late 2026.

Yahoo Finance - Broadcom expects to deliver an initial 1-gigawatt order for Meta in the second half of 2027.

Yahoo Finance - Broadcom expects to deploy 1.3 gigawatts for OpenAI in 2027 as part of a larger 10-gigawatt agreement by 2029.

Yahoo Finance - Broadcom expects to deliver an initial 1-gigawatt order for Meta in the second half of 2027.

Yahoo Finance - Ji Yoo, Broadcom’s head of investor relations, noted that CFO Kirsten Spears will retire on June 12 after 12 years of leadership.

WHY:

Yahoo Finance - Increased competition in the custom AI chip market is intensifying, with companies like Marvell Technology targeting hyperscale cloud providers.

Yahoo Finance - Investor sentiment was affected by the company’s outlook for AI-related revenue, which did not include upward revisions to long-term growth projections.

Yahoo Finance - Demand for Broadcom’s AI semiconductors remains “simply insatiable,” according to Hock Tan.

Yahoo Finance - Increased competition was cited as a reason for missing Wall Street expectations for second-quarter revenue.

HOW:

Yahoo Finance - Broadcom has agreements involving TPU-based compute access for Anthropic, including more than one gigawatt in 2026 and another five gigawatts beginning in 2027.

Yahoo Finance - Broadcom entered into a long-term agreement with Google in April to develop and supply multiple generations of TPUs and AI networking.

Yahoo Finance - Broadcom has agreements involving TPU-based compute access for Anthropic, including more than one gigawatt in 2026 and another five gigawatts beginning in 2027.

(UPDATED June 5, 2026 04:19 UTC)

Broadcom's AI semiconductor revenue is projected to continue its growth in fiscal 2028, thanks to engagements with six core customers, according to Hock Tan. The company anticipates its Infrastructure Software revenue will reach about $8.9 billion for the third quarter, reflecting a 31% increase year over year, while also forecasting AI chip sales around $16 billion, slightly below analysts' expectations. Additionally, Broadcom's CFO Kirsten Spears will retire on June 12 after 12 years of leadership, and the company plans to deliver an initial 1-gigawatt order for Meta in the second half of 2027.

(UPDATED June 4, 2026 23:20 UTC)

Broadcom's Hock Tan announced that the company is on a strong trajectory for fiscal 2027 AI semiconductor revenue, with expectations that this revenue will double in the second half of fiscal 2026 compared to the first half. Additionally, Broadcom anticipates its Infrastructure Software revenue will reach approximately $8.9 billion for the third quarter, reflecting a 31% increase year over year, although the consolidated gross margin is expected to decline to around 74%. Looking ahead, Broadcom plans to deliver silicon for OpenAI, with production on track for late 2026, amid increasing competition in the custom AI chip market from companies like Marvell Technology.

(UPDATED June 4, 2026 19:40 UTC)

Broadcom is set to deliver more than 10 gigawatts of AI computing capacity by 2027, which is a modest increase from earlier projections, according to Hock Tan. The company anticipates an initial 1-gigawatt order for Meta in the second half of 2027 and expects to deploy 3 gigawatts through a partnership involving MTIA XPUs with Meta by the end of 2028. Additionally, Broadcom's AI semiconductor revenue is projected to continue growing in fiscal 2028, driven by engagements with six core customers amid increasing competition in the custom AI chip market.

(UPDATED June 4, 2026 17:52 UTC)

Broadcom's CEO, Hock Tan, announced that the company expects to deliver over 10 gigawatts of AI computing capacity by 2027, but this news was overshadowed by a significant drop in their stock price. Following the earnings announcement, Broadcom's shares fell more than 13% in extended trading, as their forecast for AI chip sales in the third quarter came in at about $16 billion, slightly below analyst expectations of $16.36 billion. Investor sentiment took a hit due to the company's outlook for AI-related revenue, which did not include any upward revisions to long-term growth projections.

(UPDATED June 4, 2026 13:57 UTC)

Broadcom reported impressive financial results, with its Infrastructure Software revenue reaching $7.2 billion in the second quarter, marking a 9% increase year over year, and it is projected to rise to approximately $8.9 billion in the third quarter, reflecting a 31% growth. The company's Semiconductor Solutions segment achieved a record revenue of $15 billion, up 79% from the previous year, while operating income also set a new record at $14.9 billion, a 52% increase. Additionally, Broadcom distributed $3.1 billion in cash dividends during the quarter and ended with $19.6 billion in cash, a significant rise from $14.2 billion in the prior quarter.

(UPDATED June 4, 2026 08:20 UTC)

Broadcom has reported impressive bookings for AI semiconductors, exceeding $30 billion during the quarter, while shipments totaled $10.8 billion. Looking ahead, the company anticipates that its AI semiconductor revenue will surpass $100 billion in fiscal 2027, and for the third quarter of fiscal 2026, Broadcom is guiding for consolidated revenue of $29.4 billion, which is an 84% increase year over year. Additionally, the company expects semiconductor revenue to reach about $20.5 billion, up 124% from the previous year, although its consolidated gross margin is projected to decline to approximately 74% in the same quarter.

(UPDATED June 4, 2026 06:39 UTC)

Broadcom has reported impressive fiscal second-quarter 2026 revenue of $22.2 billion, marking a 48% increase year over year, although this figure fell slightly short of Wall Street expectations. The company's AI semiconductor revenue reached a record $10.8 billion, soaring 143% from the previous year, and Broadcom anticipates this segment will double in the second half of the fiscal year, with expectations of $16 billion in AI semiconductor revenue for the third quarter. Hock Tan, the President and CEO of Broadcom, highlighted the insatiable demand for AI semiconductors, while also noting that CFO Kirsten Spears will retire on June 12 after twelve years of leadership.