Broadcom Q2 Results Disappoint Despite Record Revenue Driven by AI

Broadcom reported record Q2 FY2026 revenue of $22.2 billion, driven by strong AI semiconductor demand, but shares fell 15.68% due to the decision to maintain its AI revenue target. The company's AI revenue reached $10.8 billion, up 143% YoY.

Broadcom Inc. announced its second quarter fiscal year 2026 financial results, posting record revenue driven by strong demand for its AI semiconductor products . The company reported Q2 revenue of $22.2 billion, a 48% increase year-over-year , led by AI semiconductor revenue of $10.8 billion, up 143% from the same quarter last year and roughly half of total sales .

Despite beating revenue and EPS expectations, AVGO shares fell roughly 5% to 6% after the report, as infrastructure software revenue of $7.18 billion came in below the about $7.32 billion analysts expected and overshadowed the record AI print . Investors had built elevated expectations into the quarter, leaving little room for any soft line item.

Looking ahead, Broadcom guided Q3 AI semiconductor revenue to about $16 billion, representing over 200% year-over-year growth, and reiterated its full-year fiscal 2026 AI revenue target in excess of $100 billion . A record 67.3% operating margin and $10.3 billion in free cash flow underscored the company's profitability, and the board approved a quarterly dividend of $0.65 per share.