Broadcom Q2 Results Disappoint Despite Record Revenue Driven by AI

SentiSense · Published Jun 3, 2026, 3:22 PM ET · Updated Jun 4, 2026, 10:43 AM ET

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.