Broadcom Inc. Announces Third Quarter Fiscal Year 2026 Financial Results and
Broadcom Inc. Announces Third Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend • Revenue of $29.6 billion for the third quarter, up 86 percent from the prior year period
• GAAP operating income of $16.0 billion for the third quarter; Non-GAAP operating income of $20.1 billion for the third quarter
• GAAP diluted EPS of $2.68 for the third quarter; Non-GAAP diluted EPS of $3.32 for the third quarter
• Cash from operations of $14.2 billion for the third quarter, less capital expenditures of $0.5 billion, resulted in $13.7 billion of free cash flow, or 46 percent of revenue
• Fourth quarter fiscal year 2026 revenue guidance of approximately $34.8 billion, an increase of 93 percent from the prior year period
• Fourth quarter fiscal year 2026 Non-GAAP operating income guidance of approximately 66 percent of projected revenue (1)
Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its third quarter of fiscal year 2026, ended August 2, 2026, provided guidance for its fourth quarter of fiscal year 2026 and announced its quarterly dividend.
“Demand for our custom AI accelerators and networking continues to be very strong. Q3 AI semiconductor revenue of $16.7 billion grew 221% year-over-year, and 54% quarter-over-quarter,” said Hock Tan, President and CEO of Broadcom Inc. “In Q4 the momentum continues, and we expect AI semiconductor revenue to accelerate to $21.7 billion, up 236% year-over-year.”
“Broadcom achieved record revenue, operating profit and free cash flow in Q3. We delivered non-GAAP operating income growth of 92% year-over-year, as consolidated revenue grew 86% year-over-year to $29.6 billion,” said Amie Thuener, CFO of Broadcom Inc. “Q4 consolidated revenue growth is forecasted to increase 93% year-over-year to $34.8 billion, and we expect to maintain our non- GAAP operating margin at 66%, flat from a year ago.”
(1) The Company is not readily able to provide a reconciliation of projected non-GAAP financial measures presented to the relevant projected GAAP measures without unreasonable effort. 1 Third Quarter Fiscal Year 2026 Financial Highlights
The Company’s cash and cash equivalents at the end of the fiscal quarter were $24.0 billion, compared to $19.6 billion at the end of the prior fiscal quarter.
During the third fiscal quarter, the Company generated $14.2 billion in cash from operations and spent $0.5 billion on capital expenditures, resulting in $13.7 billion of free cash flow.
On June 30, 2026, the Company paid a cash dividend of $0.65 per share, totaling $3.1 billion.
The differences between the Company’s GAAP and non-GAAP results are described generally under “Non-GAAP Financial Measures” below and presented in detail in the financial reconciliation tables attached to this release.
Based on current business trends and conditions, the outlook for the fourth quarter of fiscal year 2026, ending November 1, 2026, is expected to be as follows:
• Fourth quarter non-GAAP operating income guidance of approximately 66 percent of projected revenue.
The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. The Company is not readily able to provide a reconciliation of projected non-GAAP financial measures to the relevant projected GAAP measures without unreasonable effort. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law. 2
The Board of Directors of Broadcom has approved a quarterly cash dividend of $0.65 per share. The dividend is payable on September 30, 2026 to stockholders of record at the close of business (5:00 p.m. Eastern Time) on September 21, 2026.
Broadcom Inc. will host a conference call to review its financial results for the third quarter of fiscal year 2026 and to discuss the business outlook today at 2:00 p.m. Pacific Time.
To Listen via Internet: The conference call can be accessed live online in the Investors section of the Broadcom website at https://investors.broadcom.com/.
Replay: An audio replay of the conference call can be accessed for one year through the Investors section of Broadcom’s website at https://investors.broadcom.com/.
The non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. When possible, a reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release. The Company is not readily able to provide a reconciliation of projected non-GAAP measures to the comparable GAAP measures without unreasonable effort. Broadcom believes non-GAAP financial information provides additional insight into the Company’s on-going performance. Therefore, Broadcom provides this information to investors for a more consistent basis of comparison and to help them evaluate the results of the Company’s on-going operations and enable more meaningful period to period comparisons.
In addition to GAAP reporting, Broadcom provides investors with net income, operating income, gross margin, operating expenses, cash flow and other data on a non-GAAP basis. This non-GAAP information excludes amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring and other charges, acquisition-related costs, including integration costs, non-GAAP tax reconciling adjustments, and other adjustments. Management does not believe that these items are reflective of the Company’s underlying performance. Internally, these non-GAAP measures are significant measures used by management for purposes of evaluating the core operating performance of the Company, establishing internal budgets, calculating return on investment for development programs and growth initiatives, comparing performance with internal forecasts and targeted business models, strategic planning, evaluating and valuing potential acquisition candidates and how their operations compare to the Company’s operations, and benchmarking performance externally against the Company’s competitors. The exclusion of these and other similar items from Broadcom’s non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent or unusual.
Free cash flow measures have limitations as they omit certain components of the overall cash flow statement and do not represent the residual cash flow available for discretionary expenditures. Investors should not consider presentation of free cash flow measures as implying that stockholders have any right 3 to such cash. Broadcom’s free cash flow may not be calculated in a manner comparable to similarly named measures used by other companies.
Broadcom Inc. (NASDAQ: AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations’ complex, mission-critical needs. Broadcom combines long-term R&D investment with superb execution to deliver the best technology, at scale. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, visit www.broadcom.com.
This announcement contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning Broadcom. These statements include, but are not limited to, statements that address our expected future business and financial performance, our plans and expectations with regard to our share repurchases, and other statements identified by words such as “will,” “expect,” “believe,” “anticipate,” “estimate,” “should,” “intend,” “plan,” “potential,” “predict,” “project,” “aim,” and similar words, phrases or expressions. These forward- looking statements are based on current expectations and beliefs of Broadcom’s management, current information available to Broadcom’s management, and current market trends and market conditions and involve risks and uncertainties that may cause actual results to differ materially from those contained in these forward- looking statements. Accordingly, undue reliance should not be placed on such statements.
Particular uncertainties that could materially affect future results include risks associated with: global economic conditions and uncertainty; government regulations, trade restrictions and trade tensions; global political and economic conditions relating to our international operations; cyclicality in the semiconductor industry undergoing profound change due to AI; any loss of our significant customers and fluctuations in the timing and volume of significant customer demand; the slow or unsuccessful return on our research and development investments, expansion of our business strategy or adoption of new business models; our dependence on contract manufacturing and outsourced supply chain; our dependency on a limited number of suppliers; our ability to continue winning business in the semiconductor solutions industry; our ability to accurately estimate customers’ demand and adjust our manufacturing and supply chain accordingly; dependence on senior management and our ability to attract and retain qualified personnel; our ability to maintain or improve gross margin; our ability to protect against cybersecurity threats and a breach of security systems; prolonged disruptions of our, our customers’ or our suppliers’ facilities or other significant operations; our ability to maintain appropriate manufacturing capacity and quality; dependence on and risks associated with distributors and other channel partners of our products; ability of our software portfolio to manage and secure IT infrastructures and environments; demand for our data center virtualization products and customer acceptance of our software, services and business strategy; competitiveness of our software solutions and compatibility of our software with operating environments, platforms or third- party products; our ability to enter into satisfactory software license agreements; use of open source software in our software and services; sales to government customers; our ability to manage our software solutions and services lifecycles; our competitive performance; quarterly and annual fluctuations in operating results; any acquisitions or dispositions we may make, such as delays, challenges and expenses associated with receiving governmental and regulatory approvals and satisfying other closing conditions, and with 4 integrating acquired businesses with our existing businesses and our ability to achieve the benefits, growth prospects and synergies expected by such acquisitions; involvement in legal proceedings; our ability to protect our intellectual property and the unpredictability of any associated litigation expenses; any expenses or reputational damage associated with resolving customer product warranty and indemnification claims, or other undetected defects or bugs; our compliance with privacy and data security laws; corporate responsibility matters; our provision for income taxes and overall cash tax costs; our ability to maintain tax concessions in certain jurisdictions; potential tax liabilities as a result of acquiring VMware; our significant indebtedness and the need to generate sufficient cash flows to service and repay such debt; the amount and frequency of our share repurchase program; and other events and trends on a national, regional, industry-specific and global scale, including those of a political, economic, business, competitive and regulatory nature.
Our filings with the SEC, which are available without charge at the SEC’s website at https://www.sec.gov, discuss some of the important risk factors that may affect our business, results of operations and financial condition. Actual results may vary from the estimates provided. We undertake no intent or obligation to publicly update or revise any of the estimates and other forward- looking statements made in this announcement, whether as a result of new information, future events or otherwise, except as required by law.
(1) Non-GAAP adjustment for the number of shares used in the diluted per share calculations excludes the impact of stock-based compensation expense expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method.
August 2, November 2, 2026 2025 ────────────────────────────────────────────────────────────────────────── ASSETS Current assets: Cash and cash equivalents $ 23,975 $ 16,178 Trade accounts receivable, net 13,707 7,145 Inventory 4,523 2,270 Other current assets 9,968 5,980 Total current assets 52,173 31,573 Long-term assets: Property, plant and equipment, net 3,144 2,530 Goodwill 97,801 97,801 Intangible assets, net 26,325 32,273 Other long-term assets 8,705 6,915 Total assets $ 188,148 $ 171,092 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 4,000 $ 1,560 Employee compensation and benefits 1,506 2,129 Short-term debt 2,252 3,152 Other current liabilities 13,080 11,673 Total current liabilities 20,838 18,514 Long-term liabilities: Long-term debt 57,167 61,984 Other long-term liabilities 10,453 9,302 Total liabilities 88,458 89,800 Stockholders’ equity: Preferred stock — — Common Stock 5 5 Additional paid-in capital 77,330 71,308 Retained earnings 22,151 9,761 Accumulated other comprehensive income 204 218 Total stockholders' equity 99,690 81,292 Total liabilities and equity $ 188,148 $ 171,092
Full text with the tables
Exhibit 99.1
Broadcom Inc. Announces Third Quarter Fiscal Year 2026 Financial Results and
Quarterly Dividend
• Revenue of $29.6 billion for the third quarter, up 86 percent from the prior
year period
• GAAP operating income of $16.0 billion for the third quarter; Non-GAAP
operating income of $20.1 billion for the third quarter
• GAAP diluted EPS of $2.68 for the third quarter; Non-GAAP diluted EPS of $3.32
for the third quarter
• Cash from operations of $14.2 billion for the third quarter, less capital
expenditures of $0.5 billion, resulted in $13.7 billion of free cash flow, or 46
percent of revenue
• Quarterly common stock dividend of $0.65 per share
• Fourth quarter fiscal year 2026 revenue guidance of approximately $34.8
billion, an increase of 93 percent from the prior year period
• Fourth quarter fiscal year 2026 Non-GAAP operating income guidance of
approximately 66 percent of projected revenue (1)
PALO ALTO, Calif. –
September 2, 2026
–
Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops
and supplies semiconductor and infrastructure software solutions, today reported
financial results for its third quarter of fiscal year 2026, ended August 2,
2026, provided guidance for its fourth quarter of fiscal year 2026 and announced
its quarterly dividend.
“Demand for our custom AI accelerators and networking continues to be very
strong. Q3 AI semiconductor revenue of $16.7 billion grew 221% year-over-year,
and 54% quarter-over-quarter,” said Hock Tan, President and CEO of Broadcom Inc.
“In Q4 the momentum continues, and we expect AI semiconductor revenue to
accelerate to $21.7 billion, up 236% year-over-year.”
“Broadcom achieved record revenue, operating profit and free cash flow in Q3. We
delivered non-GAAP operating income growth of 92% year-over-year, as
consolidated revenue grew 86% year-over-year to $29.6 billion,” said Amie
Thuener, CFO of Broadcom Inc. “Q4 consolidated revenue growth is forecasted to
increase 93% year-over-year to $34.8 billion, and we expect to maintain our non-
GAAP operating margin at 66%, flat from a year ago.”
________________________________
(1) The Company is not readily able to provide a reconciliation of projected
non-GAAP financial measures presented to the relevant projected GAAP measures
without unreasonable effort.
1
Third Quarter Fiscal Year 2026 Financial Highlights
(…
in
m…
e…
p…
s… Q3 Q3 Q3 Q3
d… GA… 26 25 C… N… 26 25 Ch…
──────────────────────────────────────────────────────────────────────────────
… $ 2… $ 15… +86 % $ 29… $ 1… +… %
…
… $ 1… $ 5,… +1… % $ 20… $ 1… +… %
…
… $ 1… $ 4,… +2… % $ 16… $ 8… +… %
…
…
…
… $ 2… $ 0.… +2… % $ 3.… $ 1… +… %
…
-
…
(Dollars in
millions) Q3 26 Q3 25 Change
──────────────────────────────────────────────────────────────────────────────
Cash flow from $ 14,197 $ 7,166 +98 %
operations
Free cash flow $ 13,665 $ 7,024 +95 %
Net
re…
by
se…
(D…
in Q3 Q3
mi… 26 25 Cha…
──────────────────────────────────────────────────────────────────────────────
Se… $ 20,… 70 % $ 9,166 57 % +127 %
so…
In… 8,7… 30 6,786 43 +29 %
so…
To…
net $ 29,… 100 % $ 15,9… 100 %
re…
The Company’s cash and cash equivalents at the end of the fiscal quarter were
$24.0 billion, compared to $19.6 billion at the end of the prior fiscal quarter.
During the third fiscal quarter, the Company generated $14.2 billion in cash
from operations and spent $0.5 billion on capital expenditures, resulting in
$13.7 billion of free cash flow.
On June 30, 2026, the Company paid a cash dividend of $0.65 per share, totaling
$3.1 billion.
The differences between the Company’s GAAP and non-GAAP results are described
generally under “Non-GAAP Financial Measures” below and presented in detail in
the financial reconciliation tables attached to this release.
Fourth Quarter Fiscal Year 2026 Business Outlook
Based on current business trends and conditions, the outlook for the fourth
quarter of fiscal year 2026, ending November 1, 2026, is expected to be as
follows:
• Fourth quarter revenue guidance of approximately $34.8 billion;
• Fourth quarter non-GAAP operating income guidance of approximately 66 percent
of projected revenue.
The guidance provided above is only an estimate of what the Company believes is
realizable as of the date of this release. The Company is not readily able to
provide a reconciliation of projected non-GAAP financial measures to the
relevant projected GAAP measures without unreasonable effort. Actual results
will vary from the guidance and the variations may be material. The Company
undertakes no intent or obligation to publicly update or revise any of these
projections, whether as a result of new information, future events or otherwise,
except as required by law.
2
Quarterly Dividends
The Board of Directors of Broadcom has approved a quarterly cash dividend of
$0.65 per share. The dividend is payable on September 30, 2026 to stockholders
of record at the close of business (5:00 p.m. Eastern Time) on September 21,
2026.
Financial Results Conference Call
Broadcom Inc. will host a conference call to review its financial results for
the third quarter of fiscal year 2026 and to discuss the business outlook today
at 2:00 p.m. Pacific Time.
To Listen via Internet: The conference call can be accessed live online in the
Investors section of the Broadcom website at https://investors.broadcom.com/.
Replay: An audio replay of the conference call can be accessed for one year
through the Investors section of Broadcom’s website at
https://investors.broadcom.com/.
Non-GAAP Financial Measures
The non-GAAP measures should not be considered as a substitute for, or superior
to, measures of financial performance prepared in accordance with GAAP. When
possible, a reconciliation between GAAP and non-GAAP financial data is included
in the supplemental financial data attached to this press release. The Company
is not readily able to provide a reconciliation of projected non-GAAP measures
to the comparable GAAP measures without unreasonable effort. Broadcom believes
non-GAAP financial information provides additional insight into the Company’s
on-going performance. Therefore, Broadcom provides this information to investors
for a more consistent basis of comparison and to help them evaluate the results
of the Company’s on-going operations and enable more meaningful period to period
comparisons.
In addition to GAAP reporting, Broadcom provides investors with net income,
operating income, gross margin, operating expenses, cash flow and other data on
a non-GAAP basis. This non-GAAP information excludes amortization of
acquisition-related intangible assets, stock-based compensation expense,
restructuring and other charges, acquisition-related costs, including
integration costs, non-GAAP tax reconciling adjustments, and other adjustments.
Management does not believe that these items are reflective of the Company’s
underlying performance. Internally, these non-GAAP measures are significant
measures used by management for purposes of evaluating the core operating
performance of the Company, establishing internal budgets, calculating return on
investment for development programs and growth initiatives, comparing
performance with internal forecasts and targeted business models, strategic
planning, evaluating and valuing potential acquisition candidates and how their
operations compare to the Company’s operations, and benchmarking performance
externally against the Company’s competitors. The exclusion of these and other
similar items from Broadcom’s non-GAAP financial results should not be
interpreted as implying that these items are non-recurring, infrequent or
unusual.
Free cash flow measures have limitations as they omit certain components of the
overall cash flow statement and do not represent the residual cash flow
available for discretionary expenditures. Investors should not consider
presentation of free cash flow measures as implying that stockholders have any
right
3
to such cash. Broadcom’s free cash flow may not be calculated in a manner
comparable to similarly named measures used by other companies.
About Broadcom
Broadcom Inc. (NASDAQ: AVGO) is a technology leader that designs, develops, and
supplies semiconductors and infrastructure software for global organizations’
complex, mission-critical needs. Broadcom combines long-term R&D investment with
superb execution to deliver the best technology, at scale. Broadcom is a
Delaware corporation headquartered in Palo Alto, CA. For more information, visit
www.broadcom.com.
Cautionary Note Regarding Forward-Looking Statements
This announcement contains forward-looking statements (including within the
meaning of Section 21E of the United States Securities Exchange Act of 1934, as
amended, and Section 27A of the United States Securities Act of 1933, as
amended) concerning Broadcom. These statements include, but are not limited to,
statements that address our expected future business and financial performance,
our plans and expectations with regard to our share repurchases, and other
statements identified by words such as “will,” “expect,” “believe,”
“anticipate,” “estimate,” “should,” “intend,” “plan,” “potential,” “predict,”
“project,” “aim,” and similar words, phrases or expressions. These forward-
looking statements are based on current expectations and beliefs of Broadcom’s
management, current information available to Broadcom’s management, and current
market trends and market conditions and involve risks and uncertainties that may
cause actual results to differ materially from those contained in these forward-
looking statements. Accordingly, undue reliance should not be placed on such
statements.
Particular uncertainties that could materially affect future results include
risks associated with: global economic conditions and uncertainty; government
regulations, trade restrictions and trade tensions; global political and
economic conditions relating to our international operations; cyclicality in the
semiconductor industry undergoing profound change due to AI; any loss of our
significant customers and fluctuations in the timing and volume of significant
customer demand; the slow or unsuccessful return on our research and development
investments, expansion of our business strategy or adoption of new business
models; our dependence on contract manufacturing and outsourced supply chain;
our dependency on a limited number of suppliers; our ability to continue winning
business in the semiconductor solutions industry; our ability to accurately
estimate customers’ demand and adjust our manufacturing and supply chain
accordingly; dependence on senior management and our ability to attract and
retain qualified personnel; our ability to maintain or improve gross margin; our
ability to protect against cybersecurity threats and a breach of security
systems; prolonged disruptions of our, our customers’ or our suppliers’
facilities or other significant operations; our ability to maintain appropriate
manufacturing capacity and quality; dependence on and risks associated with
distributors and other channel partners of our products; ability of our software
portfolio to manage and secure IT infrastructures and environments; demand for
our data center virtualization products and customer acceptance of our software,
services and business strategy; competitiveness of our software solutions and
compatibility of our software with operating environments, platforms or third-
party products; our ability to enter into satisfactory software license
agreements; use of open source software in our software and services; sales to
government customers; our ability to manage our software solutions and services
lifecycles; our competitive performance; quarterly and annual fluctuations in
operating results; any acquisitions or dispositions we may make, such as delays,
challenges and expenses associated with receiving governmental and regulatory
approvals and satisfying other closing conditions, and with
4
integrating acquired businesses with our existing businesses and our ability to
achieve the benefits, growth prospects and synergies expected by such
acquisitions; involvement in legal proceedings; our ability to protect our
intellectual property and the unpredictability of any associated litigation
expenses; any expenses or reputational damage associated with resolving customer
product warranty and indemnification claims, or other undetected defects or
bugs; our compliance with privacy and data security laws; corporate
responsibility matters; our provision for income taxes and overall cash tax
costs; our ability to maintain tax concessions in certain jurisdictions;
potential tax liabilities as a result of acquiring VMware; our significant
indebtedness and the need to generate sufficient cash flows to service and repay
such debt; the amount and frequency of our share repurchase program; and other
events and trends on a national, regional, industry-specific and global scale,
including those of a political, economic, business, competitive and regulatory
nature.
Our filings with the SEC, which are available without charge at the SEC’s
website at https://www.sec.gov, discuss some of the important risk factors that
may affect our business, results of operations and financial condition. Actual
results may vary from the estimates provided. We undertake no intent or
obligation to publicly update or revise any of the estimates and other forward-
looking statements made in this announcement, whether as a result of new
information, future events or otherwise, except as required by law.
Contact:
Ji Yoo
Broadcom Inc.
Investor Relations
650-427-6000
investor.relations@broadcom.com
(AVGO-Q)
5
BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
(IN MILLIONS, EXCEPT PER SHARE DATA)
Three
Fisc… August May August Fisc… August Augu…
Quar… 2, 3, 3, Quar… 2, 3,
Ended 2026 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 29,591 $ 22,1… $ 15,952 $ 71,089 $ 45,8…
reve…
Cost
of
reve…
Cost
of 7,624 5,301 3,704 17,604 10,2…
reve…
Amor…
of
acqu… 1,499 1,461 1,519 4,422 4,486
inta…
asse…
Rest… 12 10 26 35 68
char…
Total
cost 9,135 6,772 5,249 22,061 14,8…
of
reve…
Gross 20,456 15,4… 10,703 49,028 31,0…
marg…
Rese…
and 2,895 2,995 3,050 8,855 7,996
deve…
Sell…
gene… 996 1,055 1,072 3,070 3,104
and
admi…
Amor…
of
acqu… 507 506 507 1,520 1,524
inta…
asse…
Rest…
and 103 71 187 277 445
other
char…
Total
oper… 4,501 4,627 4,816 13,722 13,0…
expe…
Oper… 15,955 10,7… 5,887 35,306 17,9…
inco…
Inte… -778 -776 -807 -2,355 -2,4…
expe…
Other
inco… 98 118 205 649 333
net
Inco…
befo… 15,275 10,1… 5,285 33,600 15,8…
inco…
taxes
Prov…
for 2,187 820 1,145 3,853 1,252
inco…
taxes
Net $ 13,088 $ 9,310 $ 4,140 $ 29,747 $ 14,6…
inco…
Net
inco…
per
shar…
Basic $ 2.75 $ 1.96 $ 0.88 $ 6.26 $ 3.10
Dilu… $ 2.68 $ 1.91 $ 0.85 $ 6.09 $ 3.02
Weig…
shar…
used
in
per
share
calc…
Basic 4,766 4,747 4,714 4,752 4,705
Dilu… 4,887 4,876 4,860 4,884 4,841
Stoc…
comp…
expe…
Cost
of $ 224 $ 223 $ 251 $ 683 $ 607
reve…
Rese…
and 1,344 1,395 1,573 4,186 3,564
deve…
Sell…
gene… 451 474 498 1,418 1,202
and
admi…
Total
stoc… $ 2,019 $ 2,092 $ 2,322 $ 6,287 $ 5,373
comp…
expe…
BROADCOM INC.
FINANCIAL RECONCILIATION: GAAP TO NON-GAAP — UNAUDITED
(IN MILLIONS)
Three
Fisc… August May August Fisc… August Augu…
Quar… 2, 3, 3, Quar… 2, 3,
Ended 2026 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Gross
marg…
on $ 20,456 $ 15,4… $ 10,703 $ 49,028 $ 31,0…
GAAP
basis
Amor…
of
acqu… 1,499 1,461 1,519 4,422 4,486
inta…
asse…
Stoc…
comp… 224 223 251 683 607
expe…
Rest… 12 10 26 35 68
char…
Gross
marg…
on $ 22,191 $ 17,1… $ 12,499 $ 54,168 $ 36,2…
non-…
basis
Rese…
and
deve… $ 2,895 $ 2,995 $ 3,050 $ 8,855 $ 7,996
on
GAAP
basis
Stoc…
comp… 1,344 1,395 1,573 4,186 3,564
expe…
Rese…
and
deve… $ 1,551 $ 1,600 $ 1,477 $ 4,669 $ 4,432
on
non-…
basis
Sell…
gene…
and
admi… $ 996 $ 1,055 $ 1,072 $ 3,070 $ 3,104
expe…
on
GAAP
basis
Stoc…
comp… 451 474 498 1,418 1,202
expe…
Acqu… — — 7 2 204
costs
Sell…
gene…
and
admi… $ 545 $ 581 $ 567 $ 1,650 $ 1,698
expe…
on
non-…
basis
Total
oper…
expe… $ 4,501 $ 4,627 $ 4,816 $ 13,722 $ 13,0…
on
GAAP
basis
Amor…
of
acqu… 507 506 507 1,520 1,524
inta…
asse…
Stoc…
comp… 1,795 1,869 2,071 5,604 4,766
expe…
Rest…
and 103 71 187 277 445
other
char…
Acqu… — — 7 2 204
costs
Total
oper…
expe… $ 2,096 $ 2,181 $ 2,044 $ 6,319 $ 6,130
on
non-…
basis
Oper…
inco…
on $ 15,955 $ 10,7… $ 5,887 $ 35,306 $ 17,9…
GAAP
basis
Amor…
of
acqu… 2,006 1,967 2,026 5,942 6,010
inta…
asse…
Stoc…
comp… 2,019 2,092 2,322 6,287 5,373
expe…
Rest…
and 115 81 213 312 513
other
char…
Acqu… — — 7 2 204
costs
Oper…
inco…
on $ 20,095 $ 14,9… $ 10,455 $ 47,849 $ 30,0…
non-…
basis
Inte…
expe…
on $ -778 $ -776 $ -807 $ -2,355 $ -2,4…
GAAP
basis
Loss
on 75 31 53 161 118
debt
exti…
Inte…
expe…
on $ -703 $ -745 $ -754 $ -2,194 $ -2,3…
non-…
basis
Other
inco…
net $ 98 $ 118 $ 205 $ 649 $ 333
on
GAAP
basis
Exci…
tax — — — -315 —
bene…
Gain
from
sale — — -163 — -163
of
busi…
Other — — 29 — 8
Other
inco…
net $ 98 $ 118 $ 71 $ 334 $ 178
on
non-…
basis
Three
Fisc… August May August Fisc… August Augu…
Quar… 2, 3, 3, Quar… 2, 3,
Ended 2026 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Prov…
for
inco…
taxes $ 2,187 $ 820 $ 1,145 $ 3,853 $ 1,252
on
GAAP
basis
Non-…
tax 931 1,407 223 3,505 2,657
reco…
adju…
Prov…
for
inco…
taxes $ 3,118 $ 2,227 $ 1,368 $ 7,358 $ 3,909
on
non-…
basis
Net
inco…
on $ 13,088 $ 9,310 $ 4,140 $ 29,747 $ 14,6…
GAAP
basis
Amor…
of
acqu… 2,006 1,967 2,026 5,942 6,010
inta…
asse…
Stoc…
comp… 2,019 2,092 2,322 6,287 5,373
expe…
Rest…
and 115 81 213 312 513
other
char…
Acqu… — — 7 2 204
costs
Loss
on 75 31 53 161 118
debt
exti…
Exci…
tax — — — -315 —
bene…
Gain
from
sale — — -163 — -163
of
busi…
Other — — 29 — 8
Non-…
tax -931 -1,4… -223 -3,505 -2,6…
reco…
adju…
Net
inco…
on $ 16,372 $ 12,0… $ 8,404 $ 38,631 $ 24,0…
non-…
basis
Weig…
shar…
used
in
per
share 4,887 4,876 4,860 4,884 4,841
calc…
-
dilu…
on
GAAP
basis
Non-… 50 64 112 61 94
adju…
Weig…
shar…
used
in
per
share 4,937 4,940 4,972 4,945 4,935
calc…
-
dilu…
on
non-…
basis
Net
cash
prov… $ 14,197 $ 10,4… $ 7,166 $ 32,950 $ 19,8…
by
oper…
acti…
Purc…
of
prop… -532 -231 -142 -1,013 -386
plant
and
equi…
Free
cash $ 13,665 $ 10,2… $ 7,024 $ 31,937 $ 19,4…
flow
(1) Non-GAAP adjustment for the number of shares
used in the diluted per share calculations
excludes the impact of stock-based compensation
expense expected to be incurred in future periods
and not yet recognized in the financial
statements, which would otherwise be assumed to be
used to repurchase shares under the GAAP treasury
stock method.
BROADCOM INC.
CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED
(IN MILLIONS)
August 2, November 2,
2026 2025
──────────────────────────────────────────────────────────────────────────
ASSETS
Current assets:
Cash and cash equivalents $ 23,975 $ 16,178
Trade accounts receivable, net 13,707 7,145
Inventory 4,523 2,270
Other current assets 9,968 5,980
Total current assets 52,173 31,573
Long-term assets:
Property, plant and equipment, net 3,144 2,530
Goodwill 97,801 97,801
Intangible assets, net 26,325 32,273
Other long-term assets 8,705 6,915
Total assets $ 188,148 $ 171,092
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 4,000 $ 1,560
Employee compensation and benefits 1,506 2,129
Short-term debt 2,252 3,152
Other current liabilities 13,080 11,673
Total current liabilities 20,838 18,514
Long-term liabilities:
Long-term debt 57,167 61,984
Other long-term liabilities 10,453 9,302
Total liabilities 88,458 89,800
Stockholders’ equity:
Preferred stock — —
Common Stock 5 5
Additional paid-in capital 77,330 71,308
Retained earnings 22,151 9,761
Accumulated other comprehensive income 204 218
Total stockholders' equity 99,690 81,292
Total liabilities and equity $ 188,148 $ 171,092
BR…
IN…
CO…
CO…
ST…
OF
CA…
FL…
—
UN…
(IN Thr…
MI… Fis… Fis…
Ca… Qua… Qua…
fl… End… End…
fr… Aug… May Aug… Aug… Aug…
op… 2, 3, 3, 2, 3,
ac… 2026 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 13,… $ 9,3… $ 4,140 $ 29,7… $ 14,6…
in…
Ad…
to
re…
net
in…
to
net
ca…
pr…
by
op…
ac…
Am…
of
in… 2,0… 2,0… 2,060 6,047 6,116
and
ri…
as…
De… 171 163 142 484 426
St… 2,0… 2,0… 2,322 6,287 5,373
co…
De…
ta…
and 7 -603 284 -1,0… -983
ot…
no…
ta…
Lo…
on 75 31 53 161 118
de…
ex…
No…
in… 65 67 82 204 273
ex…
Ot… 13 3 -23 31 58
Ch…
in
as…
and
li…
net
of
ac…
and
di…
Tr…
ac… -2,… -2,… -937 -6,5… -2,0…
re…
net
In… -195 -1,… -163 -2,2… -420
Ac… 1,6… 149 136 2,313 -236
pa…
Em…
co… 372 270 511 -619 -110
and
be…
Ot…
cu…
as… -2,… 474 -999 -2,8… -1,0…
and
cu…
li…
Ot…
lo…
as… 444 271 -442 1,036 -2,2…
and
lo…
li…
Net
ca…
pr… 14,… 10,… 7,166 32,9… 19,8…
by
op…
ac…
Ca…
fl…
fr…
in…
ac…
Pr…
fr…
sa… — — 300 — 300
of
bu…
Pu…
of
pr… -532 -231 -142 -1,0… -386
pl…
and
eq…
Pu…
of -619 -23 -99 -756 -261
in…
Sa…
of 37 39 51 320 147
in…
Ot… 1 7 -16 13 -13
Net
ca…
pr…
by -1,… -208 94 -1,4… -213
(u…
in)
in…
ac…
Ca…
fl…
fr…
fi…
ac…
Pr…
fr… — — 6,960 4,474 10,6…
lo…
bo…
Pa…
on -5,… -1,… -6,7… -10,… -14,…
de…
ob…
Pr…
fr…
(r…
of) — — -3,3… — 488
co…
pa…
net
Pa…
of -3,… -3,… -2,7… -9,2… -8,3…
di…
Re…
of
co…
st… — -600 — -8,4… -2,4…
-
re…
pr…
Sh…
re…
for
tax
wi… — — -58 — -3,8…
on
ve…
of
eq…
aw…
Is…
of — 113 — 113 118
co…
st…
Ot… -6 -2 -7 -45 -57
Net
ca…
us… -8,… -4,… -6,0… -23,… -18,…
in
fi…
ac…
Net
ch…
in
ca… 4,3… 5,4… 1,246 7,797 1,370
and
ca…
eq…
Ca…
and
ca…
eq… 19,… 14,… 9,472 16,1… 9,348
at
be…
of
pe…
Ca…
and
ca…
eq… $ 23,… $ 19,… $ 10,7… $ 23,9… $ 10,7…
at
end
of
pe…
Su…
di…
of
ca…
fl…
in…
Ca…
pa… $ 674 $ 695 $ 602 $ 1,988 $ 1,973
for
in…
Ca…
pa…
for $ 347 $ 1,0… $ 822 $ 2,228 $ 1,834
in…
ta…