AI Takeaway
Broadcom delivered a strong fiscal Q1 2026 with revenue surging 29.5% YoY to $19.3B, driven by robust semiconductor and infrastructure software demand, while operating margin expanded to 44.3% and free cash flow reached approximately $8.1B.
Revenue
$19.31B
++29.47% YoY
EPS (Basic)
$1.55
++32.48% YoY
Gross Margin
68.1%
++0.12% YoY
Operating Income
$8.56B
++36.79% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 29.5% YoY to $19.31B in Q1 FY2026 from $14.92B in Q1 FY2025, reflecting strong demand across Broadcom's semiconductor solutions and infrastructure software segments, likely fueled by continued AI-related chip demand and VMware integration contributions.
Source: Source: 10-Q Income Statement
Operating income rose 36.8% YoY to $8.56B, outpacing revenue growth, with operating margin expanding approximately 240 basis points to 44.3% from 42.0%, demonstrating meaningful operating leverage as revenue scales faster than operating expenses.
Source: Source: 10-Q Income Statement
R&D expenses increased 31.6% YoY to $2.97B, slightly outpacing revenue growth, signaling continued heavy investment in next-generation semiconductor and software technologies to sustain competitive positioning in AI and networking markets.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockBroadcom carries $66.06B in long-term debt, largely inherited from the VMware acquisition. While the company is deleveraging — total liabilities fell 5.8% YoY — this debt load remains substantial and exposes the company to refinancing risk and interest rate sensitivity.
Source: Source: 10-Q Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.05 versus the $2.07 analyst consensus — a -0.9% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $19.31B | $14.92B | +29.47% |
Cost of Revenue | $6.15B | $4.77B | +28.99% |
Gross Profit | $13.16B | $10.14B | +29.69% |
Operating Income | $8.56B | $6.26B | +36.79% |
EPS (Basic) | $1.55 | $1.17 | +32.48% |
EPS (Diluted) | $1.50 | $1.14 | +31.58% |
R&D Expense | $2.96B | $2.25B | +31.60% |
SG&A Expense | $1.02B | $949M | +7.38% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $169.9B | $165.36B | +2.75% |
Current Assets | $32.06B | $20.99B | +52.75% |
Total Liabilities | $90.03B | $95.57B | -5.79% |
Current Liabilities | $16.86B | $20.91B | -19.37% |
Cash & Equivalents | $14.17B | $9.31B | +52.29% |
Long-Term Debt | $66.06B | — | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $8.26B | $6.11B | +35.12% |
Investing Cash Flow | $-115M | $-174M | +33.91% |
Financing Cash Flow | $-10.15B | $-5.98B | -69.72% |
Dividends Paid | $3.09B | $2.77B | +11.25% |
Share Buybacks | $7.85B | $0 | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 68.1% | 68.0% | +0.12% |
Operating Margin | 44.3% | 42.0% | +2.37% |
Current Ratio | $1.902 | — | — |
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Broadcom reported Q1 FY2026 revenue of $19.31B, up 29.5% YoY, with diluted EPS of $1.50, up 31.6% YoY. Operating margin expanded to 44.3% from 42.0%, and operating cash flow grew 35.1% to $8.26B, reflecting broad-based strength across its semiconductor and software businesses.
Broadcom's 29.5% YoY revenue growth to $19.31B was driven by strong demand for AI networking and custom chip solutions from hyperscale cloud customers, as well as contributions from its infrastructure software segment including VMware. R&D investment also accelerated 31.6% YoY to $2.97B, signaling continued product development to sustain this growth.
Yes, Broadcom repurchased $7.85B in shares during Q1 FY2026, compared to zero buybacks in Q1 FY2025, representing a major acceleration in capital returns. Combined with $3.09B in dividends paid, total shareholder returns in the quarter exceeded $10.9B.
Broadcom carries $66.06B in long-term debt as of Q1 FY2026, but is actively deleveraging — total liabilities fell 5.8% YoY to $90.03B, and cash and equivalents grew 52.3% YoY to $14.17B. The current ratio of 1.90 indicates solid short-term liquidity despite the large debt load.
Key risks include Broadcom's $66.06B long-term debt burden from the VMware acquisition, concentration risk from AI hyperscaler spending (which drives much of the recent growth), and the sustainability of capital returns that exceeded operating cash flow in Q1 FY2026. VMware integration execution and the pace of R&D spending relative to revenue growth are also factors to monitor.