Broadcom Inc. Q1 FY2026 earnings call

Hawk Tan noted that in fiscal Q1 2026, total revenue reached a record $19.3 billion, up 29% year-on-year, with consolidated adjusted EBITDA hitting a record $13.1 billion, 68% of revenue. Expectations are for momentum to accelerate with custom AI XPUs. For the semiconductor segment, Q1 revenue was $12.5 billion, up 52% year-on-year, driven by AI semiconductor revenue growing 106% to $8.4 billion. Q2 guidance for semiconductor revenue is approximately $14.8 billion, up 76% year-on-year, with AI revenue expected to be $10.7 billion, up 140% year-on-year. The infrastructure software segment had Q1 revenue of $6.8 billion, flat year-on-year, with Q2 guidance of approximately $7.2 billion, up 9% year-on-year. VMware revenue grew 13% year-on-year, and bookings were strong. AI networking revenue in Q1 grew 60% year-on-year, representing one third of total AI revenue, and is projected to be 40% of total AI revenue in Q2.

Total revenue in fiscal Q1 2026 reached a record $19.3 billion, up 29% year-on-year. Semiconductor revenue was a record $12.5 billion, up 52% year-on-year driven by AI, with AI semiconductor revenue growing 106% year-on-year to $8.4 billion. Infrastructure software revenue was $6.8 billion, up 1% year-on-year. Semiconductor represented 65% of total revenue in the quarter, while infrastructure software represented 35%.

For Q2 2026, consolidated revenue is guided at approximately $22 billion, 47% year-on-year growth. Semiconductor revenue is forecasted to be approximately $14.8 billion, up 76% year-on-year, with AI semiconductor revenue at $10.7 billion, up 140% year-on-year. Infrastructure software revenue is expected to be approximately $7.2 billion, up 9% year-on-year. Consolidated gross margin is expected to be flat sequentially at 77%, and adjusted EBITDA is expected to be approximately 68% of revenue.

Refer to Broadcom's recent filings with the SEC for information on specific risk factors that could cause actual results to differ materially from the forward-looking statements made on this call.

Includes multiple exchanges such as analyst Blaine Curtis asking about AI chip revenue and hyperscaler Capex, Harlan Sir inquiring about COT initiatives and share gain, Ross Seymour on networking differentiation and percentage mix, CJ Muse on disaggregation impact, Timothy Arcuri on gross margin, Stacey Raskon on gigawatt projections, Ben Reitzis on supply visibility, Vivek Arya on customer engagements and chip vs rack, Tom O'Malley on networking protocol, Jim Schneider on inference applications, and Joshua Buckhalter on visibility and OpenAI deployment