Broadcom Inc. Q2 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Key Financial Highlights (Q2 FY2026 vs Q2 FY2025)

  • Consolidated Revenue: Record $22.2 billion, +48% YoY (above guidance), driven by AI semiconductors.
  • Semiconductor Revenue: Record $15.0 billion, +79% YoY; represented 68% of total revenue.
  • AI Semiconductor Revenue: Record $10.8 billion, +143% YoY (49% of total revenue); networking ~40% of AI revenue. Bookings exceeded $30 billion.
  • Infrastructure Software Revenue: $7.2 billion, +9% YoY; ARR growth sustained at +17% YoY.
  • Operating Margin: Record 67.3% (+200 bps YoY); operating expenses remained relatively flat despite scale.
  • Adjusted EBITDA: Record $15.2 billion (69% of revenue), above guidance of 68%.
  • Free Cash Flow: Record $10.3 billion (46% of revenue); cash balance $19.6 billion (vs $14.2 billion prior quarter).
  • Non-AI Semiconductor Revenue: $4.2 billion, +6% YoY; bookings >$6 billion indicating cyclical recovery.

Guidance: Q3 FY2026 (vs Q3 FY2025)

  • Consolidated Revenue: $29.4 billion, +84% YoY.
  • Semiconductor Revenue: ~$20.5 billion, +124% YoY; AI semiconductor revenue $16 billion, >+200% YoY.
  • Infrastructure Software Revenue: ~$8.9 billion, +31% YoY.

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Operator: Welcome to Broadcom Inc. Second quarter fiscal year 2026 Financial Results Conference Call. At this time, for opening remarks and introductions, I would like to turn the call over to Ji Yoo, Head of Investor Relations of Broadcom, Inc. Ji Yoo: Thank you, operator, and good afternoon, everyone. Joining me on today's call are Hock E. Tan, President and CEO; Charlie Kawwas, President, Semiconductor Solutions Group, and Ram Velaga, President, Infrastructure Software Group. Also joining is Kirsten Spears, chief financial officer. As we announced, Kirsten will be retiring June 12. And today, we have joining us our incoming chief financial officer, Amy Teiner. Thank you, Kirsten, for your leadership over the past 12 years. Broadcom distributed a press release and financial tables after the market closed describing our financial performance for the second quarter fiscal year 2026. If you did not receive a copy, you may obtain the information from the investor section of Broadcom's website at broadcom.com. This conference call is being webcast live and an audio replay of the call can be accessed for 1 year through the Investors section of Broadcom's website. During the prepared comments, Hock and Kirsten will be providing details of our second quarter fiscal year 2026 results, guidance for our third quarter fiscal year 2026 as well as commentary regarding the business environment. We will take questions after the end of our prepared comments. Please refer to our press releas

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