Updated
Updated · Trefis · Jul 27
Broadcom Posts $22.2 Billion Q2 Revenue, Guides Q3 to $29.4 Billion on AI Demand
Updated
Updated · Trefis · Jul 27

Broadcom Posts $22.2 Billion Q2 Revenue, Guides Q3 to $29.4 Billion on AI Demand

1 articles · Updated · Trefis · Jul 27

Summary

  • Broadcom reported record fiscal Q2 2026 revenue of $22.2 billion, up 48% from a year earlier, and said fiscal Q3 revenue should reach $29.4 billion.
  • AI chips drove the surge: revenue from that segment jumped 143% to $10.8 billion, while AI orders already booked topped $30 billion.
  • Margins are the key watchpoint as growth accelerates. Broadcom guided Q3 gross margin to about 74% as lower-margin custom AI silicon takes a bigger share of sales, though operating margin is expected near 67%.
  • The stock remains about 21% below its 52-week high and trades near 62 times earnings versus a market median around 24, underscoring how much future AI growth investors have already priced in.

Insights

Broadcom beat revenue estimates by billions, yet its stock plunged 14%—is the AI hype cycle finally breaking under impossible expectations?
With aggressive new VMware licensing rules sparking customer backlash, could a mass enterprise exodus silently threaten Broadcom's software empire?