Broadcom (AVGO) posted fiscal 2026 second‑quarter earnings that surpassed Wall Street forecasts, with the stock trading around $411 per share.
Quarterly Performance
Revenue climbed to $22.2 billion, a 48% year‑over‑year increase that edged past the consensus estimate of $22.13 billion. Adjusted EBITDA rose 52% to $15.2 billion, delivering a 69% margin, while earnings per share reached $2.44 against the projected $2.40.
AI semiconductor sales surged to $10.8 billion, marking a 143% jump from the prior year and reflecting strong demand for application‑specific accelerators and AI networking gear. Free cash flow expanded 60% to $10.3 billion after a modest $231 million capital‑expenditure outlay.
Market Outlook
Investors responded positively, maintaining Broadcom’s market capitalization near $1.96 trillion despite a 2% dip last month. The company’s fabless model keeps capital intensity low, supporting continued cash generation.
For the upcoming third quarter, Broadcom projects AI semiconductor revenue of $16 billion, a target that could bolster its role in blockchain and crypto infrastructure as demand for high‑performance compute rises.