More from AVGO Q3 2026

Broadcom Inc.

AVGO2026 Q3Technology

Broadcom maps multi-year custom accelerator deployments across frontier AI labs

Anthropic is expected to deploy 1 gigawatt of Ironwood in 2026, 5 gigawatts of TPU v8i in 2027, and an additional 10 gigawatts in 2028.
OpenAI is targeting 1.3 gigawatts of Jalapeno in 2027 and more than 5 gigawatts of Jalapeno and its successor generation in 2028.
Meta is expected to receive three generations of MTIA accelerators between now and the end of 2027, with line of sight to 3 gigawatts through 2028.
Google has signed a long-term agreement covering future TPU generations and AI networking, with planned annual TPU deliveries in the multiple tens of billions of dollars.
Management said not all outlined gigawatts will necessarily enter production within the stated fiscal periods because data-center readiness determines shipment timing.

Broadcom Inc.

AVGO2026 Q3Technology

Financial Performance Summary

AI semiconductor revenue rose 221% year-over-year and 54% sequentially to $16.7 billion, representing 56% of total revenue.
Consolidated gross margin was 75%, 210 basis points lower sequentially because of AI semiconductor mix but above the 74% guidance.
Non-GAAP EPS was $3.32, up 96% year-over-year.
Operating income was a record $20.1 billion, up 92% year-over-year, while operating margin expanded 240 basis points to 67.9%.
Q3 consolidated revenue reached a record $29.6 billion, up 86% year-over-year.
Q3 free cash flow was a record $13.7 billion, or 46% of revenue; cash ended at $24 billion after $5.6 billion of debt repayment.
Semiconductor Solutions revenue increased 127% year-over-year to $20.8 billion, while infrastructure software revenue grew 29% to $8.8 billion.

Broadcom Inc.

AVGO2026 Q3Technology

The adoption also on this device has surprised us, and we're starting to see it deployed starting actually this quarter and in FY '27 coming up in scale-up applications.

Charlie Kawwas

President, Broadcom Inc.

Context

Charlie Kawwas was describing customer adoption of Tomahawk Ultra for low-latency Ethernet scale-up applications. Kawwas said Tomahawk Ultra is being adopted for scale-up in both XPU and some GPU clusters. Initial deployments were beginning in the current quarter, with broader activity expected in fiscal 2027.

More from AVGO Q3 2026

Broadcom Inc.

AVGO2026 Q3Technology

Broadcom maps multi-year custom accelerator deployments across frontier AI labs

Anthropic is expected to deploy 1 gigawatt of Ironwood in 2026, 5 gigawatts of TPU v8i in 2027, and an additional 10 gigawatts in 2028.
OpenAI is targeting 1.3 gigawatts of Jalapeno in 2027 and more than 5 gigawatts of Jalapeno and its successor generation in 2028.
Meta is expected to receive three generations of MTIA accelerators between now and the end of 2027, with line of sight to 3 gigawatts through 2028.
Google has signed a long-term agreement covering future TPU generations and AI networking, with planned annual TPU deliveries in the multiple tens of billions of dollars.
Management said not all outlined gigawatts will necessarily enter production within the stated fiscal periods because data-center readiness determines shipment timing.

Broadcom Inc.

AVGO2026 Q3Technology

Financial Performance Summary

AI semiconductor revenue rose 221% year-over-year and 54% sequentially to $16.7 billion, representing 56% of total revenue.
Consolidated gross margin was 75%, 210 basis points lower sequentially because of AI semiconductor mix but above the 74% guidance.
Non-GAAP EPS was $3.32, up 96% year-over-year.
Operating income was a record $20.1 billion, up 92% year-over-year, while operating margin expanded 240 basis points to 67.9%.
Q3 consolidated revenue reached a record $29.6 billion, up 86% year-over-year.
Q3 free cash flow was a record $13.7 billion, or 46% of revenue; cash ended at $24 billion after $5.6 billion of debt repayment.
Semiconductor Solutions revenue increased 127% year-over-year to $20.8 billion, while infrastructure software revenue grew 29% to $8.8 billion.

Broadcom Inc.

AVGO2026 Q3Technology

The adoption also on this device has surprised us, and we're starting to see it deployed starting actually this quarter and in FY '27 coming up in scale-up applications.

Charlie Kawwas

President, Broadcom Inc.

Context

Broadcom Inc.: Q3 gross margin exceeded guidance despite heavier AI mix

More from AVGO Q3 2026

Broadcom Inc. 2026 Q3: Broadcom maps multi-year custom accelerator deployments across frontier AI labs

Broadcom Inc. 2026 Q3: Financial Performance summary

More from AVGO Q3 2026

More from AVGO Q3 2026

Broadcom Inc. 2026 Q3: Broadcom maps multi-year custom accelerator deployments across frontier AI labs

Broadcom Inc. 2026 Q3: Financial Performance summary