Broadcom Earnings Beat as AI Revenue Doubles
Broadcom earnings beat on March 4, 2026 as AI demand doubled AI revenue; company guided Q2 revenue higher and authorized a $10.0 billion buyback.
KEY TAKEAWAYS
- Q1 revenue $19.3 billion, up 29.0% year-over-year and above estimates.
- AI revenue more than doubled and was the primary growth driver.
- Guided Q2 revenue to about $22.0 billion, a 47.0% year-over-year increase.
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Broadcom Inc. (AVGO) reported first-quarter results on March 4, 2026, showing accelerating AI-chip demand that boosted revenue and prompted management to raise its second-quarter outlook and authorize a new share-repurchase program.
First-Quarter Results and Second-Quarter Outlook
Broadcom announced first-quarter fiscal 2026 results, second-quarter guidance, a dividend, and a buyback program in a press release at 4:15 p.m. ET on March 4. For the quarter ended February 1, the company reported revenue of $19.3 billion, up 29.0% year-over-year and above consensus estimates of $19.2 billion. AI-related revenue more than doubled year-over-year and was the primary driver of growth.
GAAP net income was $7.3 billion, while non-GAAP net income reached $10.2 billion. Adjusted EBITDA, a proxy for operating profit, totaled $13.1 billion, or 68.0% of revenue. GAAP diluted earnings per share were $1.50, and non-GAAP diluted EPS was $2.05.
Broadcom guided second-quarter revenue to about $22.0 billion, a 47.0% increase from the prior year, with adjusted EBITDA expected to remain near 68.0% of revenue. Management attributed the outlook to sustained AI demand for data-center chips.
Cash Flow and Capital Returns
Operating cash flow totaled $8.3 billion, and free cash flow was $8.0 billion, equal to 41.0% of revenue after $250 million in capital expenditures. The board declared a quarterly dividend of $0.65 per share.
The company also authorized a new $10.0 billion share-repurchase program. Strong margins and robust free-cash-flow conversion supported the expanded outlook and the decision to return additional capital to shareholders.
