AVGO Q1 2026 Earnings

Call Details

• Call Title: Broadcom Q1 2026 Earnings Call
• Date: March 4, 2026 at 10:00 PM UTC
• Management Team:
  • Ji Yu (Head of Investor Relations)
  • Hock Tan (Chief Executive Officer)
  • Kirsten Spears (Chief Financial Officer)
  • Charlie Kawwas (President Semiconductor Solutions Group)
  • Ram Balaga (President Infrastructure Software Group)

Call Summary

Financial Performance

• Consolidated revenue was $19.3B for the quarter, up 29% year-on-year.
• Consolidated adjusted EBITDA was $13.1B, representing 68% of revenue and above the prior guidance of 67%.
• Semiconductor revenue was a record $12.5B, up 52% year-on-year and representing 65% of total revenue.
• AI semiconductor revenue was $8.4B, up 106% year-on-year, while non-AI semiconductor revenue was $4.1B and flat year-on-year.
• Infrastructure software revenue was $6.8B, up 1% year-on-year, with VMware revenue up 13% year-on-year and ARR growth of 19% year-on-year.
• Gross margin was 77% of revenue and operating income was $12.8B, up 31% year-on-year with operating margin of 66.4%.
• Free cash flow was $8.0B, representing 41% of revenue, and capital expenditures were $250M for the quarter.
• Inventory totaled $3.0B with days of inventory at 68 days compared to 58 days in the prior quarter.

Guidance

• Q2 consolidated revenue is guided to approximately $22.0B, up 47% year-on-year.
• Q2 semiconductor revenue is guided to approximately $14.8B, up 76% year-on-year.
• Q2 AI semiconductor revenue is guided to $10.7B, up approximately 140% year-on-year.
• Q2 infrastructure software revenue is guided to approximately $7.2B, up 9% year-on-year.
• Q2 consolidated gross margin is guided to be flat sequentially at 77% and adjusted EBITDA is guided to be approximately 68% of revenue.
• Q2 non-GAAP tax rate is guided to be approximately 16.5% due to the global minimum tax and geographic mix differences versus FY25.
• The non-GAAP diluted share count for Q2 is expected to be approximately 4.94B shares, excluding potential repurchases.