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Sentiment · FY2026 Q2
Reporting soon: earnings call Wednesday, Sep 2
A pre-earnings brief is ready for AVGO: the setup, what peers and partners said this season, and which analysts to watch. Reading it is a Tellvest Pro feature.
Broadcom's Q1 FY2026 delivered record operating income of $12.8 billion, up 31% year-over-year, as revenue grew 29.5% and GAAP EPS rose 31.6%. AI semiconductor revenue acceleration continued with custom XPU customer expansion and AI networking share gains. Management introduced a landmark forward anchor of over $100 billion in AI chip revenue by 2027 and guided Q2 to $22 billion representing 47% growth. VMware Cloud Foundation growth continued while non-AI semiconductors remained flat.
Cloud & AI | Revenue Growth | Competitive Dynamics | Guidance Reliability | Innovation & R&D | Margin | Demand | Capex Investment | |
|---|---|---|---|---|---|---|---|---|
| 2024Q4 | 10 | 7 | 2 | 2 | 1 | 2 | 1 | |
| 2025Q1 | 10 | 4 | 5 | 4 | 3 | 1 | ||
| 2025Q2 | 13 | 8 | 7 | 5 | 5 | 2 | 1 | |
| 2025Q3 | 9 | 9 | 7 | 4 | 3 | 1 | 2 | |
| 2025Q4 | 11 | 7 | 4 | 4 | 3 | 1 | 1 | 2 |
| 2026Q1 | 9 | 6 | 6 | 3 | 5 | 1 | 1 |
| '24Q4 | '25Q1 | '25Q2 | '25Q3 | '25Q4 | '26Q1 | |
|---|---|---|---|---|---|---|
| Cloud & AI | 10 | 10 | 13 | 9 | 11 | 9 |
| Revenue Growth | 7 | 4 | 8 | 9 | 7 | 6 |
| Competitive Dynamics | 2 | 5 | 7 | 7 | 4 | 6 |
| Guidance Reliability | 2 | 4 | 5 | 4 | 4 | 3 |
| Innovation & R&D | 1 | 3 | 5 | 3 | 3 | 5 |
| Margin | 2 | 2 | 1 | 1 | 1 | |
| Demand | 1 | 1 | 2 | 1 | ||
| Capex Investment | 1 | 2 | 1 |
| Quarter | Revenue | Rev YoY | EPS | EPS YoY | Gross margin | Op margin | Net margin | FCF |
|---|---|---|---|---|---|---|---|---|
| FY2024 Q4 | $14.05B | +51.2% | $0.90 | +8.4% | 64.1% | 32.9% | 30.8% | $5.48B |
| FY2025 Q1 | $14.92B | +24.7% | $1.14 | +307.1% | 68.0% | 42.0% | 36.9% | $6.01B |
| FY2025 Q2 | $15.00B | +20.2% | $1.03 |
| Analyst | Firm | Questions (Challenge)Percentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions. |
|---|---|---|
| Stacy Rasgon | Bernstein | 8 (0%) |
| Ben Reitzes | Melius Research | 7 (0%) |
| Harlan Sur | JPMorgan |
| +134.1% |
| 68.0% |
| 38.8% |
| 33.1% |
| $6.41B |
| FY2025 Q3 | $15.95B | +22.0% | $0.85 | +312.5% | 67.1% | 36.9% | 26.0% | $7.02B |
| FY2025 Q4 | $18.02B | +28.2% | $1.74 | +93.3% | 68.0% | 41.7% | 47.3% | $7.47B |
| FY2026 Q1 | $19.31B | +29.5% | $1.50 | +31.6% | 65.6% | 45.0% | 38.1% | $8.01B |
| FY2026 Q2 | $22.19B | +47.9% | $1.91 | +85.4% | 67.2% | 49.0% | 42.0% | $10.26B |
Management’s own words, often on a non-GAAP, constant-currency, or adjusted basis — so these can differ from the GAAP figures above (e.g. constant-currency revenue growth excludes currency swings).
| CJ Muse | Cantor Fitzgerald | 7 (14%) |
| Ross Seymore | Deutsche Bank | 7 (14%) |
| Vivek Arya | Bank of America | 6 (33%) |
| Blayne Curtis | Jefferies | 5 (0%) |
| Joe Moore | Morgan Stanley | 5 (0%) |
| Tim Arcuri | UBS | 4 (25%) |
| Vijay Rakesh | Mizuho Securities | 4 (0%) |
| Firm | Analysts | Questions (Challenge)Percentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions. |
|---|---|---|
| Bernstein | 1 | 8 (0%) |
| JPMorgan | 1 | 7 (0%) |
| Melius Research | 1 | 7 (0%) |
| Cantor Fitzgerald | 1 | 7 (14%) |
| Deutsche Bank | 1 | 7 (14%) |
| Bank of America | 1 | 6 (33%) |
| Goldman Sachs | 2 | 5 (0%) |
| Jefferies | 1 | 5 (0%) |
What AVGO and other companies said about each other on FY2026 Q1 earnings calls — extracted verbatim from public transcripts. Mentions from the newest quarter are a Pro feature.
“Our relationship with vendor have been very long time, right, including NVIDIA, AMD, Intel, Broadcom.”
Super Micro cites Broadcom among its long-standing key component vendors it expects to keep working with closely.
“rolling out more than 1 gigawatt of our own custom silicon that we're developing with Broadcom”
Meta is co-developing more than 1 gigawatt of custom AI silicon with Broadcom, a positive read-through for Broadcom's custom-silicon franchise as Meta scales its compute efficiency initiative.
“we literally rewrite every piece of software and know all the Broadcom chip transistors very well”
Arista highlights deep integration with Broadcom silicon in its Blue Box/EOS platforms, reflecting its reliance on Broadcom merchant switching chips.
“you're also competing against NVIDIA, who is by no means letting down their guard. They are producing better and better chips with every passing generation.”
Broadcom framed NVIDIA as the benchmark competitor its XPU customers must beat, noting NVIDIA keeps producing better chips each generation.
“We expect OpenAI deploying in volume their first-generation XPU in 2027 at over 1 gigawatt of compute capacity.”
OpenAI is Broadcom's newly added sixth custom-silicon customer, expected to deploy its first-gen XPU in volume in 2027 at 1+ GW of compute.
“contrary to recent analyst reports, Meta's custom accelerator MTIA road map is alive and well. We're shipping now.”
Broadcom rebutted reports of weakness in Meta's MTIA custom accelerator program, confirming it is shipping now and scaling to multiple gigawatts in 2027+.
“For Anthropic, we are off to a very good start in 2026 for 1 gigawatt of TPU compute. And for '27, this demand is expected to surge in excess of 3 gigawatts of compute.”
Anthropic is a Broadcom custom-accelerator customer ramping to 1 GW of TPU compute in 2026 and 3+ GW in 2027, signaling large-scale AI infrastructure commitments.
“For Google, we continue our trajectory of growth in '26 with strong demand for the seventh-generation Ironwood TPU.”
Google is a custom-AI-accelerator (TPU) customer of Broadcom, with strong demand for the seventh-gen Ironwood TPU and even stronger expected in 2027, a positive read-through for Google's AI compute buildout.
| Company | Score | Trend | Rev YoY |
|---|---|---|---|
AVGO Broadcom Inc. | 9 | +29.5% | |
| ADI Analog Devices | 9 | +30.4% | |
| ALAB Astera Labs, Inc. Common Stock | 9 | +93.4% | |
| AMAT Applied Materials | 5 | -2.1% | |
| AMD Advanced Micro Devices, Inc. | 9 | +37.9% | |
| ARM Arm Holdings | 7 | +20.1% | |
| ASML ASML Holding | 9 | +13.3% | |
| INTC Intel Corporation | 6 | +7.2% | |
| KLAC KLA Corporation | 7 | +11.5% | |
| LRCX Lam Research | 9 | +23.8% | |
| MCHP Microchip Technology | 9 | +35.1% | |
| MPWR Monolithic Power Systems | 10 | +26.1% | |
| MRVL Marvell Technology | 10 | +22.1% | |
| MU Micron Technology, Inc. | 9 | +196.3% | |
| NVDA NVIDIA Corporation | 10 | +73.2% | |
| NXPI NXP Semiconductors | 7 | +12.2% | |
| ON ON Semiconductor | 6 | +4.7% | |
| Q Qnity Electronics, Inc. | 10 | +17.6% | |
| QCOM Qualcomm | 3 | -3.5% | |
| SWKS Skyworks Solutions | 3 | -1.0% | |
| TER Teradyne | 9 | +87.0% | |
| TXN Texas Instruments | 9 | +18.6% |