Broadcom Inc. (AVGO) Announced Q1 2026 Earnings on March 4, 2026, Reporting "total revenue reached a record $19.3 billion"

In Q1 2026, Broadcom reported consolidated revenue of a record $19.3 billion, up 29 percent year-on-year.

Gross margin was 77 percent of revenue. Q1 operating income reached a record $12.8 billion.

Adjusted EBITDA was a record $13.1 billion, representing 68 percent of revenue.

Free cash flow for the quarter was $8 billion, which represented 41 percent of revenue.

The Semiconductor Solutions segment generated a record $12.5 billion in revenue, while infrastructure software revenue was $6.8 billion.

During the call, management highlighted that the ramp of custom AI accelerators across their customers is progressing very well.

Broadcom now has six customers for custom AI XPUs, including Google, Anthropic, Meta, and OpenAI. AI networking revenue grew 60 percent year-on-year and represented one-third of total AI revenue, driven by demand for the Tomahawk 6 switch and 200G SERDES. Additionally, VMware Cloud Foundation was emphasized as the essential software layer in data centers.

The company has fully secured capacity for leading-edge wafers, high-bandwidth memory, and substrates for 2026 through 2028.

For Q2 2026, Broadcom issued guidance for consolidated revenue of approximately $22 billion, up 47 percent year-on-year, with adjusted EBITDA expected to be approximately 68 percent of revenue.

Second-quarter semiconductor revenue is forecast at approximately $14.8 billion, with AI semiconductor revenue expected to be $10.7 billion.

Looking further ahead, management stated they have line of sight to achieve AI revenue from chips in excess of $100 billion in 2