Broadcom reports $16.7B AI chip revenue, up 221%, in a $29.6B fiscal third quarter

What Broadcom reported

Broadcom published results for its fiscal third quarter of 2026 on 2 September 2026. Net revenue for the quarter ended 2 August 2026 was $29.6 billion, compared with $16.0 billion a year earlier, an increase of 86%. GAAP operating income was $16.0 billion and GAAP net income was $13.1 billion, or $2.68 per diluted share. On a non-GAAP basis, operating income was $20.1 billion and diluted earnings per share were $3.32.

The semiconductor solutions segment brought in $20.8 billion, or 70% of revenue, up 127% from a year earlier. Infrastructure software contributed $8.8 billion, up 29%. Cash from operations was $14.2 billion and free cash flow was $13.7 billion, or 46% of revenue. The board declared a quarterly dividend of $0.65 per share.

The AI number

"Demand for our custom AI accelerators and networking continues to be very strong," said Hock Tan, President and CEO of Broadcom. He put AI semiconductor revenue for the quarter at $16.7 billion, up 221% year over year and 54% from the previous quarter. That means AI chips made up more than half of total revenue and about 80% of the semiconductor segment in the quarter, based on the figures in the release.

For the fourth quarter, which ends on 1 November 2026, Tan said Broadcom expects AI semiconductor revenue to reach $21.7 billion, up 236% year over year. Total revenue guidance is about $34.8 billion, a 93% increase, with non-GAAP operating income at about 66% of revenue. CFO Amie Thuener said the company expects to hold that margin flat from a year ago.

Why it matters

Broadcom sells the custom accelerators and Ethernet networking that large cloud and AI companies use alongside or instead of off-the-shelf GPUs. Its AI line is one of the few disclosed revenue figures that tracks spending on in-house AI chips, so the 221% growth rate is a direct read on how fast that spending is rising. The release does not name the customers behind the growth, and it does not split AI revenue between accelerators and networking. The quarterly guidance implies AI revenue would rise by another $5.0 billion in a single quarter if the forecast holds.

What to watch next

Broadcom's fourth fiscal quarter closes on 1 November 2026, and the results will show whether AI semiconductor revenue reaches the $21.7 billion target. The release does not give a date for that report. Later results from the hyperscale cloud companies that buy custom chips will show how their own capital spending lines up with these figures. Further earnings and AI revenue disclosures will appear under AI Business & Funding.

Questions people ask

How much AI revenue did Broadcom report?

$16.7 billion of AI semiconductor revenue for the quarter ended 2 August 2026, up 221% year over year, according to the company's release.

What is Broadcom's AI revenue forecast?

Broadcom expects AI semiconductor revenue of $21.7 billion in the fourth fiscal quarter of 2026, up 236% year over year, and total revenue of about $34.8 billion.

Which customers drive Broadcom's AI revenue?

The release does not name them. It attributes the demand to custom AI accelerators and networking.

Sources

1. Broadcom Inc. Announces Third Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend (Exhibit 99.1, Form 8-K) (Broadcom Inc. via US Securities and Exchange Commission (EDGAR), 2 Sep 2026)