Broadcom Posts $7.35B Net Income, Revenue Surges 29% in Q1 Fiscal 2026
Broadcom Inc. (NASDAQ: AVGO), a global technology infrastructure company, reported net income of $7.35 billion for the fiscal quarter ended February 1, 2026, up 34% from $5.50 billion in the prior-year period. Total revenue climbed to $19.31 billion from $14.92 billion.
Broadcom Inc. (NASDAQ: AVGO), a designer and developer of semiconductor and infrastructure software solutions, reported net income of $7.35 billion for the fiscal quarter ended February 1, 2026, up 34% from $5.50 billion in the same quarter a year earlier. Total net revenue rose 29% to $19.31 billion from $14.92 billion. Read more earnings reports.
The company's semiconductor solutions segment drove the revenue expansion, posting $12.52 billion in sales for the quarter, a 52% increase from $8.21 billion in the prior-year period. Infrastructure software revenue edged up 1% to $6.80 billion from $6.70 billion.
Operating income climbed 37% to $8.56 billion from $6.26 billion. The company's operating margin expanded to 44% of revenue from 42% in the year-ago quarter. Gross margin held steady at 68% of revenue in both periods.
| Fiscal Quarter Ended | February 1, 2026 | February 2, 2025 |
|---|---|---|
| Total net revenue | $19,311 million | $14,916 million |
| Operating income | $8,563 million | $6,260 million |
| Net income | $7,349 million | $5,503 million |
| Diluted EPS | $1.50 | $1.14 |
Product revenue, which includes semiconductor chips and hardware, jumped 39% to $14.13 billion from $10.14 billion. Subscriptions and services revenue rose 9% to $5.18 billion from $4.77 billion.
Research and development spending increased 32% to $2.97 billion from $2.25 billion. Stock-based compensation surged 70% to $2.18 billion from $1.28 billion, accounting for a significant portion of unallocated expenses.
The company generated $8.26 billion in operating cash flow for the quarter, up 35% from $6.11 billion in the prior-year period. Capital expenditures totaled $250 million, more than double the $100 million spent a year earlier.
Broadcom paid $3.09 billion in dividends to common stockholders during the quarter, up from $2.77 billion in the same period last year. The company also repurchased $7.85 billion of its common stock under its buyback program, reducing shares outstanding to 4.74 billion from 4.74 billion at the end of the prior quarter.
Total debt stood at $66.06 billion as of February 1, 2026, comprising $2.25 billion in short-term debt and $63.81 billion in long-term debt. Cash and cash equivalents declined to $14.17 billion from $16.18 billion at the end of the previous quarter.
Diluted earnings per share rose 32% to $1.50 from $1.14. The diluted share count increased to 4.89 billion shares from 4.84 billion shares, reflecting the impact of equity awards.
Segment Performance
Semiconductor solutions operating income surged 59% to $7.50 billion from $4.71 billion, with operating margin expanding as the segment scaled revenue. Infrastructure software operating income rose 4% to $5.32 billion from $5.12 billion.
Unallocated corporate expenses, which include stock compensation, acquisition-related intangible amortization, and restructuring charges, totaled $4.26 billion, up from $3.57 billion in the prior-year quarter.
Trade accounts receivable increased to $8.46 billion from $7.15 billion at the end of the prior quarter. Inventory rose to $2.96 billion from $2.27 billion. Accounts payable grew to $2.11 billion from $1.56 billion.
The company's balance sheet showed total assets of $169.90 billion as of February 1, 2026, down slightly from $171.09 billion three months earlier. Stockholders' equity declined to $79.87 billion from $81.29 billion, primarily due to share repurchases and dividend payments exceeding net income for the quarter.