Broadcom Revenue Climbs 29% to $19.3B in Q1 FY2026 as Net Income Jumps 34%

Broadcom Inc. (NASDAQ: AVGO), a global semiconductor and infrastructure software company, reported net revenue of $19.31 billion for the fiscal quarter ended February 1, 2026, up 29% from $14.92 billion in the year-ago quarter. Net income climbed 34% to $7.35 billion compared with $5.50 billion in the quarter ended February 2, 2025. Read more earnings reports.

The company's semiconductor solutions segment drove much of the revenue growth, posting $12.52 billion in net revenue for the quarter, a 52% increase from $8.21 billion in the prior-year period. Infrastructure software revenue inched up 1% to $6.80 billion from $6.70 billion.

Operating income for the quarter reached $8.56 billion, a 37% increase from $6.26 billion in the same quarter last year. The company maintained a 68% gross margin in both periods despite higher cost of revenue, which rose to $6.15 billion from $4.77 billion year-over-year.

Diluted earnings per share came in at $1.50, up from $1.14 in the prior-year quarter. Basic earnings per share rose to $1.55 from $1.17.

Product Revenue Outpaces Services

Product revenue totaled $14.13 billion for the quarter, representing 73% of total revenue and marking a substantial increase from $10.14 billion in the year-ago period. Subscriptions and services revenue reached $5.18 billion, up from $4.77 billion, accounting for 27% of total revenue.

Operating expenses increased to $4.59 billion from $3.89 billion year-over-year. Research and development spending rose to $2.97 billion from $2.25 billion, while selling, general and administrative expenses climbed to $1.02 billion from $949 million.

Stock-based compensation expense jumped sharply to $2.18 billion from $1.28 billion in the prior-year quarter. Amortization of acquisition-related intangible assets totaled $1.97 billion, down slightly from $2.00 billion.

Cash Position and Capital Allocation

Cash and cash equivalents stood at $14.17 billion as of February 1, 2026, down from $16.18 billion at the end of the prior quarter on November 2, 2025. The company generated $8.26 billion in operating cash flow during the quarter, up from $6.11 billion in the year-ago period.

Broadcom returned significant capital to shareholders during the quarter, paying $3.09 billion in dividends and repurchasing $7.85 billion of common stock. The company also repurchased $2.04 billion in shares for tax withholdings on vesting equity awards.

Long-term debt increased to $63.81 billion from $61.98 billion at the end of the prior quarter. Short-term debt decreased to $2.25 billion from $3.15 billion. Total stockholders' equity declined to $79.87 billion from $81.29 billion as of November 2, 2025.

Segment Performance

Operating income in the semiconductor solutions segment surged 59% to $7.50 billion from $4.71 billion year-over-year. Infrastructure software operating income rose 4% to $5.32 billion from $5.12 billion. Unallocated expenses, primarily stock-based compensation and amortization, totaled $4.26 billion compared with $3.57 billion in the prior-year quarter.

Trade accounts receivable rose to $8.46 billion from $7.15 billion at the end of the prior quarter. Inventory climbed to $2.96 billion from $2.27 billion. Goodwill remained flat at $97.80 billion while intangible assets declined to $30.30 billion from $32.27 billion as amortization continued.

The provision for income taxes totaled $846 million for the quarter compared with a benefit of $13 million in the prior-year period. Interest expense declined to $801 million from $873 million. Other income rose to $433 million from $103 million.