Broadcom’s $29.6 billion quarter is mostly an AI semiconductor story

The interesting number is not only the top line. It is how much of that top line is AI silicon.

Broadcom released results on September 2, 2026 at 4:15 p.m. Eastern Time. The same day it furnished Form 8-K accession 0001730168-26-000076. Item 2.02 attaches the press release as Exhibit 99.1 and says that information is furnished, not filed. Item 8.01 restates the dividend.

The print

Net revenue was $29.6 billion, up 86% from $15.95 billion in the year-ago quarter. The table prints the current quarter as $29.59 billion; the release headline rounds that to $29.6 billion.

Semiconductor solutions contributed $20.8 billion, or 70% of revenue, up 127% from $9.2 billion. Infrastructure software contributed $8.8 billion, or 30%, up 29% from $6.8 billion.

GAAP operating income was $16.0 billion, up 171% from $5.9 billion. Non-GAAP operating income was $20.1 billion, up 92% from $10.5 billion. Those are separate measures. GAAP diluted EPS was $2.68, compared with $0.85. Non-GAAP diluted EPS was $3.32, compared with $1.69.

Cash from operations was $14.2 billion. Capital expenditures were $500 million. Free cash flow was $13.7 billion, which the company said was 46% of revenue. Cash and cash equivalents ended the quarter at $24.0 billion, compared with $19.6 billion at the end of the prior fiscal quarter.

The AI line

Hock Tan, president and CEO, put the growth in custom AI accelerators and networking. “Q3 AI semiconductor revenue of $16.7 billion grew 221% year-over-year, and 54% quarter-over-quarter,” he said. For the fourth quarter, he said the company expects AI semiconductor revenue “to accelerate to $21.7 billion, up 236% year-over-year.”

$16.7 billion is more than half of the $29.6 billion consolidated quarter, and most of the $20.8 billion semiconductor solutions segment. That concentration is on the page. Customer names are not.

Q4 guide

Based on current business trends and conditions, Broadcom said fourth-quarter fiscal 2026 revenue — quarter ending November 1, 2026 — is expected to be approximately $34.8 billion. It guided fourth-quarter non-GAAP operating income to approximately 66% of projected revenue. Thuener said that margin is flat from a year ago. The company said it is not readily able to reconcile projected non-GAAP measures to GAAP without unreasonable effort.

No Street consensus was opened for this draft. The $34.8 billion figure stands as Broadcom’s guide alone.

Dividend

The board approved a quarterly cash dividend of $0.65 per share, payable September 30, 2026 to stockholders of record at 5:00 p.m. Eastern Time on September 21, 2026. On June 30, 2026, the company paid a $0.65 dividend totaling $3.1 billion.

Call Q&A, consensus, and the 10-Q still open

A conference call was scheduled for 2:00 p.m. Pacific Time on September 2. This piece does not use call Q&A. The release also does not name the customers behind “custom AI accelerators.” The Q4 AI figure of $21.7 billion is management expectation, not a booked print.

What is already clear without the call: Broadcom’s growth algorithm in this quarter is AI semiconductors inside a still-growing software segment, with a guide that asks for another large step in both consolidated revenue and the AI line.