Broadcom Inc. Announces First Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend (Form 8-K)

Broadcom Inc. Announces First Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend

•Revenue of $19,311 million for the first quarter, up 29 percent from the prior year period

•GAAP net income of $7,349 million for the first quarter; Non-GAAP net income of $10,185 million for the first quarter

•Adjusted EBITDA of $13,128 million for the first quarter, or 68 percent of revenue

•GAAP diluted EPS of $1.50 for the first quarter; Non-GAAP diluted EPS of $2.05 for the first quarter

•Cash from operations of $8,260 million for the first quarter, less capital expenditures of $250 million, resulted in $8,010 million of free cash flow, or 41 percent of revenue

•Quarterly common stock dividend of $0.65 per share

•Second quarter fiscal year 2026 revenue guidance of approximately $22.0 billion, an increase of 47 percent from the prior year period

•Second quarter fiscal year 2026 Adjusted EBITDA guidance of approximately 68 percent of projected revenue (1)

•New $10 billion share repurchase program

PALO ALTO, Calif. - March 4, 2026 - Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its first quarter of fiscal year 2026, ended February 1, 2026, provided guidance for its second quarter of fiscal year 2026 and announced its quarterly dividend.

"Broadcom achieved record first quarter revenue on continued strength in AI semiconductor solutions. Q1 AI revenue of $8.4 billion grew 106% year-over-year, above our forecast, driven by robust demand for custom AI accelerators and AI networking," said Hock Tan, President and CEO of Broadcom Inc. "Our AI revenue growth is accelerating, and we expect AI semiconductor revenue to be $10.7 billion in Q2."

"Consolidated revenue grew 29% year-over-year to a record $19.3 billion. Adjusted EBITDA increased 30% year-over-year to a record $13.1 billion, representing 68% of revenue. In Q2 we expect revenue growth to increase 47% year-over-year to $22.0 billion, with adjusted EBITDA of 68%," said Kirsten Spears, CFO of Broadcom Inc. "Consistent with our commitment to return excess cash to shareholders, we returned $10.9 billion in the first quarter through $3.1 billion of cash dividends and $7.8 billion of stock repurchases."

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(1) The Company is not readily able to provide a reconciliation of the projected non-GAAP financial information presented to the relevant projected GAAP measure without unreasonable effort.

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First Quarter Fiscal Year 2026 Financial Highlights

						GAAP																					Non-GAAP
(Dollars in millions, except per share data)						Q1 26						Q1 25						Change									Q1 26						Q1 25						Change
Net revenue						$	19,311					$	14,916					+29			%						$	19,311					$	14,916					+29			%
Net income						$	7,349					$	5,503					+34			%						$	10,185					$	7,823					+30			%
Earnings per common share - diluted						$	1.50					$	1.14					+32			%						$	2.05					$	1.60					+28			%

(Dollars in millions)						Q1 26						Q1 25						Change
Cash flow from operations						$	8,260					$	6,113					+35			%
Adjusted EBITDA						$	13,128					$	10,083					+30			%
Free cash flow						$	8,010					$	6,013					+33			%

Net revenue by segment
(Dollars in millions)						Q1 26															Q1 25															Change
Semiconductor solutions						$	12,515					65			%						$	8,212					55			%						+52			%
Infrastructure software						6,796						35									6,704						45									+1			%
Total net revenue						$	19,311					100			%						$	14,916					100			%

The Company's cash and cash equivalents at the end of the fiscal quarter were $14,174 million, compared to $16,178 million at the end of the prior fiscal quarter.

During the first fiscal quarter, the Company generated $8,260 million in cash from operations and spent $250 million on capital expenditures, resulting in $8,010 million of free cash flow.

On December 31, 2025, the Company paid a cash dividend of $0.65 per share, totaling $3,086 million.

The differences between the Company's GAAP and non-GAAP results are described generally under "Non-GAAP Financial Measures" below and presented in detail in the financial reconciliation tables attached to this release.

Second Quarter Fiscal Year 2026 Business Outlook

Based on current business trends and conditions, the outlook for the second quarter of fiscal year 2026, ending May 3, 2026, is expected to be as follows:

•Second quarter revenue guidance of approximately $22.0 billion; and

•Second quarter Adjusted EBITDA guidance of approximately 68 percent of projected revenue.

The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. The Company is not readily able to provide a reconciliation of projected Adjusted EBITDA to projected net income without unreasonable effort. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

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Quarterly Dividends

The Board of Directors of Broadcom has approved a quarterly cash dividend of $0.65 per share. The dividend is payable on March 31, 2026 to stockholders of record at the close of business (5:00 p.m. Eastern Time) on March 23, 2026.

New Share Repurchase Program

The Board of Directors of Broadcom has authorized a new share repurchase program to repurchase up to $10 billion of its common stock through December 31, 2026. Repurchases under the new share repurchase authorization may be made through a variety of methods, including open market or privately negotiated purchases. The timing and amount of shares repurchased will depend on the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities and other factors. Broadcom is not obligated to repurchase any specific amount of shares of common stock, and the share repurchase program may be suspended or terminated at any time.

Financial Results Conference Call

Broadcom Inc. will host a conference call to review its financial results for the first quarter of fiscal year 2026 and to discuss the business outlook today at 2:00 p.m. Pacific Time.

To Listen via Internet: The conference call can be accessed live online in the Investors section of the Broadcom website at https://investors.broadcom.com/.

Replay: An audio replay of the conference call can be accessed for one year through the Investors section of Broadcom's website at https://investors.broadcom.com/.

Non-GAAP Financial Measures

The non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release to the extent available without unreasonable effort. Broadcom believes non-GAAP financial information provides additional insight into the Company's on-going performance. Therefore, Broadcom provides this information to investors for a more consistent basis of comparison and to help them evaluate the results of the Company's on-going operations and enable more meaningful period to period comparisons.

In addition to GAAP reporting, Broadcom provides investors with net income, operating income, gross margin, operating expenses, cash flow and other data on a non-GAAP basis. This non-GAAP information excludes amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring and other charges, acquisition-related costs, including integration costs, non-GAAP tax reconciling adjustments, and other adjustments. Management does not believe that these items are reflective of the Company's underlying performance. Internally, these non-GAAP measures are significant measures used by management for purposes of evaluating the core operating performance of the Company, establishing internal budgets, calculating return on investment for development programs and growth initiatives, comparing performance with internal forecasts and targeted business

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models, strategic planning, evaluating and valuing potential acquisition candidates and how their operations compare to the Company's operations, and benchmarking performance externally against the Company's competitors. The exclusion of these and other similar items from Broadcom's non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent or unusual.

Free cash flow measures have limitations as they omit certain components of the overall cash flow statement and do not represent the residual cash flow available for discretionary expenditures. Investors should not consider presentation of free cash flow measures as implying that stockholders have any right to such cash. Broadcom's free cash flow may not be calculated in a manner comparable to similarly named measures used by other companies.

About Broadcom

Broadcom Inc. (NASDAQ: AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations' complex, mission-critical needs. Broadcom combines long-term R&D investment with superb execution to deliver the best technology, at scale. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, visit www.broadcom.com.