Broadcom Posts Record Q3 Results on AI Chip Demand

Broadcom Inc. reported record third-quarter fiscal 2026 results on Wednesday, September 2, driven by a massive surge in demand for its artificial intelligence semiconductors and custom AI accelerators. The company's revenue, operating income, and free cash flow all exceeded prior records, though its stock declined in after-hours trading following the release. For the quarter ended August 3, Broadcom posted revenue of $29.6 billion, an 86% increase from the same period last year. Operating income rose 92% to a record $20.1 billion. Non-GAAP diluted earnings per share grew 96% year-over-year to $3.32. The company generated record free cash flow of $13.7 billion, equal to 46% of revenue. "We delivered an exceptional quarter with revenue, operating income and free cash flow all exceeding prior records," said President and CEO Hock Tan. The results were powered by the company's semiconductor solutions segment, which produced record revenue of $20.8 billion, up 127% year-over-year and accounting for 70% of consolidated revenue. AI semiconductor revenue was the primary driver, growing 221% year-over-year and 54% sequentially to $16.7 billion.