Broadcom Inc.

Blowout Q3 results & operating leverage (Good) - Consolidated Q3 FY26 revenue: $29.6B, +86% YoY (record). - Operating income: $20.1B, +92% YoY; operating margin ~67% (67.9%), record-level operating leverage. - Non-GAAP EPS: $3.32, +96% YoY. - Free cash flow: $13.7B, 46% of revenue (record). - Margin headwind from mix: Q3 gross margin 75%, down 210 bps QoQ due to faster-growing AI semiconductor mix (more memory content in XPUs).

AI semiconductor engine: XPU + networking scaling rapidly (Good) - Q3 AI semiconductor revenue: $16.7B; +221% YoY and +54% QoQ. - 6 “XPU customers” accelerating: XPU shipments +3.5x YoY, representing ~73% of AI revenue in the quarter. - AI networking revenue: +2.5x YoY. - Product/program milestones: - Ironwood TPU v7 in high volume to Anthropic and Google. - Began production shipments of TPU v8i for Google (inference-focused; designed for more memory/bandwidth; said comparable to or surpassing Vera Rubin GPU). - Jalapeno shipped for OpenAI; said to outperform Grace Blackwell GPU for inference (comparable to Vera Rubin on OpenAI workloads). - For Meta, expected production shipments of MTIA (inference + recommendation).

Q4 and multi-year AI revenue outlook (Good + Surprising confidence) - Q4 FY26 guidance: Consolidated revenue $34.8B, +93% YoY. - Semiconductor revenue: ~$26.1B (+136% YoY). - Q4 AI semiconductor revenue: $21.7B, +236% YoY. - Infrastructure software revenue: ~$8.7B (up ~25% YoY). - Operating margin: ~66% (flat YoY despite mix headwind). - FY26 AI revenue forecast: $58B, +186% YoY (and management said above prior guidance; they emphasized “on target” growth trajectory). - FY27–FY28 AI semiconductor revenue roadmap (very bullish): - FY27: ~$115B (~2x)—stated supply secured and demand could exceed. - FY28: ~$230B (~2x again), also framed as supply secured. - Surprising angle: management repeatedly emphasized outlook is *conservative* and could be *uplifted* if supply improves—while still stressing deployment readiness matters (not just shipping chips).