Broadcom reported its fiscal second-quarter 2026 results, which concluded on May 3rd, 2026. The company reported quarterly revenue of $22.19 billion and adjusted earnings per share of $2.44.
Broadcom's revenue increased 48% year-over-year and adjusted earnings per share rose 54% year-over-year. The company reported adjusted EBITDA of $15.24 billion, a 52% increase from the previous year. The company's stock price declined in after-hours trading following the release of the earnings report.
The company booked more than $30 billion in AI semiconductor orders during the quarter, with $10.8 billion in AI semiconductor revenue recorded. Broadcom entered into an agreement with Alphabet, the parent company of Google, in April to develop and supply multiple generations of tensor processing units and AI networking equipment. In the same month, Broadcom also formed an agreement with Anthropic to provide 5 gigawatts of next-generation tensor processing unit-based computing capacity, scheduled to begin in 2027.
Hock Tan, Broadcom's chief executive officer, stated expectations for the company to generate $56 billion in AI semiconductor revenue in fiscal year 2026. Tan also reiterated a target of at least $100 billion in AI semiconductor revenue for fiscal year 2027 and projected continued AI semiconductor revenue growth in fiscal year 2028. He noted Broadcom's six core AI customers, which include Alphabet, Anthropic, OpenAI, and Meta Platforms.
Broadcom has a contractual commitment with OpenAI to deploy 1.3 gigawatts of compute capacity in 2027, with a broader commitment for 10 gigawatts by 2029. The company expects to deploy 3 gigawatts of compute capacity for Meta through the end of 2028. Additionally, Broadcom received $6 billion in purchase orders from two unnamed customers, with shipments anticipated to begin in late 2026 and accelerate in 2027, according to Tan.
Tan announced the creation of an artificial intelligence special purpose vehicle with Apollo and Blackstone. Apollo and Blackstone will provide debt financing to this vehicle to facilitate Broadcom chip sales. Tan stated during an earnings call that the special purpose vehicle is designed to accelerate the deployment of Broadcom's AI solutions. He also acknowledged that competitors could secure design wins within Google's custom chip and AI programs.
No independent assessment was available for this report.