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AVGO US S&P 500NASDAQ-100Russell 1000 Earnings call

Broadcom (AVGO) · Q2 2026 results and valuation

Share price: $345.22 · 2026-11-11

Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026

Net income up 40.6% on the previous quarter. Tone in line with last period.

Only a basic analysis is available for this company at the moment.

1 · Numbers

+40.6%

Net income vs Q1 2026

Outlook given

Net income 13.09B vs 9.31B

Revenue +33.4%

Against the same quarter last year (Q2 2025) it is +216.1%, so it is not just seasonal.

2 · How management spoke

Unchanged

Language tone vs last period

Language: typical — about as upbeat as in Q1 2026.

3 · What stood out

Guidance

For Meta, Broadcom expects production shipments of their custom MTIA accelerator optimized for inference and recommendation at scale.

Valuation

Is Broadcom undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-11-02), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 20.0% growth a year (3-year revenue growth), the model's fair value is $269.79 a share — the stock trades 28% above it. Today's price assumes 23.3% growth a year.

Current price

$345.22

close of 2026-11-11

Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.

+23.3% for 10 yrs

Fair value / share

$269.79

Buy below

$202.34

Price vs fair value

Overvalued 28%

Price vs buy-below price

Overvalued 71%

Official channels

The company's own website and social media accounts.

Read between the lines

  1. Figure

    AI semiconductor revenue grew 221% year-on-year and 54% sequentially, driving record revenue, operating income, and free cash flow.

    Source quote
    “And driving this was our Q3 AI semiconductor revenue, which grew 221% year-on-year and up 54% sequentially. We delivered an exceptional quarter with revenue, operating income and free cash flow all exceeding prior records. This brought our consolidated revenue to $29.6 billion, which was up 86% year-on-year.”
  2. Guidance

    Q4 revenue guidance: XPUs and AI networking revenue expected to triple year-on-year.

    Source quote
    “In Q4, we expect both XPUs and AI networking revenue to triple year-on-year.”
  3. Fading

    Semiconductor revenue was 68% of total, AI was 49%, and the Semiconductor Solutions segment reached a record $15 billion on 79% year-on-year growth.

    Source quote
    “Semiconductor revenue represented 68% of total revenue in the quarter, and AI semiconductor revenue represented 49% of total revenue. Revenue for our Semiconductor Solutions segment was a record $15 billion, with growth accelerating to 79% year on year driven by AI. Gross margin for our Semiconductor Solutions segment was approximately 70%, Operating expenses of $1.2 billion reflected increased investment in R&D for leading...”

Tone

How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.

Overall language Typical (was typical)

Typical — about as upbeat as in Q1 2026.

Sentences that drove the tone
“It's not the first time we have told you guys that because stop focusing on gross margin is what we're saying, look at where it matters, operating margin at the...”
“And they are all growing with XPUs to achieve superior performance, cost and power.”
“As we've discussed previously, this reflects the increasing mix of XPUs with their increasing memory content, which is diluting our consolidated gross margin.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-08-02)

Metric Q2 2026period end 2026-08-02 Q1 2026period end 2026-05-03 Change Q2 2025 YoY
Revenue 29.59B 22.19B +33.4% 15.95B +85.5%
Gross profit 20.46B 15.41B +32.7% 10.70B +91.1%
Operating income 15.96B 10.79B +47.9% 5.89B +171.0%
Net income 13.09B 9.31B +40.6% 4.14B +216.1%
EPS 2.68 1.91 +40.3% 0.85 +215.3%
P/E today 46.2 49.7 70.1 −20.4 73.6 −23.9

Topics

Most discussed now

  • New To put that simply, that's how Broadcom looks at this simple thing, it makes economic sense for Broadcom to invest...
  • New All it's a multidimensional problem coming from various sources.
  • New It dictates specific timing of when this capacity gets deployed and be available.
  • Just to reiterate the major technology challenges of developing these complex accelerators, Broadcom is now shipping the TPU version 8i...
  • Even with the decline in gross margin due to revenue mix, operating margin increased 240 basis points year-over-year to 67.9%...

Faded since Q1 2026

  • Fading Even as Broadcom's revenue scales up massively, driven by AI, its operating and EBITDA margins remain strong and stable.

Latest announcements

Official filings, newest first.

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