On September 2, 2026, Broadcom reported third quarter fiscal 2026 results for the quarter ended August 2, 2026. Consolidated revenue was $29.6 billion, up 86 percent year over year. GAAP net income was $13.1 billion and GAAP diluted earnings per share were $2.68; on a non-GAAP basis net income was $16.4 billion and diluted EPS was $3.32. Free cash flow was $13.7 billion, or 46 percent of revenue. The company declared a quarterly dividend of $0.65 per share.
The AI line is what separates this quarter from an ordinary semiconductor beat. AI semiconductor revenue was $16.7 billion, up 221 percent year over year and up 54 percent quarter over quarter. Hock Tan attributed it to custom accelerators and networking: “Demand for our custom AI accelerators and networking continues to be very strong.” For the fourth quarter, Broadcom guided total revenue to approximately $34.8 billion, up 93 percent year over year, with AI semiconductor revenue of $21.7 billion, up 236 percent.
Broadcom’s business is the counterweight to the merchant-GPU story. Its AI revenue comes from custom accelerators designed with and for a handful of very large customers, plus the Ethernet switching and routing silicon that ties those clusters together. A 54 percent sequential jump means those customers are not just planning capacity, they are taking delivery.
For a technology leader, the read-across is that the AI buildout is no longer a single-vendor phenomenon. Two suppliers - one merchant, one custom - are each guiding to sequential growth off very large bases in the same quarter, which is evidence of genuine capacity expansion rather than share shifting between them.