TLDR
- AVGO drops after hours despite Broadcom’s 48% Q2 revenue growth and AI gains
- Broadcom AI chip sales hit $10.8B, but AVGO slides sharply after market close
- Broadcom posts record Q2 revenue, yet AVGO falls 5.57% in after-hours trade
- AVGO weakens after Broadcom guides Q3 revenue to about $29.4 billion in outlook
- Broadcom’s free cash flow rises 60%, but AVGO faces pressure after the closing bell
Broadcom (AVGO) reported a stronger second quarter, but AVGO stock weakened after the closing bell. The stock closed at $479.23, down 0.49%, before falling to $452.52 after hours. That post-close move marked a 5.57% decline and reflected pressure after the earnings release.
Broadcom Inc., AVGO
The chip and software company posted revenue of $22.19 billion for the quarter ended May 3, 2026. That figure rose 48% from $15 billion in the same period last year. Broadcom also reported GAAP net income of $9.31 billion.
Non-GAAP net income reached $12.07 billion, up 55% from the prior year. GAAP diluted earnings per share rose 85% to $1.91. Moreover, non-GAAP diluted earnings per share increased 54% to $2.44.
AI Semiconductor Revenue Leads Growth
Broadcom’s semiconductor solutions segment generated $15.01 billion in second-quarter revenue. That total represented 68% of company revenue and rose 79% from last year. The growth came as demand expanded for custom AI accelerators and networking products.
AI semiconductor revenue reached $10.8 billion during the quarter. That figure jumped 143% year over year and came above the company’s earlier forecast. Management expects AI semiconductor revenue to reach $16 billion in the third quarter.
Infrastructure software added $7.18 billion in second-quarter revenue. The segment rose 9% from $6.6 billion in the prior-year period. However, semiconductor solutions carried most of Broadcom’s year-over-year expansion.
Cash Flow and Q3 Guidance Add Context
Broadcom generated $10.49 billion in cash from operations during the second quarter. The company spent $231 million on capital expenditures. Free cash flow reached $10.26 billion, equal to 46% of revenue.
Adjusted EBITDA rose 52% year over year to $15.24 billion. That figure represented 69% of total revenue and highlighted strong operating leverage. Broadcom ended the quarter with $19.63 billion in cash and cash equivalents.
For the third quarter, Broadcom expects revenue of about $29.4 billion. That forecast implies 84% growth from the same period last year. The company also expects adjusted EBITDA near 68% of projected revenue and approved a $0.65 quarterly dividend.
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