AVGO · 10-Q · 2026Q2 · Full report

Revenue Concentration Risk

Broadcom Inc. · 2026-06-09 · Importance 84 · Surprise 74

A small number of customers represent a significant share of Broadcom's revenue: direct sales to one semiconductor solutions customer (a distributor) accounted for 42% of net revenue for both the fiscal quarter and two fiscal quarters ended May 3, 2026 (up from 29% in the comparable prior-year periods). Aggregate sales to the top five end customers were approximately 45% of net revenue for the current periods versus 40% in the prior-year periods. Management explicitly warns that loss of, or a material decrease in demand from, any of the top five customers could have a material adverse effect on the business. This concentration increases exposure to order timing and execution by a small set of customers, particularly in semiconductor AI and wireless end markets.

Key facts