AVGO · 10-Q · 2026Q2 · Full report
Operating Expense Trends
Broadcom Inc. · 2026-06-09 · Importance 65 · Surprise 48 · No source text
Research and development expense for the two fiscal quarters ended May 3, 2026 increased $1,014 million, or 21%, to $5,960 million from $4,946 million a year earlier, primarily due to higher stock-based compensation. Selling, general and administrative expense for the two fiscal quarters ended May 3, 2026 increased $42 million, or 2%, to $2,074 million, with higher stock-based compensation substantially offset by lower acquisition-related costs. Total operating expenses rose to $9,221 million from $8,253 million for the two fiscal quarters ended May 3, 2026 compared to the prior year, and unallocated operating expenses increased (12% in the two-quarter period) driven by higher stock-based compensation. As of May 3, 2026, total unrecognized compensation cost related to unvested stock-based awards expected to vest was $20,106 million, with a remaining weighted-average service period of 3.0 years.
Key facts
- Total unrecognized compensation cost related to unvested stock-based awards outstanding and expected to vest as of May 3, 2026 was $20,106 million. source
- Total stock-based compensation expense was $4,268 million for the two fiscal quarters ended May 3, 2026 and $3,051 million for the two fiscal quarters ended May 4, 2025. source
- Total stock-based compensation expense was $2,092 million for the fiscal quarter ended May 3, 2026 and $1,771 million for the fiscal quarter ended May 4, 2025. source
- Research and development expense increased $1,014 million, or 21%, for the two fiscal quarters ended May 3, 2026 compared to the prior year two fiscal quarters. source
- Unallocated expenses were $(8,403) million for the two fiscal quarters ended May 3, 2026 compared to $(7,532) million for May 4, 2025, an increase of $871 million. source
- Research and development expense increased $302 million, or 11%, for the fiscal quarter ended May 3, 2026 compared to the prior year fiscal quarter. source
- Unallocated expenses were $(4,140) million for the fiscal quarter ended May 3, 2026 compared to $(3,964) million for May 4, 2025, an increase of $176 million. source
- Unallocated expenses increased 4% for the fiscal quarter ended May 3, 2026 and 12% for the two fiscal quarters ended May 3, 2026 compared to the prior year periods due to higher stock-based compensation expense. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -5.5% | Total stock-based compensation expense was $4,268 million for the two fiscal quarters ended May 3, 2026 and $3,051 million for the two… |
| operating_income | negative | realized | -4.6% | Research and development expense increased $1,014 million, or 21%, for the two fiscal quarters ended May 3, 2026 compared to the prior… |
| operating_income | negative | realized | -3.9% | Unallocated expenses were $(8,403) million for the two fiscal quarters ended May 3, 2026 compared to $(7,532) million for May 4, 2025, an… |
| operating_income | negative | realized | -1.4% | Total stock-based compensation expense was $2,092 million for the fiscal quarter ended May 3, 2026 and $1,771 million for the fiscal… |
| operating_income | negative | realized | -1.4% | Research and development expense increased $302 million, or 11%, for the fiscal quarter ended May 3, 2026 compared to the prior year… |
| operating_income | negative | realized | -0.8% | Unallocated expenses were $(4,140) million for the fiscal quarter ended May 3, 2026 compared to $(3,964) million for May 4, 2025, an… |
| operating_income | negative | committed | — | Total unrecognized compensation cost related to unvested stock-based awards outstanding and expected to vest as of May 3, 2026 was $20,106… |