AVGO · 10-Q · 2026Q3 · Full report

Customer Dynamics and Concentration Risk

Broadcom Inc. · 2026-09-10 · Importance 89 · Surprise 82 · In source text

Direct sales to one semiconductor solutions distributor represented 50% of quarterly net revenue and 46% of year-to-date net revenue, up from 32% and 30%, respectively, in the prior-year periods. Broadcom’s top five end customers across all channels represented approximately 55% of quarterly net revenue and 50% year-to-date, compared with approximately 40% in each prior-year period. Large orders, delayed orders, AI and wireless deployment timing, and product launches can cause significant quarterly revenue fluctuations. The company stated that losing a top-five end customer or experiencing a significant demand reduction could materially affect business, results of operations, and financial condition.

Key facts

• Direct sales to one semiconductor solutions customer (a distributor) accounted for 50% of our net revenue for the fiscal quarter ended August 2, 2026. source
• Direct sales to that distributor accounted for 46% of our net revenue for the three fiscal quarters ended August 2, 2026. source
• Aggregate sales to our top five end customers accounted for approximately 55% of our net revenue for the fiscal quarter ended August 2, 2026. source
• Aggregate sales to our top five end customers accounted for approximately 50% of our net revenue for the three fiscal quarters ended August 2, 2026. source
• The distributor accounted for 32% and 30% of our net revenue for the fiscal quarter and three fiscal quarters ended August 3, 2025, respectively. source
• Aggregate sales to our top five end customers accounted for approximately 40% of our net revenue for the fiscal quarter and three fiscal quarters ended August 3, 2025. source

Impact estimates