AVGO · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

Broadcom Inc. · 2026-09-10 · Importance 69 · Surprise 64

Gross margin increased to $20,456 million in the quarter ended August 2, 2026 from $10,703 million in the prior-year quarter. Gross margin increased to $49,028 million for the first three fiscal quarters from $31,045 million in the prior-year period. Gross margin percentage rose to 69% from 67% for the quarter and to 69% from 68% year to date. The improvement primarily reflected strong demand for AI-related semiconductor solutions and revenue growth, partly offset by the higher mix of semiconductor solutions, which carries lower margins than infrastructure software.

Key facts

• Gross margin as a percentage of net revenue was 67% for the fiscal quarter ended August 3, 2025 and 68% for the three fiscal quarters ended August 3, 2025. source
• Gross margin was $20,456 million for the fiscal quarter ended August 2, 2026 and $49,028 million for the three fiscal quarters ended August 2, 2026. source
• Gross margin as a percentage of net revenue was 69% for each of the fiscal quarter and three fiscal quarters ended August 2, 2026. source