AVGO · 10-Q · 2026Q3 · Full report
Operating Expense Trends
Broadcom Inc. · 2026-09-10 · Importance 43 · Surprise 32 · From source text
Research and development expense decreased $155 million, or 5%, to $2,895 million in the quarter, primarily because lower compensation and stock-based compensation from reduced headcount exceeded higher engineering project costs. Year-to-date R&D expense increased $859 million, or 11%, to $8,855 million, primarily because of higher stock-based compensation from the Two-Year Equity Awards and higher engineering project costs. Selling, general and administrative expense decreased $76 million, or 7%, to $1,072 million in the quarter and decreased $34 million, or 1%, to $3,070 million year to date. SG&A declines primarily reflected lower compensation from reduced headcount.
Key facts
- Unrecognized compensation cost related to unvested stock-based awards and expected to vest as of August 2, 2026 totaled $18,221 million with a remaining weighted-average service period of 2.9 years. source
- Total stock-based compensation expense was $6,287 million for the three fiscal quarters ended August 2, 2026 and $5,373 million for the three fiscal quarters ended August 3, 2025. source
- Total stock-based compensation expense was $2,019 million for the fiscal quarter ended August 2, 2026 and $2,322 million for the fiscal quarter ended August 3, 2025. source
- Research and development expense increased $859 million, or 11%, for the three fiscal quarters ended August 2, 2026 compared to the prior year fiscal period. source
- Research and development expense decreased $155 million, or 5%, for the fiscal quarter ended August 2, 2026 compared to the prior year fiscal period. source
- Selling, general and administrative expense decreased $76 million, or 7%, for the fiscal quarter ended August 2, 2026 compared to the prior year fiscal period. source
- Selling, general and administrative expense decreased $34 million, or 1%, for the three fiscal quarters ended August 2, 2026 compared to the prior year fiscal period. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | committed | -52.3% | Unrecognized compensation cost related to unvested stock-based awards and expected to vest as of August 2, 2026 totaled $18,221 million… |
| net_income | negative | committed | -52.3% | Unrecognized compensation cost related to unvested stock-based awards and expected to vest as of August 2, 2026 totaled $18,221 million… |
| operating_income | negative | realized | -3.1% | Total stock-based compensation expense was $6,287 million for the three fiscal quarters ended August 2, 2026 and $5,373 million for the… |
| net_income | negative | realized | -3.1% | Total stock-based compensation expense was $6,287 million for the three fiscal quarters ended August 2, 2026 and $5,373 million for the… |