AVGO · 10-Q · 2026Q2

Broadcom Inc.

Filed 2026-06-09 · Technology · View original filing on EDGAR

Ranked Events

• Inventory Build for AI AcceleratorsImportance 89 · Surprise 82
  Inventory increased to $4,328 million at May 3, 2026 from $2,270 million at November 2, 2025, a rise of $2,058 million, and management states this build was primarily to support higher expected shipments for custom AI…
• Market Demand TrendsImportance 89 · Surprise 82
  Net revenue grew sharply year-over-year driven by semiconductor solutions (quarterly semiconductor solutions revenue was $15,009 million vs $8,408 million a year earlier and two-quarter semiconductor revenue was…
• Segment Operating ResultsImportance 89 · Surprise 82
  Operating income from the semiconductor solutions segment for the two fiscal quarters ended May 3, 2026 was $16,784 million, up $7,272 million from $9,512 million in the prior-year period, driven by strong demand for…
• AI Infrastructure InvestmentImportance 88 · Surprise 82
  Inventory increased to $4,328 million at May 3, 2026 from $2,270 million at November 2, 2025 primarily to support higher expected shipments for custom AI accelerators. The company attributes inventory buildup directly…
• Working Capital and ReceivablesImportance 88 · Surprise 82
  Working capital rose to $23,351 million at May 3, 2026 from $13,059 million at November 2, 2025, driven by higher trade accounts receivable and increased cash and cash equivalents. Trade accounts receivable, net…
• Distribution ChannelsImportance 84 · Surprise 74
  Direct sales to a single semiconductor solutions customer, identified as a distributor, accounted for 42% of Broadcom's net revenue for both the fiscal quarter and two fiscal quarters ended May 3, 2026 (compared with…
• Revenue Concentration RiskImportance 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…
• Revenue Performance and MixImportance 84 · Surprise 74
  Total net revenue for the two fiscal quarters ended May 3, 2026 was $41,498 million, up $11,578 million from $29,920 million for the two fiscal quarters ended May 4, 2025. Semiconductor solutions net revenue increased…
• Liquidity and Cash PositionImportance 75 · Surprise 64
  As of May 3, 2026 Broadcom held $19,628 million in cash and cash equivalents and reported working capital of $23,351 million, up from $13,059 million at November 2, 2025. Trade accounts receivable, net increased to…
• Operating Cash Flow TrendsImportance 70 · Surprise 56
  Net cash provided by operating activities for the two fiscal quarters ended May 3, 2026 was $18,753 million, up $6,085 million from $12,668 million in the prior-year period. The $6,085 million increase was primarily…
• Gross Margin DriversImportance 70 · Surprise 56
  Gross margin increased in absolute terms to $15,415 million for the quarter and $28,572 million for the two fiscal quarters ended May 3, 2026 (up from $10,197 million and $20,342 million, respectively, a year earlier),…
• Income Tax Rate ChangesImportance 69 · Surprise 64
  The provision for income taxes was $820 million for the fiscal quarter and $1,666 million for the two fiscal quarters ended May 3, 2026, compared to $120 million and $107 million for the comparable prior-year periods.…
• Capital Return ProgramImportance 69 · Surprise 50
  Broadcom's Board authorized multiple repurchase programs: an April 2025 authorization to repurchase up to $10 billion through December 31, 2025 that was extended through December 31, 2026 and increased to $11 billion,…
• Operating Expense TrendsImportance 65 · Surprise 48
  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.…
• Provision for Income TaxesImportance 63 · Surprise 64
  The provision for income taxes was $820 million for the fiscal quarter and $1,666 million for the two fiscal quarters ended May 3, 2026, versus $120 million and $107 million for the comparable prior-year periods. The…
• Outstanding IndebtednessImportance 61 · Surprise 32
  Broadcom had $66,720 million of outstanding indebtedness as of May 3, 2026, with $2,252 million of principal amounts payable within 12 months. Interest expense for the two fiscal quarters ended May 3, 2026 was $1,577…
• Software / Subscription Revenue MixImportance 54 · Surprise 40
  Subscriptions and services revenue increased to $5,295 million in the quarter (from $4,695 million) and to $10,476 million for the two fiscal quarters (from $9,468 million), representing greater than 10% year-over-year…
• Product Launch and TransitionImportance 52 · Surprise 42
  Infrastructure software growth was driven primarily by strong demand for VMware Cloud Foundation (VCF), which management cites as a material contributor to segment revenue growth. Semiconductor product performance was…
• Regulatory Change - IRA Excise TaxImportance 37 · Surprise 60
  Other income for the two fiscal quarters ended May 3, 2026 included a $315 million gain from the reversal of excise tax charges related to Broadcom's acquisition of VMware. This gain resulted from final Inflation…
• Interest Expense / Interest RatesImportance 36 · Surprise 14
  Interest expense was $776 million and $769 million for the fiscal quarters ended May 3, 2026 and May 4, 2025, respectively; the quarter-over-quarter increase was attributed to a loss on debt extinguishment. For the two…

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