Broadcom (AVGO) Delivers Record Q2 Results with +48% Revenue Growth Led by AI
Key Takeaways
- Broadcom reported record second-quarter fiscal 2026 revenue of $22.2 billion, up 48% year-over-year.
- Non-GAAP diluted EPS reached $2.44, exceeding consensus estimates of $2.32.
- AI semiconductor revenue hit $10.8 billion, growing 143% from the prior year.
- Adjusted EBITDA rose 52% year-over-year to $15.2 billion, or 69% of revenue.
- Company issued strong third-quarter guidance of approximately $29.4 billion in revenue.
- Free cash flow reached $10.3 billion, or 46% of revenue, supporting the $0.65 quarterly dividend.
Earnings Context and Why It Matters
Broadcom’s fiscal second quarter, ended May 3, 2026, highlights the company’s accelerating position in artificial intelligence semiconductors amid robust demand for custom accelerators and networking solutions. Following a 29% revenue increase in the first quarter, this report underscores sustained momentum in the semiconductor solutions segment, which grew 79% year-over-year. Strong results in this high-margin area influence investor views on Broadcom’s ability to capitalize on AI infrastructure spending while maintaining operating leverage across its infrastructure software business. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
Broadcom reported net revenue of $22,187 million for the second quarter of fiscal 2026, a 48% increase from $15,004 million in the year-ago period. GAAP net income totaled $9,310 million, while non-GAAP net income reached $12,074 million. GAAP diluted earnings per share stood at $1.91, and non-GAAP diluted EPS was $2.44, surpassing analyst consensus estimates of $2.32. Semiconductor solutions revenue climbed to $15,009 million, up 79%, with AI-related semiconductor revenue contributing $10.8 billion, a 143% year-over-year gain. Infrastructure software revenue increased 9% to $7,178 million. Adjusted EBITDA rose 52% to $15,244 million, representing 69% of revenue. Free cash flow reached $10,262 million after capital expenditures of $231 million.
Market Reaction and Investor Sentiment
Shares of AVGO traded higher following the June 3, 2026, release, reflecting investor focus on the substantial AI revenue growth and the company’s raised third-quarter outlook. The earnings beat on non-GAAP EPS and record cash generation reinforced positive sentiment around Broadcom’s execution in the expanding AI market, even as revenue came in modestly below some expectations.
Forward Outlook and Key Factors to Monitor
Broadcom provided third-quarter fiscal 2026 guidance of approximately $29.4 billion in revenue, representing an 84% year-over-year increase. Non-GAAP operating income is expected at about 67% of revenue, with Adjusted EBITDA near 68% of revenue. Management highlighted expectations for AI semiconductor revenue to exceed $16.0 billion in the quarter, more than doubling from the prior year.
Investors will track the pace of AI demand, particularly for custom accelerators and networking products, alongside performance in the infrastructure software segment. Margin stability and free cash flow conversion remain central themes given the company’s capital return program, including the ongoing dividend and share repurchase authorization.
Additional areas of focus include supply chain dynamics, customer concentration in AI, and any updates on broader semiconductor market conditions as Broadcom approaches its fiscal third quarter ending August 2, 2026. From what I see, monitoring these elements will be important for understanding how the momentum holds.
Using Tickeron’s AI Screener in My Research
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AVGO in downward trend: price dove below 50-day moving average on June 05, 2026
AVGO moved below its 50-day moving average on June 05, 2026 date and that indicates a change from an upward trend to a downward trend. In of 42 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for AVGO moved out of overbought territory on June 04, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 62 similar instances where the indicator moved out of overbought territory. In of the 62 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on June 26, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on AVGO as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AVGO turned negative on June 05, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 55 similar instances when the indicator turned negative. In of the 55 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 10-day moving average for AVGO crossed bearishly below the 50-day moving average on June 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AVGO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AVGO broke above its upper Bollinger Band on May 29, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AVGO advanced for three days, in of 351 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 308 cases where AVGO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 65, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. AVGO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (21.277) is normal, around the industry mean (21.579). P/E Ratio (65.246) is within average values for comparable stocks, (328.644). Projected Growth (PEG Ratio) (0.713) is also within normal values, averaging (2.068). Dividend Yield (0.007) settles around the average of (0.013) among similar stocks. P/S Ratio (25.381) is also within normal values, averaging (60.360).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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a manufacturer of digital and analog semiconductor products
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