SECURITIES AND EXCHANGE COMMISSION

Transcript

1. #1prepared remarks

   EX-99.1 2 avgo-08022026x8kxex99.htm EX-99.1

2. #2prepared remarks

   Broadcom Inc. Announces Third Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend

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   • Revenue of $29.6 billion for the third quarter, up 86 percent from the prior year period • GAAP operating income of $16.0 billion for the third quarter; Non-GAAP operating income of $20.1 billion for the third quarter • GAAP diluted EPS of $2.68 for the third quarter; Non-GAAP diluted EPS of $3.32 for the third quarter • Cash from operations of $14.2 billion for the third quarter, less capital expenditures of $0.5 billion, resulted in $13.7 billion of free cash flow, or 46 percent of revenue • Quarterly common stock dividend of $0.65 per share • Fourth quarter fiscal year 2026 revenue guidance of approximately $34.8 billion, an increase of 93 percent from the prior year period • Fourth quarter fiscal year 2026 Non-GAAP operating income guidance of approximately 66 percent of projected revenue (1)

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   PALO ALTO, Calif. – September 2, 2026 – Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its third quarter of fiscal year 2026, ended August 2, 2026, provided guidance for its fourth quarter of fiscal year 2026 and announced its quarterly dividend.

5. #5Hock Tan · President and CEO of Broadcom Inc

   Demand for our custom AI accelerators and networking continues to be very strong. Q3 AI semiconductor revenue of $16.7 billion grew 221% year-over-year, and 54% quarter-over-quarter,

6. #6Amie Thuener · CFO of Broadcom Inc

   Broadcom achieved record revenue, operating profit and free cash flow in Q3. We delivered non-GAAP operating income growth of 92% year-over-year, as consolidated revenue grew 86% year-over-year to $29.6 billion,

7. #7prepared remarks

   ________________________________ (1) The Company is not readily able to provide a reconciliation of projected non-GAAP financial measures presented to the relevant projected GAAP measures without unreasonable effort.

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   Third Quarter Fiscal Year 2026 Financial Highlights | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | GAAP | | Non-GAAP | (Dollars in millions, except per share data) | | Q3 26 | | Q3 25 | | Change | | Q3 26 | | Q3 25 | | Change | Net revenue | | $ | 29,591 | | | $ | 15,952 | | | +86 | % | | $ | 29,591 | | | $ | 15,952 | | | +86 | % | Operating income | | $ | 15,955 | | | $ | 5,887 | | | +171 | % | | $ | 20,095 | | | $ | 10,455 | | | +92 | % | Net income | | $ | 13,088 | | | $ | 4,140 | | | +216 | % | | $ | 16,372 | | | $ | 8,404 | | | +95 | % | Earnings per common share - diluted | | $ | 2.68 | | | $ | 0.85 | | | +215 | % | | $ | 3.32 | | | $ | 1.69 | | | +96 | % |

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   | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in millions) | | Q3 26 | | Q3 25 | | Change | | Cash flow from operations | | $ | 14,197 | | | $ | 7,166 | | | +98 | % | | | | | | | | | | | Free cash flow | | $ | 13,665 | | | $ | 7,024 | | | +95 | % | |

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    | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net revenue by segment | | | | | | | | | | | | | | | | | | | | (Dollars in millions) | | Q3 26 | | | | Q3 25 | | Change | | Semiconductor solutions | | $ | 20,839 | | | 70 | % | | | | | | | $ | 9,166 | | | 57 | % | | +127 | % | | Infrastructure software | | 8,752 | | | 30 | | | | | | | | 6,786 | | | 43 | | | +29 | % | | Total net revenue | | $ | 29,591 | | | 100 | % | | | | | | | $ | 15,952 | | | 100 | % | | | | | | | | | | | | | | | | | | | | | | | | |

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    The Company’s cash and cash equivalents at the end of the fiscal quarter were $24.0 billion, compared to $19.6 billion at the end of the prior fiscal quarter.

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    During the third fiscal quarter, the Company generated $14.2 billion in cash from operations and spent $0.5 billion on capital expenditures, resulting in $13.7 billion of free cash flow.

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    On June 30, 2026, the Company paid a cash dividend of $0.65 per share, totaling $3.1 billion.

14. #14below and presented in

    Non-GAAP Financial Measures

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    Fourth Quarter Fiscal Year 2026 Business Outlook

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    Based on current business trends and conditions, the outlook for the fourth quarter of fiscal year 2026, ending November 1, 2026, is expected to be as follows:

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    • Fourth quarter revenue guidance of approximately $34.8 billion; • Fourth quarter non-GAAP operating income guidance of approximately 66 percent of projected revenue.

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    The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. The Company is not readily able to provide a reconciliation of projected non-GAAP financial measures to the relevant projected GAAP measures without unreasonable effort. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

19. #19prepared remarks

    The Board of Directors of Broadcom has approved a quarterly cash dividend of $0.65 per share. The dividend is payable on September 30, 2026 to stockholders of record at the close of business (5:00 p.m. Eastern Time) on September 21, 2026.

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    Broadcom Inc. will host a conference call to review its financial results for the third quarter of fiscal year 2026 and to discuss the business outlook today at 2:00 p.m. Pacific Time.

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    To Listen via Internet: The conference call can be accessed live online in the Investors section of the Broadcom website at https://investors.broadcom.com/.

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    Replay: An audio replay of the conference call can be accessed for one year through the Investors section of Broadcom’s website at https://investors.broadcom.com/.

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    The non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. When possible, a reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release. The Company is not readily able to provide a reconciliation of projected non-GAAP measures to the comparable GAAP measures without unreasonable effort. Broadcom believes non-GAAP financial information provides additional insight into the Company’s on-going performance. Therefore, Broadcom provides this information to investors for a more consistent basis of comparison and to help them evaluate the results of the Company’s on-going operations and enable more meaningful period to period comparisons.

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    In addition to GAAP reporting, Broadcom provides investors with net income, operating income, gross margin, operating expenses, cash flow and other data on a non-GAAP basis. This non-GAAP information excludes amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring and other charges, acquisition-related costs, including integration costs, non-GAAP tax reconciling adjustments, and other adjustments. Management does not believe that these items are reflective of the Company’s underlying performance. Internally, these non-GAAP measures are significant measures used by management for purposes of evaluating the core operating performance of the Company, establishing internal budgets, calculating return on investment for development programs and growth initiatives, comparing performance with internal forecasts and targeted business models, strategic planning, evaluating and valuing potential acquisition candidates and how their operations compare to the Company’s operations, and benchmarking performance externally against the Company’s competitors. The exclusion of these and other similar items from Broadcom’s non-GAAP financial results shou…

25. #25prepared remarks

    Free cash flow measures have limitations as they omit certain components of the overall cash flow statement and do not represent the residual cash flow available for discretionary expenditures. Investors should not consider presentation of free cash flow measures as implying that stockholders have any right 3

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    to such cash. Broadcom’s free cash flow may not be calculated in a manner comparable to similarly named measures used by other companies.

27. #27prepared remarks

    Broadcom Inc. (NASDAQ: AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations’ complex, mission-critical needs. Broadcom combines long-term R&D investment with superb execution to deliver the best technology, at scale. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, visit www.broadcom.com.

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    Cautionary Note Regarding Forward-Looking Statements

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    This announcement contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning Broadcom. These statements include, but are not limited to, statements that address our expected future business and financial performance, our plans and expectations with regard to our share repurchases, and other statements identified by words such as “will,” “expect,” “believe,” “anticipate,” “estimate,” “should,” “intend,” “plan,” “potential,” “predict,” “project,” “aim,” and similar words, phrases or expressions. These forward-looking statements are based on current expectations and beliefs of Broadcom’s management, current information available to Broadcom’s management, and current market trends and market conditions and involve risks and uncertainties that may cause actual results to differ materially from those contained in these forward-looking statements. Accordingly, undue reliance should not be placed on such statements.

30. #30prepared remarks

    Particular uncertainties that could materially affect future results include risks associated with: global economic conditions and uncertainty; government regulations, trade restrictions and trade tensions; global political and economic conditions relating to our international operations; cyclicality in the semiconductor industry undergoing profound change due to AI; any loss of our significant customers and fluctuations in the timing and volume of significant customer demand; the slow or unsuccessful return on our research and development investments, expansion of our business strategy or adoption of new business models; our dependence on contract manufacturing and outsourced supply chain; our dependency on a limited number of suppliers; our ability to continue winning business in the semiconductor solutions industry; our ability to accurately estimate customers’ demand and adjust our manufacturing and supply chain accordingly; dependence on senior management and our ability to attract and retain qualified personnel; our ability to maintain or improve gross margin; our ability to protect against cybersecurity threats and a breach of security systems; prolonged disruptions of our,…