Q1 2026 Broadcom Inc Earnings Call Transcript
Key Points
- Broadcom Inc (AVGO) reported a record total revenue of $19.3 billion for fiscal Q1 2026, marking a 29% year-on-year increase.
- The company's semiconductor revenue reached a record $12.5 billion, with AI semiconductor revenue growing 16% year-on-year to $8.4 billion.
- Broadcom Inc (AVGO) expects Q2 2026 consolidated revenue to reach approximately $22 billion, representing a 47% year-on-year growth.
- The company has secured multi-year supply agreements for key components, ensuring capacity through 2028.
- Broadcom Inc (AVGO) has expanded its customer base to six major clients for its custom AI XPUs, indicating strong demand and strategic partnerships.
- Non-AI semiconductor revenue was flat year-on-year at $4.1 billion in Q1, indicating limited growth in this segment.
- Infrastructure software revenue grew only 1% year-on-year in Q1, suggesting slower growth compared to the semiconductor segment.
- The company faces potential competition from customer-owned tooling (COT) initiatives, although it currently maintains a technological edge.
- Broadcom Inc (AVGO) anticipates a potential impact on gross margins due to the mix of AI and non-AI products, although it claims this will not be substantial.
- There is a risk of over-reliance on a limited number of major customers for AI XPUs, which could impact revenue if any customer reduces demand.
Welcome to Broadcom Inc.'s first quarter fiscal year 2026 financial results conference call.
At this time, for opening remarks and introductions, I would like to turn the call over to Ji Yoo, Head of Investor Relations of Broadcom Inc.
Thank you, operator, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO; Kirsten Spears, Chief Financial Officer; Charlie Kawwas, President, Semiconductor Solutions Group; and Ram Velaga, President, Infrastructure Software Group.
Broadcom distributed a press release and financial tables after the market closed describing our financial performance for the first quarter fiscal year 2026. If you did not receive a copy, you may obtain the information from the investor section of Broadcom's website at broadcom.com. This conference call is being webcast live and an audio replay of the call can be accessed for one year through the investors section of Broadcom's website.
During the prepared comments, Hock and Kirsten will be
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