Broadcom Q2 Revenue Hits $22.2B, AI Sales Surge 143%
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- Broadcom reported Q2 2026 revenue of $22.2 billion, up 48% YoY, driven by AI semiconductor sales.
- AI semiconductor revenue reached $10.8 billion, a 143% YoY increase, and the company projects $16 billion for Q3, a >200% YoY rise.
- Operating margin hit a record 67% in Q2.
- Gross margin slipped 230 bps to 77.1% as the product mix shifted toward lower‑margin ASICs and TPUs.
- Long‑term agreements with Google, Anthropic and OpenAI lock in future demand, yet a $30 billion booking backlog versus $10.8 billion shipped hints at supply‑chain constraints.
- Free cash flow amounted to $10.3 billion (46% of revenue) and the company paid $3.1 billion in cash dividends.
- Q3 guidance projects $29.4 billion revenue (84% YoY growth) and a gross margin near 74%.
Why it matters: Investors see Broadcom’s explosive AI semiconductor growth as a catalyst for revenue, but the margin compression and $30 billion backlog raise concerns about supply constraints and profitability, affecting shareholders and customers reliant on timely chip deliveries.
