Broadcom Q1 Hits Record AI Revenue

Broadcom started the year with a record quarter that combined AI momentum with a shareholder-return habit that refuses to cool off. For fiscal Q1 2026, ended February 1, 2026, the company reported record revenue of $19.311 billion, up 29% year over year, with GAAP net income of $7.349 billion ($1.50 diluted EPS) and non-GAAP diluted EPS of $2.05. Broadcom said AI revenue reached $8.4 billion in Q1, up 106% year over year, setting up the most important question for investors - how much of the record print was pulled forward by AI demand, and how durable the trend is.

The growth was driven by demand for custom AI accelerators and AI networking. Semiconductor Solutions revenue jumped 52% to $12.515 billion, while Infrastructure Software was $6.796 billion (up 1%)—a very “one segment is doing sprints while the other is doing yoga” kind of mix. The profitability/cash conversion stayed hot - adjusted EBITDA was $13.128 billion (68% of revenue) and free cash flow was $8.010 billion (41% of revenue). Netting it out, this wasn’t just top-line excitement — it was a high-conversion quarter with the profitability metrics to match.

With the quarter in the bag, Broadcom immediately shifted the focus to what matters next for the stock - Q2 expectations and shareholder returns. The company said it returned $10.9 billion in Q1, consisting of $3.1 billion of cash dividends and $7.8 billion of stock repurchases. It also declared a $0.65 quarterly dividend payable March 31, 2026 (record date March 23, 2026) and authorized a new $10 billion share repurchase program through December 31, 2026. If those guideposts hold, Broadcom isn’t just riding the AI wave — it’s pricing the tolls and returning the change.

For the current quarter, Broadcom guided Q2 fiscal 2026 revenue to approximately $22.0 billion. The company noted this would represent a 47% increase year over year, and it expects adjusted EBITDA of around 68% of projected revenue. On the AI side, management said it expects AI semiconductor revenue to be $10.7 billion in Q2. That gives investors a pretty clean scoreboard to track: the top line, the margin framework, and whether AI continues to scale — and it reinforces that Broadcom is pairing growth with shareholder returns, not choosing between them.

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