Broadcom Inc. has released its financial results for the second quarter of fiscal year 2026, showcasing a strong performance. The company reported a 48% increase in revenue to $22.187 billion, with a 52% rise in adjusted EBITDA to $15.244 billion. Net income and diluted EPS also saw significant growth, with GAAP net income at $9.310 billion and Non-GAAP net income at $12.074 billion. Cash from operations was $10.493 billion, resulting in $10.262 billion of free cash flow, a 60% increase from the previous year. The company's strong performance is attributed to accelerating growth in AI semiconductor revenue and strong operating leverage.
Broadcom's AI semiconductor revenue grew 143% year-over-year to $10.8 billion, driven by increasing demand for custom AI accelerators and AI networking. This momentum is expected to continue, with Q3 semiconductor revenue from AI projected to grow over 200% year-over-year to $16.0 billion. The company's consolidated revenue grew 48% year-over-year to $22.2 billion, with adjusted EBITDA increasing 52% to $15.2 billion, representing 69% of revenue.
Broadcom's financial performance has been impressive, with a 46% increase in free cash flow to $10.262 billion. The company's cash and cash equivalents at the end of the fiscal quarter were $19.628 billion, up from $14.174 billion in the previous quarter. The Board of Directors has approved a quarterly cash dividend of $0.65 per share, payable on June 30, 2026.
Broadcom's third-quarter fiscal year 2026 revenue guidance is approximately $29.4 billion, an 84% increase from the prior year period. Non-GAAP operating income and adjusted EBITDA guidance are projected to be 67% and 68% of projected revenue, respectively. The company's strong performance and positive outlook are a testament to its leadership in the semiconductor and infrastructure software solutions industry.
In summary, Broadcom's financial results for the second quarter of fiscal year 2026 demonstrate its strong performance and positive trajectory. The company's focus on AI semiconductor revenue and operating leverage has driven significant growth, and its financial outlook for the third quarter is promising. Broadcom's commitment to innovation and its position as a technology leader in the industry are key factors in its continued success.
