Broadcom launched its AI XPV platform in June 2026 with an initial $35 billion tranche led by a financial partner to deploy more than 1 gigawatt of compute infrastructure for a frontier AI lab customer, targeting more than 20 gigawatts of capacity through 2028. Under the arrangement, a financial partner purchases AI racks based on Broadcom's custom AI accelerators (XPUs) and leases them to the customer; Broadcom entered a 5-year backstop with maximum potential liability of approximately $29 billion (undiscounted), and the customer may issue convertible promissory notes to Broadcom up to an aggregate $42 billion. No notes had been issued and no amounts paid under the backstop as of August 2, 2026.
Fiscal Q3 net revenue rose 86% year-over-year to $29,591 million, with semiconductor solutions revenue up 127% to $20,839 million driven by what Broadcom described as strong demand for custom AI accelerators and AI networking products. Infrastructure software revenue increased 29% to $8,752 million, attributed to VMware Cloud Foundation demand including license revenue on non-cancellable contracts. A single distributor customer accounted for 50% of total net revenue (vs. 32% a year earlier), and top five end customers represented approximately 55% of revenue.
Broadcom disclosed that as of the fiscal quarter ended August 2, 2026, the majority of its new software contracts no longer include termination-for-convenience provisions, a structural change that shifts revenue recognition toward upfront license recognition. Upfront license revenue of $3,465 million was included in products revenue for the quarter. Total remaining performance obligations (firmly committed, non-cancellable contracts) stood at approximately $179.2 billion as of August 2, 2026, including obligations under a long-term custom AI accelerator contract entered in the prior quarter (fiscal Q2 2026, ended May 3, 2026); Broadcom expects roughly 25% to be recognized over the next 12 months.
Inventory nearly doubled to $4,523 million from $2,270 million at fiscal year-end, which Broadcom attributed to supporting higher expected shipments for AI-related semiconductor solutions. Approximately 95% of wafers manufactured by contract makers during the three fiscal quarters ended August 2, 2026 were produced by TSMC, and more than three-quarters of manufacturing materials were sourced from five suppliers, some single-source, underscoring supply-chain concentration risks.
Broadcom repurchased $5,641 million of senior notes via cash tender offers and redemptions during the quarter and issued $4,500 million of new senior notes in January 2026 (maturities 2031-2056), reducing total debt principal from $67,120 million to $61,079 million. The Board authorized an additional $10 billion stock repurchase program in March 2026; during the three quarters ended August 2, 2026, the company repurchased 25 million shares for $8,450 million, leaving $10.1 billion of authorized capacity remaining.
(Filed on June 9, 2026)
+47.9%
69.5%
$19.6B
Semiconductor solutions revenue rose 79% year-over-year to $15.0 billion in Q2 FY2026, driven by strong demand for custom AI accelerators and AI networking products; infrastructure software revenue grew 9% to $7.2 billion, attributed primarily to VMware Cloud Foundation demand. Total net revenue was $22.2 billion, up 48% from $15.0 billion a year earlier.
Broadcom disclosed approximately $164.6 billion in remaining performance obligations as of May 3, 2026, explicitly including obligations under a long-term custom AI accelerator contract entered during this quarter; roughly 30% is expected to be recognized as revenue over the next 12 months. Inventory nearly doubled to $4.3 billion from $2.3 billion at fiscal year-start, stated as supporting higher expected shipments for custom AI accelerators.
Subsequent to quarter-end (June 8, 2026), Broadcom arranged for Apollo to take on purchase agreements for AI racks based on its custom AI accelerators and related customer lease agreements, and entered a backstop agreement covering the customer's 5-year lease obligations with a maximum exposure of $29 billion. The filing also describes a broader shift toward new business models involving purchase-and-lease of AI racks/systems based on XPUs, alternative financing, and novel or deferred payment structures.
Customer concentration intensified: direct sales to one semiconductor solutions distributor accounted for 42% of Q2 revenue (versus 29% a year prior), and top five end customers through all channels represented approximately 45% of net revenue. Supply chain concentration remained high, with approximately 95% of wafers manufactured by TSMC and more than three-quarters of manufacturing materials sourced from five suppliers during the two-quarter period.
Broadcom reclassified $1,964 million of upfront software license revenue from subscriptions and services into products revenue for the quarter ($3,719 million for the two-quarter period), with conforming reclassifications of $1,803 million and $3,775 million in the prior-year periods; the company stated related costs were immaterial. Sales to distributors accounted for 56% of net revenue over the two-quarter period.
(Filed on March 11, 2026)
+29.5%
68.1%
$14.2B
Semiconductor solutions revenue grew 52% YoY to $12,515M (from $8,212M), driven by strong demand for custom AI accelerators and AI networking products; infrastructure software revenue was essentially flat at $6,796M (+1% YoY). Total net revenue rose 29% to $19,311M, with gross margin held at 68% despite the higher semiconductor mix.
Customer concentration intensified materially: one semiconductor solutions distributor customer rose from 29% to 42% of quarterly net revenue, and aggregate top-five end-customer share increased from ~40% to ~50%. Broadcom disclosed it may pursue a new business model of selling or leasing AI racks or systems based on its custom XPUs, potentially with alternative financings or deferred payment structures, which it expects will increase operating margin but compress gross margin.
Supply-chain concentration deepened: approximately 95% of wafers manufactured by contract manufacturers were produced by TSMC during the quarter, and more than three-quarters of manufacturing materials were sourced from five suppliers, some single-source. In-process R&D on the balance sheet stood at $750M (down from $820M prior quarter), and remaining performance obligations under multi-year semiconductor and infrastructure software contracts were approximately $45.0B, with ~33% expected to be recognized as revenue within 12 months.
Other notable items: Broadcom recognized a $315M non-operating gain from the reversal of Inflation Reduction Act excise tax charges on its VMware acquisition after final regulations exempted stock purchases in M&A; two-year time- and market-based RSU awards (granted Q2 FY2025 in lieu of annual grants) drove stock-based compensation to $2,176M (+70% YoY) with $21,971M unrecognized over a 3.2-year weighted-average period; and the company repurchased $7,850M of stock during the quarter, leaving only $700M under the $11B program, before the Board authorized a new $10B buyback in March 2026.
(Filed on December 18, 2025)
+28.2%
68.0%
$16.2B
Q4 FY2025 (quarter ended Nov 2, 2025): Broadcom issued $5 billion in senior unsecured notes in September 2025 (4.200% due 2030, 4.800% due 2036, 4.900% due 2038) as part of FY2025 debt refinancing that also included repaying the remaining $13,595M of 2023 VMware-acquisition Term Loans. No shares were repurchased during Q4; $7,550M remained on the $10B buyback authorization, which the Board extended to December 31, 2026 subsequent to fiscal year-end.
Annual context (FY2025, not Q4-only): Total net revenue was $63,887M (+24% YoY), with semiconductor solutions at $36,858M (+22%) driven primarily by strong demand for custom AI accelerators (XPUs) and AI networking products, and infrastructure software at $27,029M (+26%) driven by VMware Cloud Foundation license revenue (including non-terminable contracts) and the transition to subscription licensing. Gross margin expanded to 68% from 63%, and operating income more than doubled to $25,484M from $13,463M. One semiconductor distributor customer accounted for 32% of FY2025 revenue (vs. 28% in FY2024); top five end customers represented approximately 40% of revenue; and 95% of contract-manufactured wafers were produced by TSMC.
Annual context (VMware integration, not Q4-only): Broadcom stated it has substantially completed VMware integration restructuring; FY2025 restructuring and other charges totaled approximately $667M (down from ~$1,787M in FY2024), primarily employee termination costs. Of the VMware IPR&D acquired at the merger, $750M related to VMware Cloud Foundation July 2025 releases was at 43% completion as of the acquisition and is expected to be released during H1 of fiscal year 2026, representing a near-term product roadmap milestone for the private cloud platform.
Annual context (concentration and tax, not Q4-only): 17% of FY2025 net revenue was shipped to or delivered in China (including Hong Kong), and two-thirds of manufacturing materials were purchased from five suppliers, some single-sourced. The July 4, 2025 One Big Beautiful Bill Act prompted a $1,321M valuation allowance against federal CAMT credits, and Broadcom expects the Singapore global minimum tax, effective in fiscal year 2026, to materially increase its effective tax rate and cash tax costs going forward.
(Filed on September 10, 2026)
(Filed on September 10, 2025)
+22.0%
67.1%
$10.7B
Total net revenue for Q3 FY2025 (quarter ended August 3, 2025) was $15,952M, up 22% year-over-year. Semiconductor solutions revenue grew 26% to $9,166M, attributed to strong demand for networking products, primarily custom AI accelerators and AI networking solutions. Infrastructure software revenue grew 17% to $6,786M, driven by VMware Cloud Foundation demand, additional license revenue on non-terminable contracts, and continued transition to a subscription license model. Q3 operating income rose 55% to $5,887M; gross margin improved to 67% from 64% a year earlier.
Broadcom expects VMware-related restructuring (employee terminations and lease/PP&E impairments) to be substantially completed by the end of fiscal year 2025. Q3 restructuring charges totaled $143M ($108M employee terminations, $35M impairments), down sharply from $361M in the prior-year quarter. The securities class action against VMware and former officers over backlog disclosures was resolved: the Northern District of California approved settlement terms in March 2025.
In July 2025, Broadcom issued $6,000M of fixed-rate senior unsecured notes (maturities 2030-2035) and used proceeds to repay the remaining $6,000M floating-rate unsecured term facility due November 2028, terminating the August 2023 credit agreement. Combined with May 2025 term loans of $1,750M at fixed rates, the company eliminated all floating-rate term loan exposure (previously $13.6B at fiscal year start). Total debt principal declined to $66,257M from $69,847M at November 3, 2024.
The One Big Beautiful Bill Act, enacted July 4, 2025, prompted Broadcom to establish a $1,058M valuation allowance against federal CAMT credit carryforwards, as utilization of those credits is no longer considered more-likely-than-not. Separately, lapsing statutes of limitations are expected to reduce unrecognized tax benefits by approximately $3.1B in the quarter ending November 2, 2025 and up to $3.5B within 12 months, with a potential discrete tax benefit of up to $2.1B in that quarter.
Customer and supply-chain concentration remains elevated: one semiconductor distributor customer accounted for 32% of Q3 net revenue (26% in the prior-year quarter), and the top five end customers represented roughly 40% of revenue. TSMC manufactured approximately 95% of wafers produced by Broadcom's contract manufacturers during the first three quarters of fiscal 2025. Remaining performance obligations stood at approximately $27.5B, with ~34% expected to be recognized over the next 12 months.
Broadcom's risk factor disclosures reference a new business model involving the sale or leasing of AI racks based on its XPUs (custom AI accelerators) as an evolving strategy. This is framed as a plan and associated risk rather than a completed commercial deployment; the filing does not disclose specific customer commitments, revenue, or volume figures attributable to AI rack sales or leases in the quarter.
