Broadcom Inc. (AVGO) reported a gross margin of 77% for the first quarter of fiscal 2026, down from 79.4% in Q2 2025. The company anticipates the second-quarter gross margin to remain at 77%, attributed to a less favorable product mix. For the upcoming quarter, Broadcom expects revenues of $22 billion, marking a 47% year-over-year increase, with AI revenues projected to reach $10.7 billion—a 140% jump compared to the previous year.
In the first quarter of fiscal 2026, Broadcom’s semiconductor sales benefitted from a 106% surge in AI revenues, while AI networking revenues grew by 60%. The company is positioned for continued growth against competitors like NVIDIA and AMD, driven by new product innovations and expanding market share in AI technologies. Analysts anticipate a consensus estimate of $2.35 per share for Q2 earnings, reflecting a 48.7% increase from the year-ago quarter.
As of now, AVGO shares have declined 10.5% year-to-date, slightly outperforming the broader Zacks Computer and Technology sector’s decline of 11.5%. Broadcom aims to exceed $100 billion in AI-related revenue by 2027, affirming its strong market position.
