AVGO · Q3 FY2026
Broadcom Inc. Q3 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $29.591B | $15.952B (yr ago) | Beat |
| EPS | $2.68 GAAP diluted | $0.85 (yr ago) | Beat |
| Free Cash Flow | $13.665B | $7.024B (yr ago) | Beat |
| Gross Margin | 69.1% GAAP | 67.1% (yr ago) | Beat |
| Operating Margin | 53.9% GAAP | 36.9% (yr ago) | Beat |
What changed
Revenue increased 85.5% year over year to $29.591 billion as AI semiconductor revenue rose 221% to $16.7 billion. GAAP operating margin expanded 17.0 percentage points to 53.9%, while free cash flow increased 94.6% to $13.665 billion. Management guided Q4 FY2026 revenue to approximately $34.8 billion and AI semiconductor revenue to $21.7 billion.
Impact on the investment thesis
With no prior SageNoodle valuation, fair value is initiated rather than changed at $363 per share. The quarter supports a premium multiple through faster AI growth, wider GAAP margins and stronger cash generation, but the current price already reflects most of that improvement.