By Radek Strnad
Publication Date: 2026-06-10 07:45:00
Broadcom’s first quarter results for 2026 exceeded Wall Street’s expectations for both revenue and profit, yet shares fell sharply as investors digested underlying trends. Management credited surging demand for AI semiconductors as the core driver of year-on-year growth, with CEO Hock E. Tan emphasizing that “AI semiconductor revenue reached a record $10.8 billion, up 143% year on year.” Margins benefited from scale and operating leverage, but the company noted that product mix shifts—particularly the growing share of lower-margin AI chips—tempered gross margin performance. Outgoing CFO Kirsten Spears highlighted that, despite robust operating performance, “gross margin was down 32 basis points year on year as semiconductor became a larger proportion of our product mix.”
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Broadcom (AVGO) Q1 CY2026 Highlights:
Revenue: $22.19 billion vs analyst estimates of $22.06…
