Broadcom Q3 FY2026 Earnings Call
With Hock Tan (President and CEO), Amie Thuener (CFO) and Charlie Kawwas (President of Semiconductor Solutions Group).
Broadcom provides semiconductors and infrastructure software for global organizations’ complex, mission-critical needs. We combine long-term R&D investment with superb execution to deliver the best technology, at scale.
More about Broadcom
Through focus and expertise, Broadcom sets the standard in industries where technology breakthroughs shape markets. Our semiconductor and semiconductor-based solutions serve markets across networking connectivity, wireless device connectivity, servers and storage systems, broadband, and industrial. Broadcom’s infrastructure software solutions serve markets including private cloud, mainframe software, cybersecurity, enterprise software, and Fibre Channel storage area network management. With these core technologies, we help customers accelerate their innovation.
1Prepared remarks3 speakers
Thank you, Cherie, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO, Amie Thuener, Chief Financial Officer, and Charlie Kawwas, President, Semiconductor Solutions Group. Broadcom distributed a press release and financial tables after the market closed describing our financial performance for the third quarter fiscal year 2026. If you did not receive a copy, you may obtain the information from the Investor section of Broadcom's website at broadcom.com.
This conference call is…
Well, thank you, Ji, and thank you everyone here for joining us today. We delivered an exceptional quarter with revenue, operating income and free cash flow all exceeding prior records. Driving this was our Q3 AI semiconductor revenue, which grew 221% year-on-year and up 54% sequentially. This brought our consolidated revenue to $29.6 billion, which was up 86% year-on-year. Operating income grew even faster at 92% year-on-year, with operating margin at a record 68% of revenue, reflecting strong operating leverage…
Thank you, Hock. Let me now provide additional detail on our Q3 financial performance. Consolidated revenue was a record $29.6 billion for the quarter, up 86% year-on-year. Gross margin was 75% of revenue in the quarter, down 210 basis points sequentially as AI semiconductor revenue was a greater proportion of our total revenue mix. This was better than our guidance of 74%. Q3 operating income was a record $20.1 billion, up 92% from a year ago. Even with the decline in gross margin due to revenue mix, operating…