Broadcom’s AI quarter: the exhibit, and what the 10-Q owes

Figures below were read from Broadcom’s own documents on EDGAR: Exhibit 99.1 to the Form 8-K furnished 2 September 2026 (accession 0001730168-26-000076, fiscal quarter ended 2 August 2026); the Q2 FY2026 Form 10-Q filed 9 June 2026 (accession 0001730168-26-000054, period ended 3 May 2026); the Q1 FY2026 Form 10-Q filed 11 March 2026 (accession 0001730168-26-000016); the Q2 earnings Exhibit 99.1 furnished 3 June 2026 (accession 0001730168-26-000051); and the Form 8-K filed 6 April 2026 (accession 0001193125-26-144028). Broadcom’s Q3 FY2026 Form 10-Q had not been filed as of 8 September 2026 — every quarterly-report figure below is from the Q2 10-Q, labelled as such. Research, not investment advice.

If you traded Broadcom ($AVGO) last week, you traded a press release. The 8-K says so in its own words: the information in Item 2.02 and Exhibit 99.1 “are furnished and shall not be treated as filed for purposes of the Securities Exchange Act of 1934.” That is not a technicality about a document nobody reads. It is the difference between the four numbers that moved the tape and the twenty that describe how the company is financing them.

The quarterly report carrying those twenty numbers is not out yet. So: what the exhibit said, what the last 10-Q already adds, and what to check when the Q3 10-Q lands. If you want a verdict on the print, this is the wrong page.

The exhibit said X

Exhibit 99.1 (accession 0001730168-26-000076), for the fiscal quarter ended 2 August 2026:

• Net revenue $29,591 million, up 86% from $15,952 million.
• Semiconductor solutions $20,839 million, 70% of revenue, up 127% from $9,166 million. Infrastructure software $8,752 million, 30% of revenue, up 29% from $6,786 million.
• GAAP operating income $15,955 million (up 171%); non-GAAP $20,095 million (up 92%). GAAP net income $13,088 million; GAAP diluted EPS $2.68; non-GAAP diluted EPS $3.32.
• Cash from operations $14,197 million, capital expenditures $532 million, free cash flow $13,665 million — 46% of revenue.
• Cash and equivalents $23,975 million, from $19,628 million at the end of the prior fiscal quarter.

The AI line everyone quoted is a CEO quote inside that furnished exhibit, not a reported segment: “Q3 AI semiconductor revenue of $16.7 billion grew 221% year-over-year, and 54% quarter-over-quarter.” It reconciles with the June exhibit, which put Q2 AI revenue at $10.8 billion and guided Q3 to $16.0 billion (accession 0001730168-26-000051). On the exhibit’s own figures AI is now roughly 56% of consolidated revenue.

The Q4 numbers are furnished guidance, with no GAAP reconciliation — the exhibit says the company “is not readily able to provide a reconciliation of projected non-GAAP financial measures … without unreasonable effort”:

• Q4 FY2026 revenue of approximately $34.8 billion, up 93%.
• Q4 non-GAAP operating income of approximately 66% of projected revenue.
• AI semiconductor revenue expected to “accelerate to $21.7 billion, up 236% year-over-year.”

One line the exhibit prints and the headlines skipped: non-GAAP gross margin of $22,191 million on $29,591 million of revenue, against $12,499 million on $15,952 million a year earlier — roughly 75% of revenue versus roughly 78%. Stock-based compensation was $2,019 million in the quarter. There were no repurchases under the buyback programme in Q3; the three-quarter figure is $8,450 million, all of it earlier in the year. Interest expense was $778 million against $807 million a year ago, on $5,628 million of debt payments in the quarter. Kirsten Spears signed the June exhibit as CFO; Amie Thuener signs this one.

The 10-Q adds Y — and the current one is Q2

Here is the part the exhibit never carries, and the part that is still one quarter stale. From the Q2 FY2026 10-Q (accession 0001730168-26-000054, period ended 3 May 2026):

Order book. Remaining performance obligations under multi-year contracts with firmly committed amounts were approximately $164.6 billion, and those commitments “include obligations under a long-term contract for custom AI accelerators entered in the fiscal quarter ended May 3, 2026.” About 30% is expected as revenue over the next 12 months. One quarter earlier the same disclosure read approximately $45.0 billion (accession 0001730168-26-000016). Contract liabilities were $14,242 million against $13,016 million at fiscal year-end, roughly 64% of them under contracts subject to termination-for-convenience provisions.

Purchase commitments. This is the single largest step change in the filings. Unconditional purchase commitments totalled $128,110 million at 3 May 2026 — $55,214 million falling in fiscal 2027 and $72,870 million in fiscal 2028. At 1 February 2026 the same table totalled $54 million. Inventory rose to $4,328 million from $2,270 million at fiscal year-end, which Item 2 attributes “primarily to support higher expected shipments for custom AI accelerators.” The Q3 exhibit balance sheet carries inventory forward to $4,523 million; it prints no commitment table at all.

Customer concentration. Broadcom does not use “Customer A / Customer B” labels. It writes that direct sales to “one semiconductor solutions customer, which is a distributor” were 42% of net revenue for the quarter and half year ended 3 May 2026, against 29% a year earlier, and that sales through all channels to the top five end customers were approximately 45% against 40%. The Q1 10-Q put that top-five figure at approximately 50%. Distributors as a channel were 56% of net revenue for the half. No customer is named anywhere in the filing.

Debt and returns. Total debt principal outstanding $66,720 million; $2,252 million due within twelve months and $47,787 million after fiscal 2030; no borrowings under the $7.5 billion revolver and no commercial paper outstanding. Broadcom repurchased 25 million shares for $8,450 million in the half, with $10.1 billion of authorisation remaining. It also sold $2,350 million of trade receivables under non-recourse factoring arrangements in the half — a cash-flow line the exhibit does not separate.

The financing partner the April 8-K only hinted at

We covered the April 8-K (accession 0001193125-26-144028) when it landed: Broadcom and Google signed a long-term agreement for custom TPUs plus a supply assurance agreement for networking through up to 2031, and Anthropic will access approximately 3.5 gigawatts through Broadcom beginning in 2027 — with consumption “dependent on Anthropic’s continued commercial success.” That 8-K closed with a sentence most coverage skipped: “the parties are in discussions with certain operational and financial partners.”

The Q2 10-Q says who, and how much. As a subsequent event dated 8 June 2026, Broadcom “arranged for Apollo (‘investor partner’) to take on certain agreements to purchase AI racks based on custom AI accelerators designed by us and the related lease agreements with a customer.” Broadcom entered a backstop agreement for that customer’s lease obligations over 5-year terms, rising as racks deploy and falling as the customer pays, with a maximum exposure of $29 billion. In default, Broadcom’s remedies include assuming the lease or selling the racks.

Item 1A generalises it. Top customers, “including our AI solutions customers,” may seek to lease XPUs or require Broadcom to buy and then lease full AI racks, and “such arrangements have and may impose financial obligations, including backstops or guarantees, upon us or increase our exposure to credit or customer default risks.” A separate risk factor says selling custom AI accelerators, XPUs and AI racks “will likely increase our operating margin but compress or lower future gross margin.” The exhibit’s 75%-versus-78% non-GAAP gross margin is that sentence arriving.

What would change the thesis

Not the beat. Four filed lines, when the Q3 10-Q posts:

1. RPO. Does ~$164.6 billion hold, and does the ~30%-within-12-months share move? A falling near-term share means the book is lengthening, not converting.
2. Purchase commitments. $128.1 billion appeared in one quarter against $54 million the quarter before. Whether it keeps climbing, and how much lands in fiscal 2027, is the supply-risk number.
3. Concentration. Top-five went ~50% → ~45%; the single distributor sat at 42%.
4. Backstop. Does the $29 billion maximum exposure stay a subsequent-event paragraph, and does new AI-customer concentration language appear in Item 1A?

You can park those as a Thesis Monitor check against the next filing rather than the next headline: RPO, commitments, top-five share, backstop. The exhibit is furnished. The 10-Q is filed. Only one of them is the thesis.

Q3 FY2026 Exhibit 99.1: accession 0001730168-26-000076 (sec.gov). Q2 FY2026 10-Q: accession 0001730168-26-000054 (sec.gov). Q1 FY2026 10-Q: 0001730168-26-000016. Q2 Exhibit 99.1: 0001730168-26-000051. Google / Anthropic 8-K: 0001193125-26-144028. Broadcom’s Q3 FY2026 10-Q was not on EDGAR as of 8 September 2026. Research, not investment advice.