---
title: "Broadcom’s AI quarter: the exhibit, and what the 10-Q owes"
description: "Broadcom furnished $29.6B of Q3 FY2026 revenue and $16.7B of AI semiconductor revenue. The Q3 10-Q is not filed yet. What the Q2 10-Q already adds."
canonical: https://evidinvest.com/blog/avgo-q3-fy26-earnings-ai-revenue-what-the-10q-adds-2026-09-08
date: "2026-09-08"
last_updated: "2026-09-08"
author: "EvidInvest Team"
publisher: "EBD Sweden AB (EvidInvest)"
tags: ["AVGO", "Broadcom", "AI semiconductors", "custom AI accelerators", "8-K", "10-Q", "SEC filings"]
---

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

- Published: 2026-09-08
- Author: EvidInvest Team, EvidInvest (published by EBD Sweden AB)
- Canonical URL: https://evidinvest.com/blog/avgo-q3-fy26-earnings-ai-revenue-what-the-10q-adds-2026-09-08
- Research, not investment advice.

> Broadcom furnished $29.6B of Q3 FY2026 revenue and $16.7B of AI semiconductor revenue. The Q3 10-Q is not filed yet. What the Q2 10-Q already adds.

*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](https://evidinvest.com/valuation/AVGO) (**[$AVGO](https://evidinvest.com/valuation/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](https://evidinvest.com/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](https://www.sec.gov/Archives/edgar/data/1730168/000173016826000076/avgo-08022026x8kxex99.htm)).
Q2 FY2026 10-Q: accession `0001730168-26-000054`
([sec.gov](https://www.sec.gov/Archives/edgar/data/1730168/000173016826000054/avgo-20260503.htm)).
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.*

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