Broadcom (AVGO) Q2 FY2026: Revenue +48%, AI Chips +143%, $29B Post-Quarter Backstop

Broadcom's AI franchise did not just grow in the quarter ended May 3, 2026 — it reshaped the company's financial profile, with semiconductor revenue up 78.5% year over year and consolidated operating margin expanding nearly ten points to 48.6%. AI semiconductor revenue alone reached $10.8 billion, up 143% year over year and equal to 49% of total company revenue. But the more consequential disclosures sit outside the income statement: remaining performance obligations of $164.6 billion, unconditional purchase commitments of $128.1 billion, and a post-quarter agreement dated June 8, 2026 to backstop up to $29 billion of a customer's AI rack lease obligations. Broadcom is no longer simply selling custom accelerators; it is increasingly standing behind the financing structures the customers use to deploy them. For investors, the question has shifted from whether AI demand is real to how much counterparty and inventory risk the company is absorbing to capture it.

Sources: all balance sheet, income statement, cash flow and commitment figures are from Broadcom's Form 10-Q for the fiscal quarter ended May 3, 2026 (filed with the SEC). AI segment revenue, free cash flow as reported by the company, and third-quarter guidance are from Broadcom's Q2 FY2026 earnings press release dated June 3, 2026.

1. Consolidated Balance Sheet

1-1. Principal Asset Movements

Comparisons are against the fiscal year-end balance sheet of November 2, 2025, the company's stated prior-period column.