Broadcom (AVGO) has put up another big quarter, with Q2 2026 revenue at about US$22.2b, basic EPS of US$1.96 and trailing 12 month EPS of US$6.19 on revenue of roughly US$75.5b, alongside earnings growth of 121.9% over the past year. The company has seen quarterly revenue move from about US$15.0b and EPS of US$1.05 in Q2 2025 to US$22.2b and EPS of US$1.96 in Q2 2026. Trailing 12 month revenue has stepped up from around US$57.0b and EPS of US$2.83 a year ago to US$75.5b and US$6.19 today, setting the scene for investors to focus on how expanding margins are shaping the Broadcom story.
See our full analysis for Broadcom.With the headline numbers on the table, the next step is to see how they line up against the dominant market narratives around Broadcom's growth, risks and long term profitability profile.
See what the community is saying about Broadcom
Net Margin Sits At 38.8%
- Over the last 12 months, Broadcom converted US$75.5b of revenue into US$29.3b of net income, which works out to a 38.8% net profit margin compared with 23.2% a year earlier.
- Supporters of the bullish view point to this margin profile as backing the idea that AI and software are lifting profitability, yet the quarterly pattern shows some nuance:
- Q2 2026 net income of US$9.3b on US$22.2b of revenue sits alongside Q4 2025 net income of US$8.5b on US$18.0b of revenue, so recent quarters are all contributing meaningfully to that 38.8% trailing margin.
- Bulls also highlight that trailing EPS of US$6.19 is far above the US$2.83 level a year ago, which lines up with their view of strong earnings power, although it still needs to be weighed against how much of this is tied to AI heavy demand rather than broader semiconductor and software trends.
Supporters who think the strongest upside is still ahead often anchor on these high margins and AI driven contracts, and they build a very optimistic long term path from there. 🐂 Broadcom Bull Case
Revenue Growth Outpaces TTM Trend
- Q2 2026 revenue of US$22.2b compares with trailing 12 month revenue of US$75.5b, so this single quarter accounts for roughly 29% of the last year’s sales and sits above the average of the prior five reported quarters, which ranged from US$14.9b to US$19.3b.
- Analysts who take a balanced or slightly bullish stance often argue that strong AI related demand can support this higher quarterly run rate, yet the mix of risks they flag is very specific:
- Consensus commentary points to large multi year AI bookings and a US$110b backlog as context for the earnings growth figure of 121.9% over the past year, which fits with the step up from US$15.0b in Q2 2025 revenue to US$22.2b in Q2 2026.
- At the same time, the same narrative underlines that non AI segments have experienced slower recoveries, so the heavy reliance on a few large AI customers is a key factor for readers to keep in mind when looking at how much of this US$22.2b quarter might be repeatable across different parts of the business.
High Debt Keeps Bears Focused
- The trailing 12 month numbers show US$29.3b of net income on US$75.5b of revenue alongside commentary that Broadcom carries a high level of debt, so profitability is strong while leverage is flagged as a financial risk factor.
- Critics with a bearish tilt focus on this leverage and customer concentration, and they read the same earnings and margin figures with a different lens:
- Bears argue that the heavy dependence on a small set of AI customers means that even with trailing EPS at US$6.19 and a net margin of 38.8%, earnings could be pressured if those customers slow orders or shift designs in house.
- They also highlight that debt funded acquisitions, such as the VMware deal referenced in the narratives, sit behind part of the earnings profile, so they see the strong US$9.3b Q2 2026 net income as needing to be viewed alongside the higher financial obligations that come with that expansion.
Readers who are more cautious tend to focus on that combination of high profitability and high leverage rather than the income line alone when weighing how resilient these results may be in different market conditions. 🐻 Broadcom Bear Case
Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Broadcom on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
With sentiment split between strong profitability and the highlighted risks, it makes sense to review the numbers yourself and decide where you stand. If you want a clearer picture of both sides, take a closer look at the 4 key rewards and 2 important warning signs
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Broadcom's reliance on a concentrated set of AI customers and a high debt load stands out as a potential weak spot in an otherwise profitable story.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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