Earnings Call Intelligence Subscribe
Home › Call Sheets › AVGO › Q2'26
Call sheet · Q2'26

Broadcom (AVGO)

Q2'26 earnings call · held June 3, 2026 · compared with the Q1'26 call · management-credibility review
9/12
Disclosure score
4 medium, 2 low flags
Financial quality
Bottom line
The sleeper story everyone's missing: networking is becoming more strategic than custom chips with 40% AI revenue share and Tomahawk 6 monopoly position, but Hock just guided this back down to 30% suggesting XPU ramps will dilute the mix. The obvious AI revenue explosion is real at $10.8B up 143%, but the binding constraint is inventory management with $30B bookings creating massive working capital needs and over-ordering risk. Hock's quote 'demand is simply insatiable' sounds great until you realize they're building 86 days of inventory vs 58 days last quarter because customers are panic-ordering capacity 18 months out. My view changes if inventory days stabilize below 75 and they provide customer-specific termination risk disclosure.

The 30-second version

  • Networking is becoming the tail wagging the dog in AI
  • AI bookings of $30B vs $10.8B shipped signals massive inventory build
  • VMware acceleration to 31% YoY growth hides integration execution risk

What changed this quarter

MetricQ1'26Q2'26Change
Total Revenue$19.3B (+29% YoY)$22.2B (+48% YoY)+1900 bps acceleration
AI Semiconductor Revenue$8.4B (+106% YoY)$10.8B (+143% YoY)+3700 bps acceleration
AI Networking as % of AI Revenue33%40%+700 bps mix shift
Non-AI Semiconductor Revenue$4.1B (flat YoY)$4.2B (+6% YoY)Cyclical recovery emerging
Infrastructure Software Revenue$6.8B (+1% YoY)$7.2B (+9% YoY)+800 bps acceleration
VMware ARR Growth19% YoY17% YoY-200 bps deceleration
Operating Margin66.4%67.3%+90 bps improvement
Free Cash Flow$8.0B (41% of revenue)$10.3B (46% of revenue)+500 bps conversion improvement
Days Inventory68 days86 days+18 days buildup
AI BookingsNot disclosed$30B in quarter2.8x quarterly shipments

Accountability tracked

8 new promises made4 narrative shifts flagged7 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
Read the full AVGO Q2'26 report Subscribe
About Research ↗Call SheetsCredibility IndexMissed PromisesScreens13F BooksData & InstitutionalPrivacyTermsSubscribe
This is a free preview. The full write-up and promise ledger are published to subscribers on Substack.
Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

Follow what management promises next

Get free previews of our earnings-call research: the key changes, management scores, and questions worth investigating. Subscribe for full call sheets and deeper analysis.

Subscriptions are managed by Substack. If the form does not load, subscribe directly. Or follow the RSS feed.