Broadcom (AVGO) official guidance

In Q4, we expect capital expenditures of $1.4 billion as we invest in capacity for semiconductors.

Starting with the 1 GW of Ironwood we are deploying in 2026, we expect Anthropic to deploy another 5 GW of TPU v8i in 2027.

Across these three generations, we have line of sight to deploying 3 GW through 2028.

For OpenAI, Jalapeño is on track for the planned deployment of 1.3 GW in 2027.

In 2028, we have line of sight for OpenAI to deploy over 5 GW of Jalapeño and its successor generation of XPU, which would make OpenAI our second-largest XPU customer.

In June, we established the AI XPV Platform in partnership with Apollo and Blackstone to enable more than 20 GW of compute infrastructure for OpenAI and Anthropic by the end of 2028.

Starting with the 1 GW of Ironwood we are deploying in 2026, we expect Anthropic to deploy another 5 GW of TPU v8i in 2027.

In 2028, we have clear line of sight to deliver an incremental 10 GW, even as we expect Google to grow for us.

We expect the Q4 non-GAAP diluted share count to be approximately 4.94 billion shares, excluding the impact of potential share repurchases.

We expect the non-GAAP tax rate for Q4 and fiscal year 2026 rate to be approximately 16% due to the impact of the global minimum tax and the geographic mix of income compared to that of fiscal year 2025.

We expect the non-GAAP tax rate for Q4 and fiscal year 2026 rate to be approximately 16% due to the impact of the global minimum tax and the geographic mix of income compared to that of fiscal year 2025.

As a result, I have to say, we are very much on target to exceed $30 in earnings per share in fiscal 2028.

As the proportion of AI revenue accelerates in Q4, we expect our Q4 consolidated gross margin to be approximately 73%, down from 78% a year ago.

Regardless, we expect Q4 operating margin to be approximately 66%, flat from a year ago, because our strong revenue growth drives substantial operating leverage.

Based on this Q4 guidance, I should say, we expect our fiscal 2026 AI revenue to be $58 billion for the year, up 186% year upon year, and above our prior guidance of $56 million.

In 2027, we have secured the supply to again double AI revenue to approximately $115 billion.

In 2028, we expect the trajectory of growth to continue. We have line of sight for fiscal 2028 AI semiconductor revenue growth to again double to $230 billion.

Within this, we expect Q4 AI semiconductor revenue of $21.7 billion, up over 236% year-on-year.

We expect Q4 infrastructure software revenue of approximately $8.7 billion, up 25% year-on-year.

In Q4, we forecast non-AI semiconductor revenue to be approximately $4.3 billion, again up 5% sequentially.

We forecast semiconductor revenue of approximately $26.1 billion, up 136% year-on-year.

To sum it all, for Q4 2026, we expect consolidated revenue to grow to $34.8 billion, up 93% year-on-year.

•Fourth quarter non-GAAP operating income guidance of approximately 66 percent of projected revenue.

In April, we entered into an agreement to enable Anthropic to access another five gigawatts of next-generation TPU-based compute beginning in 2027.

For 2027, we indicated about 10 GW shipment in 2027. That's still very much intact. We're planning to ship 10 GW in 2027, and nothing has changed.

2028, we expect a lot more gigawatts.

To deliver this vision, we are creating the AI XPU platform with Apollo and Blackstone and other leading investors to deploy more than 20 GW of compute capacity through 2028.

In Q3, we expect the non-GAAP diluted share count to be approximately 4.94 billion shares, excluding the impact of potential share repurchases.

We expect operating margin to be stable at approximately 67% of revenue, and adjusted EBITDA to be at approximately 68% of revenue.

We expect the non-GAAP tax rate for Q3 in fiscal year 2026 to be approximately 16% due to the impact of the global minimum tax and the geographic mix of income compared to that of fiscal year 2025.

As the proportion of AI revenue significantly grows in Q3, we expect Q3 consolidated gross margin to be down to approximately 74%.

Regardless of the impact to gross margin, we expect Q3 operating margin to be 67%, which is flat quarter-over-quarter, demonstrating our strong operating leverage.

Consistent with this trend in Q3, we expect AI semiconductor revenue to accelerate to $16 billion, up over 200% year-on-year.

For Q3, we forecast software revenue to be approximately $8.9 billion, up 31% year-over-year.

Consistent with this trend in Q3, we forecast non-AI semiconductor revenue to be approximately $4.5 billion, up 12% from a year ago.

In summary, we expect Q3 semiconductor revenue to be $20.5 billion, up 124% year-over-year.

We expect AI semiconductor revenue growth to continue in fiscal 2028, based on the following initiatives with our six core customers.

In the second half of 2026, we expect AI semiconductor revenue to double from the first half we shipped this year.

•Third quarter non-GAAP operating income guidance of approximately 67 percent of projected revenue;

In Q2, we expect the non-GAAP diluted share count to be approximately 4.94 billion shares, excluding the impact of potential share repurchases.

In summary, let me put it all together for Q2 2026, we expect consolidated revenue growth to accelerate to 47% year-on-year and reach approximately $22 billion. We expect adjusted EBITDA to be approximately 68% of revenue.

We expect the non-GAAP tax rate for Q2 in fiscal year 2026 to be approximately 16.5% due to the impact of the global minimum tax and the geographic mix of income compared to that of fiscal year 2025.

For your modeling purposes, we expect consolidated gross margin to be flat sequentially at 77%.

Now, to clarify your first part, Blayne, when I say we forecast, we have a line of sight that our revenue in 2027 will be significantly in excess of $100 billion, I'm focusing on the fact that these are pretty much all based on chips.

Within this, we expect Q2 AI semiconductor revenue of $10.7 billion, up approximately 140% year-on-year.

For Q2, we forecast Infrastructure Software revenue to be approximately $7.2 billion, up 9% year-on-year.

In Q2, we forecast non-AI semiconductor revenue to be approximately $4.1 billion, up 4% from a year ago.

Looking ahead to next quarter, Q2 2026, we're guiding for consolidated revenue of approximately $22 billion, which represents 47% year-on-year growth.

| Weighted-average shares used in per share calculation - diluted on GAAP basis | 4,875 |

In Q1, we expect the non-GAAP diluted share count to be approximately 4.97 billion shares, excluding the potential impact of any share repurchases.

This implies our fiscal 2026 annual common stock dividend to be a record $2.60 per share, an increase of 10% year-on-year.

Aligned with our ability to generate increased cash flows in the preceding year, we are announcing an increase in our quarterly common stock cash dividend in Q1 fiscal 2026 to $0.65 per share, an increase of 10% from the prior quarter.

And we expect adjusted EBITDA to be approximately 67% of revenue.

We expect the non-GAAP tax rate for Q1 and fiscal year 2026 to increase from 14% to approximately 16.5% due to the impact of the global minimum tax and shift in geographic mix of income compared to that of fiscal year 2025.

For your modeling purposes, we expect Q1 consolidated gross margin to be down approximately 100 basis points sequentially, primarily reflecting a higher mix of AI revenue.

Within this, we expect Q1 AI Semiconductor revenue of $8.2 billion, up approximately 100% year-on-year.

We expect renewals to be seasonal in Q1 and forecast Infrastructure Software revenue to be approximately $6.8 billion.

Accordingly, in Q1, we forecast non-AI Semiconductor revenue to be approximately $4.1 billion, flat from a year ago, down sequentially due to wireless seasonality.

We forecast Semiconductor revenue of approximately $12.3 billion, up 50% year-on-year.

And for Q1 2026, we expect consolidated revenue of approximately $19.1 billion, up 28% year-on-year.

We still expect, however, that for fiscal 2026, Infrastructure Software revenue to grow low double-digit percentage.

| Weighted-average shares used in per share calculation - diluted on GAAP basis | 4,902 |