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Broadcom Posts Record AI Sales, Adds $10 Billion Buyback, and Wins $970 Million DISA Deal

The updates highlight a push toward custom AI hardware paired with long-term software contracts.

Overview

  • In Q1 fiscal 2026, Broadcom reported $19.3 billion in revenue as AI semiconductor sales jumped to $8.4 billion.
  • Management returned $10.9 billion to shareholders in the quarter and secured board approval for an extra $10 billion in repurchases through 2026.
  • The company guided next quarter revenue to about $22 billion and said it sees a path to more than $100 billion in AI chip revenue by 2027, which remains a target rather than a commitment.
  • A five-year, $970 million agreement with the Defense Information Systems Agency will streamline purchases of VMware Cloud Foundation and related tools for DoD units such as the Air Force and Space Force.
  • The DISA pact promotes a unified private cloud with tighter security and lower ownership costs, which can help agencies run traditional systems and speed up AI model deployment.