Broadcom Inc. stock research
FY2026 Q1
Broadcom (AVGO) Gross Margin — Quarter Ended Feb 1, 2026
During the quarter, the company generated a higher revenue and a correspondingly higher gross profit, while the cost of revenue also increased. The gross margin remained broadly stable compared to both the immediately preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Feb 1, 2026 · FY2026 Q1
During the quarter, the company generated a higher revenue and a correspondingly higher gross profit, while the cost of revenue also increased. The gross margin remained broadly stable compared to both the immediately preceding quarter and the same quarter one year earlier.
- The primary observable driver of gross margin was the proportional changes in revenue and cost of revenue, as the gross margin percentage remained largely unchanged despite absolute increases in all three financial metrics.
- Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, while gross margin was slightly higher. Compared with the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, while gross margin was slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.1%
Gross profit
$13.2B
Revenue
$19.3B
Cost of revenue
$6.2B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+0.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| May 4, 2025 | $15.0B | $10.2B | $4.8B | 68.0% |
| Aug 3, 2025 | $16.0B | $10.7B | $5.2B | 67.1% |
| Nov 2, 2025 | $18.0B | $12.2B | $5.8B | 68.0% |
| Feb 1, 2026 | $19.3B | $13.2B | $6.2B | 68.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 2, 2025
+0.1 pts
Year-over-year change
Feb 2, 2025
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of gross margin was the proportional changes in revenue and cost of revenue, as the gross margin percentage remained largely unchanged despite absolute increases in all three financial metrics.
Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, while gross margin was slightly higher. Compared with the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, while gross margin was slightly higher.
Monitor the trend in the cost of revenue relative to revenue to see if the recent stability in gross margin persists over upcoming quarters.