Infrastructure SoftwareWide moat

Broadcom (AVGO) — moat facet

The headline says 29% and the recurring billings say 11%; the difference is the accounting of a licence conversion that will annualise.

Broadcom's infrastructure software segment sold $8,752 million in the quarter to 2 August 2026 and earned $7,325 million of operating income on it1 — 83.7 cents on the dollar2, the highest margin of anything the company owns and comfortably above the AI semiconductor business everybody watches. It is less than a third of revenue and more than a third of what the two segments earn. That is the whole reason this line exists as a strategy rather than an accident.

Infrastructure software segment costs, Q3 FY2025 against Q3 FY2026 ($M)$627R&D 25$545R&D 26$456SG&A 25$374SG&A 26$465Cost of rev 25$508Cost of rev 26Broadcom Form 10-Q, quarter ended 2 August 2026, segment table
Revenue grew 29% while engineering and selling costs fell in absolute terms; only the cost of actually serving customers rose.

None of it was built. The segment covers private cloud, mainframe software, cybersecurity, enterprise software and the Fibre Channel storage-networking business3, and it did not exist before fiscal 2018, when Brocade's storage networking produced its first $1,780 million4. CA and then Symantec's enterprise arm took it to $5,156 million in fiscal 2019 and $6,621 million in fiscal 202056. Then it stopped: $7,067 million, $7,385 million and $7,637 million across the next three years7, which is 15% of growth in three years8 for a business sold as an annuity.

VMware changed the scale and nothing else about the model. Broadcom completed that acquisition in November 2023 for $86,290 million of total consideration, including 544 million shares9 — the largest thing it has ever bought — and the software line tripled in a single year, from $7,637 million to $21,478 million, then $27,029 million in fiscal 202510. Every dollar of the segment's scale was purchased, in four transactions over six years, which is why the question that matters here is retention rather than sales. It is also sold through other people: VMware Cloud Foundation reaches customers “directly from Broadcom, resellers and distributors, hyperscale cloud providers, value-added OEMs” and cloud service providers11, so the renewal conversation is frequently held by a partner rather than by Broadcom.

The billing model is in transition, and it flatters the headline. Broadcom attributes fiscal 2025's software growth to VMware Cloud Foundation, "including license revenue recognized on contracts where customers do not have the right to terminate and the transition to a subscription license model"12 — that is, revenue recognised up front when a customer signs a non-cancellable contract, not cash arriving evenly over the term. The check is one line further down the income statement: Broadcom's subscriptions and services revenue, where recurring software billings are reported, grew 11% in the quarter, to $5,312 million from $4,779 million, while product revenue grew 117%13. The segment reported 29%. The difference between 29% and 11% is the accounting of the conversion, and it will annualise.

The margin, by contrast, is real, and most of it was cut rather than grown. Segment operating income went from $13,977 million in fiscal 2024, the first full year with VMware, to $20,765 million in fiscal 202514 — margins of 65.1% and 76.8%15 — and $18,295 million in the first nine months of fiscal 202616. Over the same period the costs fell in absolute terms: software research and development was $545 million in the latest quarter against $627 million a year earlier, and selling, general and administrative $374 million against $456 million17. Over nine months the same pattern holds, research and development at $1,723 million against $1,944 million18. A segment growing 29% while spending less on engineering and sales than it did a year ago is being run for cash, deliberately and successfully — and the one cost line that did rise, cost of revenue at $508 million against $465 million19, is the part that scales with customers actually using the software.

That it can be run that way is the moat and the exposure in one sentence. The customers are enterprises whose virtualisation estates cannot be moved in a budget cycle, which is why the repricing has held; the argument about how far that can be pushed, and what customers have done about it, belongs to the root threat on captive pricing and the page on Nutanix, and is not re-run here.

Watch the recurring line, not the segment line. Subscriptions and services growing at 11%20 is what this business looks like once the licence recognition is stripped out, and it is the number that says whether Broadcom bought an annuity that compounds or one that is being harvested. If that figure accelerates into fiscal 2027 as VMware customers renew a second time at the new prices, the 84% margin is a durable property of the franchise. If it does not, the software segment is a $21 billion recurring business wearing a $30 billion revenue line, and the difference will show up the year the conversions run out.

Moat trajectory: Holding steady

Margin has gone 65.1% to 83.7% in two years, but the recurring subscriptions and services line grew 11% in the latest quarter. A business harvesting price while its billings grow in single digits is holding its position, not extending it.

The number that tests this moat
Reported
Subscriptions and services revenue, latest quarter
$5,312M in Q3 FY2026, up 11% from $4,779M

Segment revenue grew 29% because non-cancellable licences are recognised up front. This line is what the software business collects year after year, and 11% is the honest growth rate to beat.

Source: Broadcom Form 10-Q, quarter ended 2 August 2026 ↗
References
  1. ReportedBroadcom's infrastructure software segment sold $8,752 million in the quarter to 2 August 2026 and earned $7,325 million of operating income on it — 83.7 cents on the dollar, the highest margin of anything the company owns and comfortably above the AI semiconductor business everybody watches.
    Broadcom Inc., Form 10-Q for the quarter ended 2 August 2026 - remaining performance obligations approximately $179.2 billion, including a long-term contract for custom AI accelerators entered in the quarter ended 3 May 2026, about 25% expected within 12 months; one semiconductor customer, a distributor, 50% of net revenue in the quarter (32% a year earlier) and top five end customers about 55%; distributors 56% of net revenue for three quarters; purchase commitments $126,821M ($52,674M for fiscal 2027, $72,952M for fiscal 2028); operating income $15,955M (54% of revenue) against $5,887M (37%); infrastructure software revenue $8,752M (+29%) and operating income $7,325M (+40%), attributed to VMware Cloud Foundation including additional license revenue; subscriptions and services revenue $5,312M against $4,779M, products $24,279M against $11,173M — Quarter ended 2 August 2026 · publ. 2026-09-10 · source ↗
  2. Moat Explorer calcBroadcom's infrastructure software segment sold $8,752 million in the quarter to 2 August 2026 and earned $7,325 million of operating income on it — 83.7 cents on the dollar, the highest margin of anything the company owns and comfortably above the AI semiconductor business everybody watches.
    Moat Explorer calculation from Broadcom's Forms 10-K and its Form 10-Q for the quarter ended 2 August 2026: segment operating margins $21,232M/$36,858M = 57.6% and $20,765M/$27,029M = 76.8% for fiscal 2025, $12,770M/$20,839M = 61.3% and $7,325M/$8,752M = 83.7% for the quarter, $8,576M/$17,267M = 49.7% for fiscal 2020, $16,486M/$28,182M = 58.5% for fiscal 2023 and $13,977M/$21,478M = 65.1% for fiscal 2024; semiconductor revenue excluding AI $20,839M - $16,700M = about $4.1B, against about $4.0-4.2B in each of the six preceding quarters; combined segment operating income for the nine months $29,554M + $18,295M = $47,849M; infrastructure software revenue growth $7,637M/$6,621M = 15% over three fiscal years; cumulative segment operating income fiscal 2019 to 2025 $97,254M for semiconductors and $58,680M for software — Fiscal 2019 to the quarter ended 2 August 2026 · publ. 2026-09-22 · source ↗
    Method: Moat Explorer calculation from Broadcom's Forms 10-K FY2019, FY2021, FY2023 and FY2025 and its Form 10-Q for the quarter ended 2 August 2026; operands are in the source line.
  3. ReportedThe segment covers private cloud, mainframe software, cybersecurity, enterprise software and the Fibre Channel storage-networking business, and it did not exist before fiscal 2018, when Brocade's storage networking produced its first $1,780 million.
    Broadcom Inc., Form 10-K FY2025 - segment note and MD&A: semiconductor solutions net revenue $36,858M and infrastructure software $27,029M; segment operating income $21,232M and $20,765M; products $44,847M and subscriptions and services $19,040M, with products of $33,596M sold in Asia Pacific and subscriptions and services of $11,031M in the Americas; segment descriptions (custom accelerators or XPUs, Ethernet switching and routing silicon, Ethernet NICs, physical layer devices and optical components, racks and systems; private cloud, mainframe, cybersecurity, enterprise software and the FC SAN business); five major end markets; the warning that selling or leasing AI racks will likely increase operating margin but compress or lower future gross margin; VMware Cloud Foundation distribution; net property, plant and equipment $2,530M against total assets $171,092M; one semiconductor solutions customer, a distributor, 32% of net revenue for fiscal 2025 and 28% for fiscal 2024 — Fiscal year ended 2 November 2025 · publ. 2025-12-12 · source ↗
  4. ReportedThe segment covers private cloud, mainframe software, cybersecurity, enterprise software and the Fibre Channel storage-networking business, and it did not exist before fiscal 2018, when Brocade's storage networking produced its first $1,780 million.
    Broadcom Inc., Form 10-K FY2019 - three reportable segments before fiscal 2020: semiconductor solutions net revenue $17,368M, $18,934M and $17,491M, infrastructure software $5,156M, $1,780M and nil, and IP licensing $73M, $134M and $145M for fiscal years 2019, 2018 and 2017; semiconductor solutions revenue fell 8% in fiscal 2019; two reportable segments from the fiscal year ending 1 November 2020 — Fiscal year ended 3 November 2019 · publ. 2019-12-20 · source ↗
  5. ReportedCA and then Symantec's enterprise arm took it to $5,156 million in fiscal 2019 and $6,621 million in fiscal 2020.
    Broadcom Inc., Form 10-K FY2019 - three reportable segments before fiscal 2020: semiconductor solutions net revenue $17,368M, $18,934M and $17,491M, infrastructure software $5,156M, $1,780M and nil, and IP licensing $73M, $134M and $145M for fiscal years 2019, 2018 and 2017; semiconductor solutions revenue fell 8% in fiscal 2019; two reportable segments from the fiscal year ending 1 November 2020 — Fiscal year ended 3 November 2019 · publ. 2019-12-20 · source ↗
  6. ReportedCA and then Symantec's enterprise arm took it to $5,156 million in fiscal 2019 and $6,621 million in fiscal 2020.
    Broadcom Inc., Form 10-K FY2021 - segment note on the recast two-segment basis: semiconductor solutions net revenue $20,383M, $17,267M and $17,441M and infrastructure software $7,067M, $6,621M and $5,156M for fiscal years 2021, 2020 and 2019; segment operating income $10,976M, $8,576M and $8,538M, and $4,936M, $4,363M and $3,391M — Fiscal year ended 31 October 2021 · publ. 2021-12-17 · source ↗
  7. ReportedThen it stopped: $7,067 million, $7,385 million and $7,637 million across the next three years, which is 15% of growth in three years for a business sold as an annuity.
    Broadcom Inc., Form 10-K FY2023 - segment note: net revenue of $28,182M, $25,818M and $20,383M from semiconductor solutions and $7,637M, $7,385M and $7,067M from infrastructure software for fiscal years 2023, 2022 and 2021; segment operating income $16,486M, $15,075M and $10,976M, and $5,639M, $5,219M and $4,936M — Fiscal year ended 29 October 2023 · publ. 2023-12-14 · source ↗
  8. Moat Explorer calcThen it stopped: $7,067 million, $7,385 million and $7,637 million across the next three years, which is 15% of growth in three years for a business sold as an annuity.
    Moat Explorer calculation from Broadcom's Forms 10-K and its Form 10-Q for the quarter ended 2 August 2026: segment operating margins $21,232M/$36,858M = 57.6% and $20,765M/$27,029M = 76.8% for fiscal 2025, $12,770M/$20,839M = 61.3% and $7,325M/$8,752M = 83.7% for the quarter, $8,576M/$17,267M = 49.7% for fiscal 2020, $16,486M/$28,182M = 58.5% for fiscal 2023 and $13,977M/$21,478M = 65.1% for fiscal 2024; semiconductor revenue excluding AI $20,839M - $16,700M = about $4.1B, against about $4.0-4.2B in each of the six preceding quarters; combined segment operating income for the nine months $29,554M + $18,295M = $47,849M; infrastructure software revenue growth $7,637M/$6,621M = 15% over three fiscal years; cumulative segment operating income fiscal 2019 to 2025 $97,254M for semiconductors and $58,680M for software — Fiscal 2019 to the quarter ended 2 August 2026 · publ. 2026-09-22 · source ↗
    Method: Moat Explorer calculation from Broadcom's Forms 10-K FY2019, FY2021, FY2023 and FY2025 and its Form 10-Q for the quarter ended 2 August 2026; operands are in the source line.
  9. ReportedBroadcom completed that acquisition in November 2023 for $86,290 million of total consideration, including 544 million shares — the largest thing it has ever bought — and the software line tripled in a single year, from $7,637 million to $21,478 million, then $27,029 million in fiscal 2025.
    Broadcom Inc., Form 10-K FY2024 - on 22 November 2023 the Company completed the acquisition of VMware for total consideration of $86,290 million, including 544 million shares of common stock (split-adjusted) with a fair value of $53.4 billion; $45,572 million of intangible assets acquired — Fiscal year ended 3 November 2024 · publ. 2024-12-20 · source ↗
  10. ReportedBroadcom completed that acquisition in November 2023 for $86,290 million of total consideration, including 544 million shares — the largest thing it has ever bought — and the software line tripled in a single year, from $7,637 million to $21,478 million, then $27,029 million in fiscal 2025.
    Broadcom Inc., Form 10-K FY2025 - segment note and MD&A: semiconductor solutions net revenue $36,858M and infrastructure software $27,029M; segment operating income $21,232M and $20,765M; products $44,847M and subscriptions and services $19,040M, with products of $33,596M sold in Asia Pacific and subscriptions and services of $11,031M in the Americas; segment descriptions (custom accelerators or XPUs, Ethernet switching and routing silicon, Ethernet NICs, physical layer devices and optical components, racks and systems; private cloud, mainframe, cybersecurity, enterprise software and the FC SAN business); five major end markets; the warning that selling or leasing AI racks will likely increase operating margin but compress or lower future gross margin; VMware Cloud Foundation distribution; net property, plant and equipment $2,530M against total assets $171,092M; one semiconductor solutions customer, a distributor, 32% of net revenue for fiscal 2025 and 28% for fiscal 2024 — Fiscal year ended 2 November 2025 · publ. 2025-12-12 · source ↗
  11. ReportedIt is also sold through other people: VMware Cloud Foundation reaches customers “directly from Broadcom, resellers and distributors, hyperscale cloud providers, value-added OEMs” and cloud service providers, so the renewal conversation is frequently held by a partner rather than by Broadcom.
    Broadcom Inc., Form 10-K FY2025 - segment note and MD&A: semiconductor solutions net revenue $36,858M and infrastructure software $27,029M; segment operating income $21,232M and $20,765M; products $44,847M and subscriptions and services $19,040M, with products of $33,596M sold in Asia Pacific and subscriptions and services of $11,031M in the Americas; segment descriptions (custom accelerators or XPUs, Ethernet switching and routing silicon, Ethernet NICs, physical layer devices and optical components, racks and systems; private cloud, mainframe, cybersecurity, enterprise software and the FC SAN business); five major end markets; the warning that selling or leasing AI racks will likely increase operating margin but compress or lower future gross margin; VMware Cloud Foundation distribution; net property, plant and equipment $2,530M against total assets $171,092M; one semiconductor solutions customer, a distributor, 32% of net revenue for fiscal 2025 and 28% for fiscal 2024 — Fiscal year ended 2 November 2025 · publ. 2025-12-12 · source ↗
  12. ReportedBroadcom attributes fiscal 2025's software growth to VMware Cloud Foundation, "including license revenue recognized on contracts where customers do not have the right to terminate and the transition to a subscription license model" — that is, revenue recognised up front when a customer signs a non-cancellable contract, not cash arriving evenly over the term.
    Broadcom Inc., Form 10-K FY2025 - segment note and MD&A: semiconductor solutions net revenue $36,858M and infrastructure software $27,029M; segment operating income $21,232M and $20,765M; products $44,847M and subscriptions and services $19,040M, with products of $33,596M sold in Asia Pacific and subscriptions and services of $11,031M in the Americas; segment descriptions (custom accelerators or XPUs, Ethernet switching and routing silicon, Ethernet NICs, physical layer devices and optical components, racks and systems; private cloud, mainframe, cybersecurity, enterprise software and the FC SAN business); five major end markets; the warning that selling or leasing AI racks will likely increase operating margin but compress or lower future gross margin; VMware Cloud Foundation distribution; net property, plant and equipment $2,530M against total assets $171,092M; one semiconductor solutions customer, a distributor, 32% of net revenue for fiscal 2025 and 28% for fiscal 2024 — Fiscal year ended 2 November 2025 · publ. 2025-12-12 · source ↗
  13. ReportedThe check is one line further down the income statement: Broadcom's subscriptions and services revenue, where recurring software billings are reported, grew 11% in the quarter, to $5,312 million from $4,779 million, while product revenue grew 117%.
    Broadcom Inc., Form 10-Q for the quarter ended 2 August 2026 - remaining performance obligations approximately $179.2 billion, including a long-term contract for custom AI accelerators entered in the quarter ended 3 May 2026, about 25% expected within 12 months; one semiconductor customer, a distributor, 50% of net revenue in the quarter (32% a year earlier) and top five end customers about 55%; distributors 56% of net revenue for three quarters; purchase commitments $126,821M ($52,674M for fiscal 2027, $72,952M for fiscal 2028); operating income $15,955M (54% of revenue) against $5,887M (37%); infrastructure software revenue $8,752M (+29%) and operating income $7,325M (+40%), attributed to VMware Cloud Foundation including additional license revenue; subscriptions and services revenue $5,312M against $4,779M, products $24,279M against $11,173M — Quarter ended 2 August 2026 · publ. 2026-09-10 · source ↗
  14. ReportedSegment operating income went from $13,977 million in fiscal 2024, the first full year with VMware, to $20,765 million in fiscal 2025 — margins of 65.1% and 76.8% — and $18,295 million in the first nine months of fiscal 2026.
    Broadcom Inc., Form 10-K FY2025 - segment note and MD&A: semiconductor solutions net revenue $36,858M and infrastructure software $27,029M; segment operating income $21,232M and $20,765M; products $44,847M and subscriptions and services $19,040M, with products of $33,596M sold in Asia Pacific and subscriptions and services of $11,031M in the Americas; segment descriptions (custom accelerators or XPUs, Ethernet switching and routing silicon, Ethernet NICs, physical layer devices and optical components, racks and systems; private cloud, mainframe, cybersecurity, enterprise software and the FC SAN business); five major end markets; the warning that selling or leasing AI racks will likely increase operating margin but compress or lower future gross margin; VMware Cloud Foundation distribution; net property, plant and equipment $2,530M against total assets $171,092M; one semiconductor solutions customer, a distributor, 32% of net revenue for fiscal 2025 and 28% for fiscal 2024 — Fiscal year ended 2 November 2025 · publ. 2025-12-12 · source ↗
  15. Moat Explorer calcSegment operating income went from $13,977 million in fiscal 2024, the first full year with VMware, to $20,765 million in fiscal 2025 — margins of 65.1% and 76.8% — and $18,295 million in the first nine months of fiscal 2026.
    Moat Explorer calculation from Broadcom's Forms 10-K and its Form 10-Q for the quarter ended 2 August 2026: segment operating margins $21,232M/$36,858M = 57.6% and $20,765M/$27,029M = 76.8% for fiscal 2025, $12,770M/$20,839M = 61.3% and $7,325M/$8,752M = 83.7% for the quarter, $8,576M/$17,267M = 49.7% for fiscal 2020, $16,486M/$28,182M = 58.5% for fiscal 2023 and $13,977M/$21,478M = 65.1% for fiscal 2024; semiconductor revenue excluding AI $20,839M - $16,700M = about $4.1B, against about $4.0-4.2B in each of the six preceding quarters; combined segment operating income for the nine months $29,554M + $18,295M = $47,849M; infrastructure software revenue growth $7,637M/$6,621M = 15% over three fiscal years; cumulative segment operating income fiscal 2019 to 2025 $97,254M for semiconductors and $58,680M for software — Fiscal 2019 to the quarter ended 2 August 2026 · publ. 2026-09-22 · source ↗
    Method: Moat Explorer calculation from Broadcom's Forms 10-K FY2019, FY2021, FY2023 and FY2025 and its Form 10-Q for the quarter ended 2 August 2026; operands are in the source line.
  16. ReportedSegment operating income went from $13,977 million in fiscal 2024, the first full year with VMware, to $20,765 million in fiscal 2025 — margins of 65.1% and 76.8% — and $18,295 million in the first nine months of fiscal 2026.
    Broadcom Inc., Form 10-Q for the quarter ended 2 August 2026 - remaining performance obligations approximately $179.2 billion, including a long-term contract for custom AI accelerators entered in the quarter ended 3 May 2026, about 25% expected within 12 months; one semiconductor customer, a distributor, 50% of net revenue in the quarter (32% a year earlier) and top five end customers about 55%; distributors 56% of net revenue for three quarters; purchase commitments $126,821M ($52,674M for fiscal 2027, $72,952M for fiscal 2028); operating income $15,955M (54% of revenue) against $5,887M (37%); infrastructure software revenue $8,752M (+29%) and operating income $7,325M (+40%), attributed to VMware Cloud Foundation including additional license revenue; subscriptions and services revenue $5,312M against $4,779M, products $24,279M against $11,173M — Quarter ended 2 August 2026 · publ. 2026-09-10 · source ↗
  17. ReportedOver the same period the costs fell in absolute terms: software research and development was $545 million in the latest quarter against $627 million a year earlier, and selling, general and administrative $374 million against $456 million.
    Broadcom Inc., Form 10-Q for the quarter ended 2 August 2026 - remaining performance obligations approximately $179.2 billion, including a long-term contract for custom AI accelerators entered in the quarter ended 3 May 2026, about 25% expected within 12 months; one semiconductor customer, a distributor, 50% of net revenue in the quarter (32% a year earlier) and top five end customers about 55%; distributors 56% of net revenue for three quarters; purchase commitments $126,821M ($52,674M for fiscal 2027, $72,952M for fiscal 2028); operating income $15,955M (54% of revenue) against $5,887M (37%); infrastructure software revenue $8,752M (+29%) and operating income $7,325M (+40%), attributed to VMware Cloud Foundation including additional license revenue; subscriptions and services revenue $5,312M against $4,779M, products $24,279M against $11,173M — Quarter ended 2 August 2026 · publ. 2026-09-10 · source ↗
  18. ReportedOver nine months the same pattern holds, research and development at $1,723 million against $1,944 million.
    Broadcom Inc., Form 10-Q for the quarter ended 2 August 2026 - remaining performance obligations approximately $179.2 billion, including a long-term contract for custom AI accelerators entered in the quarter ended 3 May 2026, about 25% expected within 12 months; one semiconductor customer, a distributor, 50% of net revenue in the quarter (32% a year earlier) and top five end customers about 55%; distributors 56% of net revenue for three quarters; purchase commitments $126,821M ($52,674M for fiscal 2027, $72,952M for fiscal 2028); operating income $15,955M (54% of revenue) against $5,887M (37%); infrastructure software revenue $8,752M (+29%) and operating income $7,325M (+40%), attributed to VMware Cloud Foundation including additional license revenue; subscriptions and services revenue $5,312M against $4,779M, products $24,279M against $11,173M — Quarter ended 2 August 2026 · publ. 2026-09-10 · source ↗
  19. ReportedA segment growing 29% while spending less on engineering and sales than it did a year ago is being run for cash, deliberately and successfully — and the one cost line that did rise, cost of revenue at $508 million against $465 million, is the part that scales with customers actually using the software.
    Broadcom Inc., Form 10-Q for the quarter ended 2 August 2026 - remaining performance obligations approximately $179.2 billion, including a long-term contract for custom AI accelerators entered in the quarter ended 3 May 2026, about 25% expected within 12 months; one semiconductor customer, a distributor, 50% of net revenue in the quarter (32% a year earlier) and top five end customers about 55%; distributors 56% of net revenue for three quarters; purchase commitments $126,821M ($52,674M for fiscal 2027, $72,952M for fiscal 2028); operating income $15,955M (54% of revenue) against $5,887M (37%); infrastructure software revenue $8,752M (+29%) and operating income $7,325M (+40%), attributed to VMware Cloud Foundation including additional license revenue; subscriptions and services revenue $5,312M against $4,779M, products $24,279M against $11,173M — Quarter ended 2 August 2026 · publ. 2026-09-10 · source ↗
  20. ReportedSubscriptions and services growing at 11% is what this business looks like once the licence recognition is stripped out, and it is the number that says whether Broadcom bought an annuity that compounds or one that is being harvested.
    Broadcom Inc., Form 10-Q for the quarter ended 2 August 2026 - remaining performance obligations approximately $179.2 billion, including a long-term contract for custom AI accelerators entered in the quarter ended 3 May 2026, about 25% expected within 12 months; one semiconductor customer, a distributor, 50% of net revenue in the quarter (32% a year earlier) and top five end customers about 55%; distributors 56% of net revenue for three quarters; purchase commitments $126,821M ($52,674M for fiscal 2027, $72,952M for fiscal 2028); operating income $15,955M (54% of revenue) against $5,887M (37%); infrastructure software revenue $8,752M (+29%) and operating income $7,325M (+40%), attributed to VMware Cloud Foundation including additional license revenue; subscriptions and services revenue $5,312M against $4,779M, products $24,279M against $11,173M — Quarter ended 2 August 2026 · publ. 2026-09-10 · source ↗
Sources
Generated September 22, 2026