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Earnings Callsⓘ
Q3 2026September 9, 2026
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### At a Glance The quarterly results significantly exceeded expectations, primarily driven by a 221% year-over-year surge in AI semiconductor revenue and a 3.5x increase in XPU shipments, pushing total revenue to a record high.
Key Data Total revenue $29.6B, up 86% year-over-year; AI semiconductor revenue $16.7B, up 221% year-over-year; non-GAAP EPS $3.32, up 96% year-over-year.
Business Progress This quarter, the company delivered Ironwood TPU v7 to Anthropic and Google and began mass production of Google's next-generation TPU 8i, with performance comparable to the Vera Rubin GPU. Additionally, the first-generation custom accelerator Jalapeno was delivered to OpenAI, with inference performance surpassing the Grace Blackwell GPU. Meta's MTIA accelerator also entered mass production. In AI networking, Tomahawk 6 (100Tbps) is ramping rapidly, Tomahawk 7 (200Tbps) has been taped out, and Tomahawk Ultra was launched to enable Ethernet-based in-rack connectivity. The company also partnered with Apollo and Blackstone through the AI XPV platform to provide over 20GW of computing power financing for Anthropic and OpenAI.
Guidance and Outlook Q4 AI revenue guidance $21.7B, up 236% year-over-year; full-year AI revenue raised to $58B (from prior guidance of $56B). AI revenue is expected to double to $115B by 2027 and double again to $230B by 2028, with supply chain already secured.
Risk/Highlight Signals Management's tone was extremely optimistic, emphasizing that "demand far exceeds supply" and repeatedly mentioning "secured supply chain" and "accelerated customer deployment." However, it should be noted that large-scale deployment is constrained by infrastructure bottlenecks such as land, power, and enclosures, and some customers rely on external financing.