Broadcom expects AI to power VMware revenue growth

“We are confident that the growth in generative and agentic AI will create the need for more VMware, not less,” CEO Hock Tan said.

Dive Brief: 

• VMware revenue grew 13% year over year and total contract value exceeded $9.2 billion during the first quarter of the 2026 fiscal year, Broadcom CEO Hock Tan said during the company’s earnings call Wednesday. 
• “We are confident that the growth in generative and agentic AI will create the need for more VMware, not less,” Tan said during the call. Broadcom, which no longer reports VMware revenue separately, saw total Q1 2026 revenue reach $19.3 billion, up 29% from the previous fiscal year. 
• VMware Cloud Foundation, the company’s private cloud offering, allows enterprises to scale generative AI workloads and functions as an essential layer between chips and AI software that “cannot be disintermediated or replaced,” Tan said. Broadcom launched an open ...