Broadcom Inc.
AVGOFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$19.3B
Q1 FY2026
TTM ROIC
19.5%
FY2025 · FCF / Total Invested Capital (Equity + Net Debt) · WACC ~9.2% · Moat spread +10.3pp
Financial Snapshot
ticker: AVGO step: 04 generated: 2026-05-11 source: quick-research
Broadcom Inc. (AVGO) — Financial Snapshot
Note: Broadcom uses a November fiscal year end. "FY2025" below = fiscal year ended Nov 2, 2025.
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $35.8B | $51.6B | $64.0B | +24% |
| Gross Margin (adj) | 73.6% | 75.3% | 78.0% | +2.7pp |
| Operating Margin (adj) | 60.0% | 60.8% | 64.5% | +3.7pp |
| Net Income (adj) | $19.4B | $23.7B | $32.1B | +35% |
| EPS (adj, diluted) | $4.21 | $4.87 | $6.50 | +33% |
| Adj. EBITDA | $24.0B | $31.9B | $43.0B | +35% |
| Adj. EBITDA Margin | 67% | 62% | 68% |
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$28.5B |
| Capital Expenditures | ~($1.6B) |
| Free Cash Flow | ~$26.9B |
| FCF Margin | ~42% |
| Cash & Equivalents | ~$10B |
| Total Debt | ~$70B (heavily reduced from $80B+ post-VMware) |
| Dividend (annual) | ~$8.4B |
Key Ratios (approximate, May 2026)
- P/E (forward): ~40x | EV/Sales: ~25x | FCF Yield: ~1.8%
- Revenue Growth (TTM): ~30%+ (AI segment growing 100%+)
- AI Semiconductor Revenue: $20B (FY25) → trending toward $30B+ in FY26 → management target $100B by FY27
Growth Profile
Broadcom is in a structural growth phase driven by hyperscaler custom AI silicon. Q1 FY2026 revenue reached $19.3B with AI semis up 106% YoY. The bull thesis: AI semis grow from $20B FY25 → potentially $100B by FY27 based on management's stated target; combined with VMware subscription transition (lifting software margins), this could drive 30%+ revenue growth and 70%+ adj. EBITDA margins for multiple years.
Forward Estimates
- Q1 FY26 (Feb-Apr 2026): $19.3B revenue actual; AI semis $8.4B (+106%)
- FY2026E Revenue: ~$78B (consensus, +22%)
- FY2026E EPS: ~$8.20 (consensus, +26%)
- FY2027E Revenue: ~$98B (highly variable — management's $100B AI target is the swing factor)
- FY2027E EPS: ~$10.50
Capital Allocation
Heavy dividend payer (~$8.4B annual); modest buybacks; ongoing deleveraging post-VMware acquisition. Net debt of ~$60B is steadily declining with $26.9B FCF base.
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $AVGO.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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