# Broadcom Inc. (AVGO) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/AVGO/thesis · /stocks/AVGO/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/AVGO/fundamental

## Navigation

- Overview: /stocks/AVGO
- Financials (this page): /stocks/AVGO/financials
- Thesis: /stocks/AVGO/thesis
- Investment Memo: /stocks/AVGO/memo
- Coverage universe: /stocks