AVGO

Broadcom Inc.

TechnologyCIK 0001730168

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Market Cap
$1.98T
P/E (TTM)
67.4x
Rev Growth (TTM)
+32.3%
Net Margin (TTM)
38.8%
FCF Yield (TTM)
1.7%
FCF Margin (TTM)
43.4%

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LATEST EARNINGS

Q1 2026
4 months ago
View source
Revenue
$19.31B
+29.0%
Net Income
$7.35B
+33.5%
EPS
$1.50
+31.6%
Gross
68.1% +0.2%
Operating
44.3% +2.4%
Net
38.0% +1.1%
  • Record first quarter revenue of $19.311 billion, up 29% year-over-year.
  • AI semiconductor revenue reached $8.4 billion, growing 106% year-over-year and exceeding forecast.
  • Adjusted EBITDA of $13.128 billion, up 30% year-over-year, representing 68% of revenue.
  • Free cash flow of $8.010 billion, up 33% year-over-year, representing 41% of revenue.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$32.8B
Q2 '26
$10.3B+28%
Q1 '26
$8.0B+7%
FCF Margin
TTM43.4%
Q2 '2646.3%+12%
Sector: 8.5%Top 10%
OCF Margin44.6%
OCF/NI1.15x
CapEx Coverage39.1x
FCF Yield1.7%
FCF Growth (2Y)+24%
Cash Conversion Cycle
51 days
DSO: 37+DIO: 40DPO: 26

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldTTM
TTM1.0%
Div Yield0.6%
+
Buyback (TTM)0.4%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)0.6%
FCF Payout Ratio35.9%
Free Cash Flow (TTM)$32.8B
Stock Repurchases (TTM)$8.4B
Capital Return / FCF61.7%
Est. Dividends Paid (TTM)$11.8B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
21.7%
Moderate
+0.1% YoY+16.7%
P25MedianP75
75th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
41.7%
8Q: 38.8%
Asset Turnover
0.44x
8Q: 0.38x
Leverage (1+D/E)
1.74x
D/E: 0.74x
DuPont: 32.3%21.7% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
29.58x
8Q:25.17x
+1243.5%
Invested Cap Turn
0.52x
8Q:0.44x
+22.0%
CapEx Intensity
0.6%
8Q:0.4%
CapEx/Depreciation
1.43x
Asset-based ROIC formula

Valuation Analysis

Fair Value
Price-to-EarningsTTM
67.4x
Volatile
8Q: 199.7x+36210%
Valuation Lenses
Earnings
67.4x
vs sector
Cash Flow
61.9x
EV/FCF vs
Growth-Adj
0.5xPEG
Undervalued for growth
Quality-Adj
3.1P/E per %ROIC
ROIC: 21.7%
Shareholder Returns
Dividend
0.6%
Buyback
0.4%
Total Yield
1.0%
Market Cap$1.98T
EV$2.03T
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
90/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 25%
37.5%
8Q:
Return on Invested Capital (ROIC)Top 25%
21.7%
8Q:
+16.7%
vs Sector:0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 41.7%
Asset Turnover: 0.44x

Earnings Quality

Cash Conversion

1.15x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin68.3%

Capital Efficiency

Invested Capital Turnover0.52x

Working Capital

Cash Conversion Cycle51 days

Growth Quality & Momentum

Quality Growth
Growth Quality Score
80/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
32.3%
OpInc Growth YoY
85.1%
EPS Growth YoY
122.8%
FCF 3Y CAGR
24.2%

Growth Quality Analysis

Sustainability Index: 7.5/10 - Highly sustainable growth

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
68.3%
Operating
43.4%
Top 25% in sector
Net
38.8%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+4.6 pts
FCF: 43.4% | Net: 38.8%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $45.28B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.74x
Balance sheet risk & solvency analysis