AVGO
Broadcom Inc.
Technology • CIK: 0001730168
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Market Cap
$1.56T
P/E (TTM)
62.6x
Rev Growth (TTM)
+25.2%
Net Margin (TTM)
36.6%
FCF Yield (TTM)
1.8%
FCF Margin (TTM)
42.3%
What Changed
10-Q Q1 2026 vs 10-Q Q3 2025
Semiconductor Solutions Segment Growth26.0% YoY→52.4% YoY
Infrastructure Software Segment Growth17.0% YoY→1.4% YoY
Revenue Classification — Upfront LicenseNo reclassification disclosed→$1,972M upfront license revenue reclassified from...
SBC as % of Revenue3.87%→3.19%
Critical Liability Findings5 items→2 items
Infrastructure software growth recovery: watch for >5% YoY in Q2 2026 to...·Revenue reclassification resolution: confirm whether $1,972M Q1 2025 restatement...·AI semiconductor revenue run rate: watch if $8.4B Q1 2026 quarterly pace...
Filing Intelligence
6.0/10
10-Q filed Mar 11, 2026 • Q1 2026
Executive Summary
Robust operating cash flow generation supports significant capital returns through dividends and share repurchases.. The company has $54 million in unconditional purchase obligations for inventory...
Key Concerns
- ●Customer concentration remains a notable risk, with one distributor accounting for a significant portion of revenue.
- ●Reclassification of $1,972 million of upfront license revenue from subscriptions and services to products revenue for the fiscal quarter...
- ●The company has $54 million in unconditional purchase obligations for inventory and other services extending through 2030 and beyond.
Key Strengths
- ●Strong performance in semiconductor solutions, driven by AI demand, is a key growth driver.
- ●Increased stock-based compensation is impacting operating expenses but reflects investment in talent.
Cash Flow Health
Free Cash Flow8/8 positive
TTM$28.9B
Q1 '26
$8.0B+7%
Q4 '26
$7.5B+6%
FCF Margin
TTM42.3%
Q1 '2641.5%
Sector: 9.0%Top 10%
OCF Margin43.5%
OCF/NI1.19x
CapEx Coverage38.4x
FCF Yield1.8%
FCF Growth (2Y)+20%
Cash Conversion Cycle
45 days
DSO: 35+DIO: 37−DPO: 26
Capital Allocation & Returns
Growth Focused
Total Shareholder YieldTTM
TTM1.4%
Div Yield0.7%
+Buyback (TTM)0.7%
Prioritizing reinvestment over distributions
Dividend & Payout Metrics
Dividend Yield (TTM)0.7%
FCF Payout Ratio39.5%
Free Cash Flow (TTM)$28.9B
Stock Repurchases (TTM)$10.3B
Capital Return / FCF75.2%
Est. Dividends Paid (TTM)$11.4B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
19.1%
Moderate
+0.1% YoY+19.9%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
40.0%
8Q: 37.4%
Asset Turnover
0.41x
8Q: 0.36x
Leverage (1+D/E)
–
Asset & CapEx Efficiency
Fixed Asset Turn
27.38x
8Q:24.15x
+1146.8%
Invested Cap Turn
0.48x
8Q:0.43x
+19.4%
CapEx Intensity
0.5%
8Q:0.4%
CapEx/Depreciation
1.33x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q1 2026 | Q4 2026 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $68.3B | $19.3B↑7.2% | $18.0B↑12.9% | $16.0B↑6.3% | $15.0B↑0.6% | $14.9B↑6.1% | $14.1B↑7.5% | $13.1B↑4.7% | $12.5B |
Operating Income | $27.8B | $8.6B↑14.1% | $7.5B↑27.5% | $5.9B↑1.0% | $5.8B↓6.9% | $6.3B↑35.3% | $4.6B↑22.1% | $3.8B↑27.8% | $3.0B |
Net Income | $25.0B | $7.3B↓13.7% | $8.5B↑105.7% | $4.1B↓16.6% | $5.0B↓9.8% | $5.5B↑27.3% | $4.3B↑330.6% | $-1.9B↓188.4% | $2.1B |
Operating Cash Flow | $29.7B | $8.3B↑7.2% | $7.7B↑7.5% | $7.2B↑9.3% | $6.6B↑7.2% | $6.1B↑9.1% | $5.6B↑12.9% | $5.0B↑8.4% | $4.6B |
Free Cash Flow | $28.9B | $8.0B↑7.3% | $7.5B↑6.3% | $7.0B↑9.6% | $6.4B↑6.6% | $6.0B↑9.7% | $5.5B↑14.4% | $4.8B↑7.7% | $4.4B |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
62.6x
Volatile
8Q: 199.1x-122421%
Valuation Lenses
Earnings
62.6x
vs – sector
Cash Flow
56.0x
EV/FCF vs –
Growth-Adj
0.4xPEG
Undervalued for growth
Quality-Adj
3.3P/E per %ROIC
ROIC: 19.1%
Shareholder Returns
Dividend
0.7%
Buyback
0.7%
Total Yield
1.4%
Market Cap$1.56T
EV$1.62T
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
84/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)
–
8Q:–
Return on Invested Capital (ROIC)Top 25%
19.1%
8Q:–
+19.9%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 40.0%
Asset Turnover: 0.41x
Earnings Quality
Cash Conversion
1.19x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin67.8%
Capital Efficiency
Invested Capital Turnover0.48x
Working Capital
Cash Conversion Cycle45 days
Growth Quality & Momentum
Quality Growth
Growth Quality Score
80/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
25.2%
OpInc Growth YoY
36.8%
EPS Growth YoY
146.6%
FCF 3Y CAGR
19.7%
Growth Quality Analysis
✓Sustainability Index: 7.5/10 - Highly sustainable growth
Margin Quality & Sustainability
Moderate
Profitability Cascade
Gross
67.8%
Operating
40.7%
Top 25% in sector
Net
36.6%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+5.8 pts
FCF: 42.3% | Net: 36.6%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Net Debt / EBITDA
–Net Debt: $51.88B
Interest Coverage
–
Balance sheet risk & solvency analysis