Broadcom Reports Strong Profit Growth Outpacing Revenue
Broadcom (AVGO) is set to report its fiscal third-quarter results on Wednesday, September 2. The company's trailing-12-month revenue has grown by 32% year-over-year to $75.5 billion, but net income surged even faster at 127%, reaching $29.3 billion — nearly four times the pace of revenue growth. This significant profit expansion is partly due to a one-time tax charge in fiscal Q3 2024 that skewed year-over-year comparisons downward. Even excluding this, profit still grew twice as fast as revenue. The company's operating margin has expanded from about 39% a year ago to nearly 49%, driven by controlled costs and increased efficiency. In the most recent fiscal second quarter (ended May 3), Broadcom saw an 88% increase in net income alongside a 48% rise in revenue. Operating expenses grew only slightly, with R&D up 11% while SG&A decreased. The AI segment is driving much of this growth and will be closely watched as the company forecasts $29.4 billion in Q3 revenue.
Tickers: $AVGO
Topics: Broadcom operating margin profitability revenue growth