Revenue has accelerated to an 85.5% year-over-year growth rate in Q3 2026, driving a structural expansion in gross margins to 69.1% and demonstrating exceptional operating leverage with operating income scaling to $16.0B.
Broadcom Inc. (AVGO) annual income statement — 20-year revenue, gross profit & net income history
| Metric | TTM | Nov'25 | Nov'24 | Oct'23 | Oct'22 | Oct'21 | Nov'20 | Nov'19 | Nov'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 |
|---|
| Sales/Revenue | 93.28B | 63.89B | 51.57B | 35.82B | 33.2B | 27.45B | 23.89B | 22.6B | 20.85B | 17.64B | 13.24B | 6.82B | 4.27B | 2.52B | 2.36B | 2.34B | 2.09B | 1.48B | 1.7B | 1.53B | 1.51B |
| Revenue Growth % | 46% | 23.87% | 43.98% | 7.88% | 20.96% | 14.91% | 5.71% | 8.39% | 18.21% | 33.2% | 94.02% | 59.85% | 69.4% | 6.6% | 1.2% | 11.61% | 41.04% | -12.65% | 11.26% | 0.93% | - |
| Cost of Goods Sold | 28.82B | 20.59B | 19.07B | 11.13B | 11.11B | 10.61B | 10.37B | 10.11B | 10.12B | 9.13B | 7.3B | 3.27B | 2.39B | 1.32B | 1.22B | 1.19B | 1.13B | 924M | 1.04B | 1.17B | 1.12B |
| COGS % of Revenue | - | 32.23% | 36.97% | 31.07% | 33.45% | 38.64% | 43.42% | 44.76% | 48.52% | 51.75% | 55.14% | 47.93% | 56.03% | 52.46% | 51.69% | 50.9% | 53.85% | 62.26% | 61.45% | 76.29% | 74.29% |
| Gross Profit | 62.96B | 43.29B | 32.51B | 24.69B | 22.09B | 16.84B | 13.52B | 12.48B | 10.73B | 8.51B | 5.94B | 3.55B | 1.88B | 1.2B | 1.14B | 1.15B | 966M | 560M | 655M | 362M | 389M |
| Gross Margin % | 67.5% | 67.77% | 63.03% | 68.93% | 66.55% | 61.36% | 56.58% | 55.24% | 51.48% | 48.25% | 44.86% | 52.07% | 43.97% | 47.54% | 48.31% | 49.1% | 46.15% | 37.74% | 38.55% | 23.71% | 25.71% |
| Gross Profit Growth % | - | 33.18% | 31.67% | 11.74% | 31.17% | 24.62% | 8.28% | 16.3% | 26.14% | 43.25% | 67.18% | 89.29% | 56.68% | 4.9% | -0.44% | 18.74% | 72.5% | -14.5% | 80.94% | -6.94% | - |
| Operating Expenses | 17.27B | 17.81B | 19.05B | 8.48B | 7.81B | 8.32B | 9.5B | 9.04B | 5.6B | 6.14B | 6.35B | 1.92B | 1.44B | 646M | 555M | 559M | 497M | 512M | 495M | 467M | 479M |
| OpEx % of Revenue | - | 27.88% | 36.93% | 23.68% | 23.53% | 30.33% | 39.78% | 40% | 26.85% | 34.8% | 47.95% | 28.15% | 33.71% | 25.63% | 23.48% | 23.93% | 23.75% | 34.5% | 29.13% | 30.58% | 31.66% |
| Selling, General & Admin | 4.17B | 4.21B | 4.96B | 1.59B | 1.38B | 1.35B | 1.94B | 1.71B | 1.06B | 789M | 806M | 486M | 407M | 222M | 199M | 220M | 196M | 169M | 196M | 193M | 270M |
| SG&A % of Revenue | - | 6.59% | 9.62% | 4.44% | 4.16% | 4.91% | 8.1% | 7.56% | 5.07% | 4.47% | 6.09% | 7.12% | 9.53% | 8.81% | 8.42% | 9.42% | 9.36% | 11.39% | 11.54% | 12.64% | 17.85% |
| Research & Development | 11.84B | 10.98B | 9.31B | 5.25B | 4.92B | 4.85B | 4.97B | 4.7B | 3.77B | 3.29B | 2.67B | 1.05B | 695M | 398M | 335M | 317M | 280M | 245M | 265M | 205M | 209M |
| R&D % of Revenue | - | 17.18% | 18.05% | 14.67% | 14.81% | 17.68% | 20.8% | 20.78% | 18.07% | 18.67% | 20.2% | 15.37% | 16.28% | 15.79% | 14.17% | 13.57% | 13.38% | 16.51% | 15.6% | 13.43% | 13.81% |
| Other Operating Expenses | 2M | 2.62B | 4.78B | 1.64B | 1.51B | 2.12B | 2.6B | 2.63B | 774M | 2.06B | 2.87B | 386M | 337M | 26M | 21M | 22M | 21M | 98M | 34M | 69M | 0 |
| Operating Income | 46.37B | 25.48B | 13.46B | 16.21B | 14.22B | 8.52B | 4.01B | 3.44B | 5.13B | 2.37B | -409M | 1.63B | 438M | 552M | 582M | 584M | 470M | 48M | 160M | -105M | -90M |
| Operating Margin % | 49.72% | 39.89% | 26.1% | 45.25% | 42.84% | 31.03% | 16.8% | 15.24% | 24.63% | 13.44% | -3.09% | 23.92% | 10.26% | 21.9% | 24.62% | 25% | 22.46% | 3.23% | 9.42% | -6.88% | -5.95% |
| Operating Income Growth % | - | 89.29% | -16.93% | 13.93% | 66.98% | 112.23% | 16.55% | -32.93% | 116.58% | 679.71% | -125.06% | 272.6% | -20.65% | -5.15% | -0.34% | 24.26% | 879.17% | -70% | 252.38% | -16.67% | - |
| EBITDA | 55.07B | 34.26B | 23.47B | 20.04B | 19.21B | 14.56B | 10.92B | 9.22B | 9.2B | 7.1B | 2.63B | 2.59B | 1.06B | 739M | 737M | 741M | 629M | 208M | 319M | 71M | 120M |
| EBITDA Margin % | 59.04% | 53.62% | 45.51% | 55.95% | 57.85% | 53.04% | 45.71% | 40.82% | 44.1% | 40.24% | 19.86% | 38.01% | 24.9% | 29.33% | 31.18% | 31.72% | 30.05% | 14.02% | 18.78% | 4.65% | 7.93% |
| EBITDA Growth % | 61.23% | 45.95% | 17.12% | 4.34% | 31.93% | 33.35% | 18.36% | 0.33% | 29.56% | 169.95% | 1.35% | 144.03% | 43.84% | 0.27% | -0.54% | 17.81% | 202.4% | -34.8% | 349.3% | -40.83% | - |
| D&A (Non-Cash Add-back) | 8.76B | 8.78B | 10.01B | 3.83B | 4.98B | 6.04B | 6.91B | 5.78B | 4.06B | 4.73B | 3.04B | 962M | 625M | 187M | 155M | 157M | 159M | 160M | 159M | 176M | 210M |
| EBIT | 43.49B | 25.94B | 13.87B | 16.72B | 14.17B | 8.65B | 4.22B | 3.67B | 5.17B | 2.28B | -522M | 1.66B | 452M | 570M | 586M | 564M | 440M | 41M | 146M | -103M | -105M |
| Net Interest Income | -3.01B | -2.86B | -3.49B | -1.09B | -1.64B | -1.87B | -1.72B | -1.35B | -514M | -410M | -575M | -183M | -104M | 2M | 3M | -3M | -34M | -77M | -86M | -109M | -143M |
| Interest Income | 0 | 347M | 461M | 535M | 100M | 16M | 53M | 98M | 114M | 44M | 10M | 8M | 6M | 4M | 4M | 1M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 3.03B | 3.21B | 3.95B | 1.62B | 1.74B | 1.89B | 1.78B | 1.44B | 628M | 454M | 585M | 191M | 110M | 2M | 1M | 4M | 34M | 77M | 86M | 109M | 143M |
| Other Income/Expense | -2.54B | -2.75B | -3.55B | -1.11B | -1.79B | -1.75B | -1.57B | -1.22B | -590M | -546M | -698M | -165M | -96M | 16M | 3M | -23M | -64M | -84M | -100M | -107M | -158M |
| Pretax Income | 40.47B | 22.73B | 9.92B | 15.1B | 12.43B | 6.76B | 2.44B | 2.23B | 4.54B | 1.82B | -1.11B | 1.47B | 342M | 568M | 585M | 561M | 406M | -36M | 60M | -212M | -248M |
| Pretax Margin % | 43.39% | 35.58% | 19.23% | 42.15% | 37.45% | 24.64% | 10.23% | 9.85% | 21.8% | 10.35% | -8.36% | 21.5% | 8.01% | 22.54% | 24.75% | 24.02% | 19.4% | -2.43% | 3.53% | -13.88% | -16.39% |
| Income Tax | 2.2B | -397M | 3.75B | 1.01B | 939M | 29M | -518M | -510M | -8.08B | 35M | 642M | 76M | 33M | 16M | 22M | 9M | -9M | 8M | 3M | 8M | 5M |
| Effective Tax Rate % | 5.45% | -1.75% | 37.8% | 6.72% | 7.55% | 0.43% | -21.2% | -22.91% | -177.87% | 1.92% | -57.99% | 5.18% | 9.65% | 2.82% | 3.76% | 1.6% | -2.22% | -22.22% | 5% | -3.77% | -2.02% |
| Net Income | 39.06B | 23.13B | 5.89B | 14.08B | 11.49B | 6.74B | 2.96B | 2.72B | 12.26B | 1.69B | -1.74B | 1.36B | 263M | 552M | 563M | 552M | 415M | -44M | 83M | -159M | -251M |
| Net Margin % | 41.87% | 36.2% | 11.43% | 39.31% | 34.62% | 24.54% | 12.39% | 12.05% | 58.8% | 9.59% | -13.13% | 19.99% | 6.16% | 21.9% | 23.82% | 23.63% | 19.83% | -2.96% | 4.89% | -10.41% | -16.59% |
| Net Income Growth % | 68.89% | 292.3% | -58.14% | 22.51% | 70.65% | 127.57% | 8.66% | -77.78% | 624.53% | 197.3% | -227.49% | 418.63% | -52.36% | -1.95% | 1.99% | 33.01% | 1043.18% | -153.01% | 152.2% | 36.65% | - |
| Net Income (Continuing) | 38.27B | 23.13B | 6.17B | 14.08B | 11.49B | 6.74B | 2.96B | 2.74B | 12.63B | 1.79B | -1.75B | 1.39B | 309M | 552M | 563M | 552M | 415M | -44M | 57M | -220M | -253M |
| Discontinued Operations | 0 | 0 | -273M | 0 | 0 | 0 | -1M | -12M | 0 | -6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 26M | 61M | 2M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.9B | 2.98B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 7.99 | 4.77 | 1.23 | 3.30 | 2.65 | 1.50 | 0.63 | 0.64 | 2.84 | 0.42 | -0.44 | 0.49 | 0.10 | 0.22 | 0.23 | 0.22 | 0.17 | -0.02 | 0.04 | -0.07 | -0.10 |
| EPS Growth % | 68.07% | 287.8% | -62.73% | 24.53% | 76.67% | 138.1% | -1.56% | -77.46% | 576.19% | 195.45% | -189.8% | 394.95% | -55% | -4.35% | 4.55% | 29.41% | 945.77% | -152.89% | 151.35% | 26% | - |
| EPS (Basic) | - | 4.91 | 1.27 | 3.39 | 2.74 | 1.57 | 0.66 | 0.68 | 2.93 | 0.42 | -0.48 | 0.52 | 0.11 | 0.22 | 0.23 | 0.23 | 0.17 | -0.02 | 0.04 | -0.07 | -0.10 |
| Diluted Shares Outstanding | 4.89B | 4.85B | 4.78B | 4.27B | 4.23B | 4.29B | 4.21B | 4.19B | 4.31B | 4.09B | 3.83B | 2.81B | 2.67B | 2.52B | 2.5B | 2.52B | 2.46B | 2.19B | 2.19B | 2.14B | 2.46B |
| Basic Shares Outstanding | 4.77B | 4.71B | 4.62B | 4.15B | 4.09B | 4.1B | 4.02B | 3.98B | 4.18B | 4.05B | 3.66B | 2.64B | 2.51B | 2.52B | 2.45B | 2.45B | 2.38B | 2.19B | 2.14B | 2.14B | 2.46B |
| Dividend Payout Ratio | - | 48.18% | 166.48% | 54.29% | 61.17% | 92.22% | 186.96% | 155.47% | 24.46% | 97.69% | - | 29.91% | 107.98% | 35.87% | 24.33% | 15.58% | - | - | - | - | - |
Quick answers to the most common questions about buying AVGO stock.
For fiscal year 2025, Broadcom Inc. (AVGO) reported total revenue of $63.89B. This represents a 4122.5% increase compared to $1.51B in 2006.
Broadcom Inc. (AVGO) is profitable, generating $23.13B in net income for the fiscal year ending 2025 with a net profit margin of 36.2%.
Broadcom Inc. (AVGO) reported an operating income of $25.48B, resulting in an operating profit margin of 39.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Broadcom Inc. (AVGO) generated $43.29B in gross profit for the year, representing a gross profit margin of 67.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Customer concentration and AI cycle dependency
Metrics are mathematically derived from official filings.
AI-Driven Hyper-Growth Phase
Broadcom's revenue growth has accelerated dramatically, with Q3 2026 revenue of $29.6B representing an 85.5% year-over-year increase, driven by explosive demand for AI semiconductor solutions that now dominate the top-line narrative.
The growth trajectory has shifted from a steady 20-30% range in early 2025 to a parabolic acceleration, with the most recent quarter showing a 54% sequential jump. This suggests the AI infrastructure cycle is not just additive but is fundamentally reshaping the company's revenue mix and scale. The durability of this growth is now the central question, as it appears heavily tied to hyperscaler capital expenditure cycles rather than traditional end-market diversification.
Structural Margin Expansion from Mix Shift
Gross margins have expanded from 62.3% in Q2 2024 to 69.1% in Q3 2026, a structural improvement likely driven by the high-margin AI accelerator and software mix, which now commands significant pricing power.
The margin expansion appears structural rather than cyclical, as it has persisted through multiple quarters and coincides with the ramp of custom AI silicon and the full integration of VMware's software revenue. This 690 basis point improvement in gross margin suggests Broadcom is successfully capturing value from the AI build-out, moving beyond its historical role as a merchant silicon provider. The operating margin expansion to 53.9% indicates that operating leverage is being realized as revenue scales faster than the fixed R&D and SG&A base.
Exceptional Operating Leverage Realized
Operating income has scaled from $3.0B in Q2 2024 to $16.0B in Q3 2026, a 433% increase, demonstrating powerful operating leverage as revenue growth outpaces the relatively stable cost structure.
The operating margin expansion from 23.7% to 53.9% over this period indicates that Broadcom's fabless model and disciplined cost structure are allowing incremental revenue to flow directly to the bottom line. SG&A has remained remarkably stable around $1.0-1.1B per quarter despite the massive revenue growth, suggesting exceptional overhead efficiency. This level of operating leverage is rare in the semiconductor industry and appears to be a direct result of the high-margin AI and software mix.
Non-GAAP Adjustments Mask True Profitability
The significant gap between GAAP net income and non-GAAP metrics, along with $2.0B in quarterly stock-based compensation, suggests investors should focus on cash flow from operations as the most reliable measure of underlying profitability.
The Q3 2024 net loss of -$1.9B versus the subsequent quarters' strong profitability highlights the volatility introduced by acquisition-related accounting and purchase price amortization. Stock-based compensation has remained elevated at $2.0-2.3B per quarter, representing a meaningful non-cash expense that dilutes shareholders. The reported EPS growth of 2.2% in Q3 2026 appears anomalous given the 85.5% revenue growth, likely reflecting the impact of these non-cash charges and tax adjustments on the GAAP figure.
The AI Inflection Point of 2025-2026
The period from Q4 2025 to Q3 2026 represents a clear operational inflection, where revenue growth accelerated from 28.2% to 85.5% and operating margins expanded by over 1,200 basis points, fundamentally altering the company's earnings power.
This inflection appears driven by the simultaneous ramp of custom AI accelerators for hyperscalers and the full contribution of VMware's software revenue. The lasting impact is a permanent step-change in both revenue scale and profitability, moving Broadcom from a mid-teens growth company to a hyper-growth AI infrastructure leader. The key question for sustainability is whether this represents a new baseline or a peak cycle, given the concentration of growth in AI-related spending.
AI Cycle Dependency and Margin Sustainability
The explosive growth may be masking underlying risks, as the 85.5% revenue growth is heavily concentrated in AI semiconductor sales to a few hyperscalers, creating significant customer concentration and cycle risk.
Short-sellers would focus on the sustainability of this growth rate, noting that the AI infrastructure build-out is inherently cyclical and could lead to a sharp deceleration when hyperscaler capex normalizes. The margin expansion to 69.1% gross and 53.9% operating may be difficult to maintain if the mix shifts back toward lower-margin legacy products or if foundry costs increase. Furthermore, the reliance on a few large customers for AI accelerators creates a binary risk profile that contrasts with Broadcom's historical diversification across wireless, networking, and enterprise software.