AVGO
Broadcom Inc.
Technology · Semiconductors · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Broadcom earned near-maximum scores in growth and momentum, driven by a near-tripling of net income and four consecutive quarters of rising revenue and operating income, anchoring the composite score.
- A perfect profitability score reflecting a 39.9% operating margin and 36.2% net margin added significant weight to the overall 72.6 composite rating.
- Mid-range scores in financial health and dividends, combined with zero theme score contribution, kept the total from reaching a higher tier despite the strong operational results.
Why Not Higher
- The theme factor assigned to AI Infrastructure and Semiconductors contributed zero points under the model's current scoring methodology, representing a meaningful gap in the composite score.
- Financial health and dividend scores were both constrained — the debt-to-equity ratio of 0.76 and a dividend payout ratio of 48.2% were recognized but did not earn top-tier ratings — limiting upside to the total.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $51,574,000,000 to FY2025's $63,887,000,000, a gain of +23.9%. Net income surged from FY2024's $5,895,000,000 to FY2025's $23,126,000,000 (+292.3%), while diluted EPS rose from $1.23 in FY2024 to $4.77 in FY2025 (+287.8%).
The model rewarded the combination of strong top-line expansion and an exceptional bottom-line acceleration, with the near-tripling of net income and EPS driving the score close to the maximum.
In FY2025, Broadcom posted a net margin of 36.2%, an operating margin of 39.9%, and a return on assets of 13.5%.
These metrics reflect a highly efficient business where more than a third of every revenue dollar flows to net income and operating margins exceed net margins, indicating disciplined cost control; the model awarded the maximum score in recognition of this profitability profile.
In FY2025, Broadcom carried a debt-to-equity ratio of 0.76 against total assets of $171,092,000,000.
A debt-to-equity ratio below 1.0 suggests leverage is moderate relative to equity, and the large asset base provides scale; however, the model's score of 14 out of 20 indicates that additional dimensions of financial health not fully captured in the available filing data may have constrained the rating.
Quarterly revenue rose consecutively from $15,952,000,000 in 2025Q3 to $18,015,000,000 in 2025Q4, $19,311,000,000 in 2026Q1, and $22,187,000,000 in 2026Q2. Operating income followed the same unbroken upward path, from $5,887,000,000 in 2025Q3 to $10,788,000,000 in 2026Q2, while net income, though variable quarter to quarter, reached $9,310,000,000 in 2026Q2.
The model rewarded the consistent sequential acceleration in both revenue and operating income across all four reported quarters, reflecting sustained and strengthening business momentum.
Broadcom has grown its dividends per share each year from $1.64 in FY2022 to $1.84 in FY2023, $2.105 in FY2024, and $2.36 in FY2025, with a dividend payout ratio of 48.2% in FY2025.
The model recognized a consistent multi-year dividend growth trend and a moderate payout ratio that leaves room for reinvestment, but the mid-range score of 10 out of 20 suggests the yield level or payout characteristics did not qualify for a higher tier under the model's dividend methodology.
Broadcom is assigned to the AI Infrastructure and Semiconductors macro themes.
Although Broadcom carries two high-profile macro theme assignments, the sub-score of 0 out of 20 indicates that this assignment did not translate into score contribution under the model's current theme-scoring methodology.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Broadcom delivered exceptional financial performance in FY2025, with revenue growing 23.9% year-over-year to $63.9 billion and net income surging 292.3% to $23.1 billion, reflecting both strong top-line expansion and dramatic margin improvement. The company posted a net margin of 36.2% and an operating margin of 39.9%, earning a perfect profitability score. Sequential quarterly momentum has been unbroken, with revenue climbing from $15.95 billion in 2025Q3 to $22.19 billion in 2026Q2 and operating income nearly doubling over the same period. Broadcom also maintains a consistent dividend growth track record and moderate leverage, though its theme assignment to AI Infrastructure and Semiconductors did not contribute to the model score under the current methodology.
Plain English
Broadcom is a chip company that nearly tripled its profits in one year, keeps growing its sales every quarter, and returns cash to shareholders through steadily rising dividends — making it a financially strong business with serious momentum behind it.
Bull Case vs. Bear Case
Bull Case
- Net income surged 292.3% from $5.9 billion in FY2024 to $23.1 billion in FY2025, while diluted EPS rose from $1.23 to $4.77, demonstrating exceptional bottom-line acceleration.
- Operating margins of 39.9% and a net margin of 36.2% in FY2025 reflect a highly efficient business where disciplined cost control allows more than a third of every revenue dollar to flow to net income.
- Quarterly revenue has risen consecutively from $15.95 billion in 2025Q3 to $22.19 billion in 2026Q2, with operating income following the same unbroken upward path to $10.79 billion in 2026Q2, signaling sustained and strengthening business momentum.
Bear Case
- The dividend sub-score landed at the mid-range, suggesting the yield level or payout characteristics did not qualify for a higher tier, even as dividends per share grew from $1.64 in FY2022 to $2.36 in FY2025.
- The financial health score of 14 out of 20 indicates that additional dimensions beyond the reported debt-to-equity ratio of 0.76 may have constrained the rating, leaving some uncertainty about the full leverage picture.
- Despite being assigned to the high-profile AI Infrastructure and Semiconductors macro themes, the theme factor contributed zero points to the model score under the current methodology, limiting the composite total.
What Could Change the Picture
Bullish Triggers
- If quarterly revenue and operating income continue their unbroken sequential acceleration beyond 2026Q2, it would reinforce the case that Broadcom's growth trajectory is durable rather than cyclical.
- A further expansion of net margins beyond the current 36.2% would signal that profitability improvements are structural, strengthening the already-perfect profitability profile.
Bearish Triggers
- A reversal or flattening in the sequential quarterly revenue trend — which has risen every quarter from 2025Q3 through 2026Q2 — would undermine the momentum thesis that is a key driver of the composite score.
- A meaningful increase in the debt-to-equity ratio above the current 0.76 could raise concerns about leverage given the already-noted constraints on the financial health score.
Risk Profile
Medium RiskBroadcom carries a debt-to-equity ratio of 0.76 against a total asset base of $171.1 billion, suggesting moderate but not negligible leverage; the financial health score indicates that dimensions beyond this ratio may present additional risk. While quarterly momentum has been consistently positive through 2026Q2, net income has shown quarter-to-quarter variability even as operating income trended steadily upward, introducing some earnings predictability risk.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.