Broadcom reported Q3 2024 revenue of USD 13.072 billion, up 9.29% year over year, with a gross profit of USD 7.60 billion and a gross margin around 58.2%. Operating income reached USD 4.23 billion and EBITDA USD 6.39 billion, signaling solid operating efficiency across Broadcom’s diversified Semiconductor Solutions and Infrastructure Software platforms. However, the quarter delivered a GAAP net loss of USD 1.88 billion and earnings per share of -0.40, driven predominantly by a substantial tax expense of USD 4.24 billion and non-operating items that overshadow the core earnings trajectory.
Cash generation remained robust: net cash from operating activities USD 4.96 billion and free cash flow approximately USD 4.79 billion, supported by depreciation and amortization of USD 2.52 billion. The company ended the period with USD 9.95 billion of cash and equivalents and a reported total debt of USD 69.96 billion, resulting in a net debt position of about USD 60.01 billion. This liquidity supports aggressive capital allocation: acquisitions worth USD 3.48 billion, share repurchases of USD 1.35 billion, and cash dividends of USD 2.45 billion in the period. Despite a net loss on GAAP terms, Broadcom’s cash-generative profile provides a path to deleveraging and continued investment in both semiconductor and software franchises.
From a market perspective, Broadcom maintains a leading position in high-margin semiconductors and enterprise software, with a diversified end-market mix spanning data centers, networking, telecom, and consumer electronics. The reported results imply near-term margin resilience, but the earnings trajectory is being influenced by tax considerations and sizable one-time items that can mask underlying quarterly profitability. Given the lack of explicit forward guidance in the provided data, investors should monitor debt reduction momentum, tax normalization, and demand development in cloud, enterprise networking, and software markets as the key variables shaping the investment thesis over the coming quarters.