"The integration of VMware is going very well... We expect spending will continue to decline towards a $1.3 billion run rate exiting Q4."
— Hock Tan
03Detailed Report
AVGO
Broadcom Inc
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 19, 2026
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Executive Summary
In Q2 2024, Broadcom Inc (AVGO) reported robust financials with total revenue reaching $12.5 billion, a 43% year-over-year increase driven significantly by the inclusion of VMware's financial performance. Excluding VMware, organic growth was measured at 12%. The standout performance was in AI-related revenue, soaring by 280% to $3.1 billion, which underscored the strength of Broadcom's position in the rapidly evolving semiconductor landscape. Operating income rose to $3.31 billion with a margin of 26.5%, while net income stood at $2.12 billion, showcasing a healthy margin of 17%. Management continues to emphasize the transition to AI, projecting fiscal 2024 revenue guidance raised to $51 billion, cutting costs post-acquisition, and an optimistic view on future cash flows as integration efforts with VMware yield operational efficiencies.
Key Performance Indicators
Revenue
Increasing
12.49B
QoQ: 4.40% | YoY: 40.68%
Gross Profit
Increasing
7.00B
56.07% margin
QoQ: 4.90% | YoY: 13.60%
Operating Income
Decreasing
3.31B
QoQ: 18.43% | YoY: -14.16%
Net Income
Decreasing
2.12B
QoQ: 60.08% | YoY: -35.79%
EPS
Decreasing
0.46
QoQ: 58.62% | YoY: -42.50%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $12.5 billion (up 43% YoY, 12% excluding VMware contributions)
- Gross Profit: $7 billion with a gross margin of 56%
- Operating Income: $3.31 billion (operating margin of 26.5%)
- Net Income: $2.12 billion (net margin of 17%)
- EPS: $0.46 (diluted)
- Free Cash Flow: $4.4 billion (36% of revenues)
- Debt Repayment: $2 billion of floating rate debt repaid
- Cash at Quarter End: $9.8 billion; $74 billion in gross debt, leading to a debt equity ratio of 1.058.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
12.49B
40.68%
4.40%
Gross Profit
7.00B
13.60%
4.90%
Operating Income
3.31B
-14.16%
18.43%
Net Income
2.12B
-35.79%
60.08%
EPS
0.46
-42.50%
58.62%
Key Financial Ratios
Gross Profit Margin
Good
56.10%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Excellent
26.50%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Good
17.00%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.21%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.03%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.25
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
1.06
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
High Growth
71.82x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
High Premium
8.71x
Very high premium suggests asset-light business model or lofty expectations
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