Executive Summary
Broadcom reported Q4 2024 revenue of $14.054 billion, up 12.6% year over year and 7.5% quarter over quarter, with strong profitability and substantial free cash flow generation. The company benefits from a diversified mix across Semiconductor Solutions and Infrastructure Software, delivering a robust gross margin of approximately 64.05% and an operating margin of 32.93%, contributing to net income of $4.324 billion and diluted EPS of $0.90ā$0.92 for the period. Free cash flow reached $5.482 billion, underpinning a substantial balance sheet capacity to fund acquisitions, buybacks, and dividends, while supporting a net debt position of roughly $58.2 billion on a cash balance of about $9.35 billion.
The quarter reinforces Broadcomās ability to monetize multiāyear secular demand drivers in data center networking, cloud infrastructure, 5G, and enterprise storage, while continuing to invest in R&D and strategic software offerings. However, the reported leverage and high intangible asset base underscore the importance of sustained cash flow generation to deleverage over time and to maintain investment-grade liquidity. In the near term, investors should monitor macro semiconductor cycles, FX dynamics, and the pace of software revenue contribution as the company integrates acquisitions and scales its Infrastructure Software business.
Key Performance Indicators
QoQ: 330.61% | YoY:103.87%
QoQ: 330.00% | YoY:100.00%
Key Insights
Revenue: 14.054B; YoY +12.55%; QoQ +7.51%
Gross Profit: 9.002B; Gross Margin 64.05%; YoY +28.56%; QoQ +7.73%
Operating Income: 4.627B; Margin 32.93%; YoY +39.79%; QoQ +22.15%
Net Income: 4.324B; Net Margin 30.77%; YoY +103.87%; QoQ +330.61%
EPS (GAAP): 0.92; EPS Diluted: 0.90; YoY EPS +100%; QoQ +330%
Cash Flow: Operating Cash Flow 5.604B; Free Cash Flow 5.482B; Capex 1.22B; FCF Margin ~39%
Balance Sheet: Total Assets 165.645B; Total Liabilities 97.967B; Total Stockholdersā Equity 67.678B
Liqu...
Financial Highlights
Revenue: 14.054B; YoY +12.55%; QoQ +7.51%
Gross Profit: 9.002B; Gross Margin 64.05%; YoY +28.56%; QoQ +7.73%
Operating Income: 4.627B; Margin 32.93%; YoY +39.79%; QoQ +22.15%
Net Income: 4.324B; Net Margin 30.77%; YoY +103.87%; QoQ +330.61%
EPS (GAAP): 0.92; EPS Diluted: 0.90; YoY EPS +100%; QoQ +330%
Cash Flow: Operating Cash Flow 5.604B; Free Cash Flow 5.482B; Capex 1.22B; FCF Margin ~39%
Balance Sheet: Total Assets 165.645B; Total Liabilities 97.967B; Total Stockholdersā Equity 67.678B
Liquidity & Leverage: Cash 9.348B; Total Debt 67.566B; Net Debt 58.218B; Current Ratio 1.174; Quick Ratio 1.068; Debt/Equity ~0.998
Valuation (as of QQ4 2024): P/E ~48.3x; P/B ~12.3x; P/S ~59.4x; Dividend Yield ~0.30%
Market Position: Strong position in Semiconductor Solutions and a growing Infrastructure Software franchise; well-positioned to capitalize on data center and cloud demand; robust cash generation supports shareholder returns.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
14.05B |
12.55% |
7.51% |
| Gross Profit |
9.00B |
28.56% |
7.73% |
| Operating Income |
4.63B |
39.79% |
22.15% |
| Net Income |
4.32B |
103.87% |
330.61% |
| EPS |
0.92 |
100.00% |
330.00% |
Key Financial Ratios
operatingProfitMargin
32.9%
operatingCashFlowPerShare
$1.13
freeCashFlowPerShare
$1.11
dividendPayoutRatio
57.4%
Management Commentary
Transcript data not provided in the supplied materials. No management quotes are available from an earnings call in this dataset. When available, notable themes typically include strategy execution (portfolio mix, software integration), operating efficiency, demand signals from enterprise/data center customers, and commentary on supply chain and currency considerations.
Forward Guidance
No explicit quarterly guidance was included in the provided materials. Based on the quarterās revenue strength, margin stability, and free cash flow generation, the trajectory suggests ongoing upside from diversified growth across semiconductors and infrastructure software. Nonetheless, investors should watch: (1) semiconductor demand cycles and supply/demand balance, (2) FX translation effects given the USD reporting and international exposure, (3) the cadence of software ARR growth and the monetization of acquired assets, and (4) deleveraging progress given a net debt position around $58.2 billion. If management reinforces midā to longāterm targets, key milestones to monitor would include sustainable FCF conversion, software mix growth, and debt reduction pace.