Key Highlights

  • Broadcom (NASDAQ:AVGO) reported quarterly Revenue of USD 29.6B for Q3 2026, against USD 15.9B in Q3 2025; simple arithmetic on those two published numbers gives growth of about 86% in a year.
  • A scorecard places Broadcom (NASDAQ:AVGO) in phase 4 of 5, Capital Return, with trailing revenue of USD 89.1B, operating profit of USD 42.8B and Buybacks and dividends both in place.
  • The scorecard rates the Broadcom (NASDAQ:AVGO) moat Wide at 5 of 5 with direction Growing, citing strong switching costs and roughly 19,000 patents, while noting no single Patent is substantially relied upon.
  • Hock E. Tan has been chief executive of Broadcom (NASDAQ:AVGO) for 20 years and owns 0.018%, worth USD 296M; the scorecard shows Earnings beating estimates in 8 of 8 quarters by an average of 2.6%.

Phase Four of Five

The scorecard places Broadcom (NASDAQ:AVGO) in phase 4, Capital Return, after the Operating Leverage phase. It answers its three phase questions with yes: revenue grew 49% in the last year, operating profit of USD 42.8B is rising, and capital is returned through buybacks and dividends. Revenue and operating profit rose from USD 27.4B and USD 8.5B in fiscal 2021 to USD 63.9B and USD 25.5B in fiscal 2025, and to USD 89.1B and USD 42.8B on a trailing basis. Fiscal 2024 was a dip in profit, with operating profit of USD 13.5B on revenue of USD 51.6B. For an asset-light business, the scorecard treats operating profit as the best signal, so the phase call rests on that measure.

Moat and Growth

The scorecard gives the moat its top width score and a Growing direction. Switching costs are rated strong: custom chips are designed into platforms that run for years, and enterprise estates run production workloads on executable code only, so leaving means a migration. Intangible assets are rated moderate, as protection is spread across about 19,000 patents. Network effects, low-cost production and counter-positioning are rated none. Growth scores above average, with revenue growth of 48.7% over one year and 36.0% annualised over three, and earnings growth of 99.7% over one year. The scorecard answers yes to whether the industry is growing and says room for new offerings is likely.

Management and Execution

Hock E. Tan has led Broadcom (NASDAQ:AVGO) for 20 years, and founder Henry Samueli remains on the scorecard's management page. Management scores Great. Revenue beat estimates in 7 of the last 8 quarters by an average of 1.0%, with one miss in Q4 2024 at USD 14.1B, and Earnings Per Share beat in all 8 by an average of 2.6%. Quarterly earnings per share rose from USD 1.42 in Q4 2024 to USD 3.32 in Q3 2026. Employees rate the company 3.3 out of 5 on review sites. The risks include customer concentration and one foundry, and the next quarterly results will show whether the beat record holds.

Where Things Stand

Put simply, Broadcom (NASDAQ:AVGO) reached USD 29.6B of quarterly revenue by compounding growth in custom chips and software, according to the scorecard. The scorecard sees a Wide and Growing moat, Great management and a phase 4 company returning capital, with a composite Business score of 4.3 out of 5. It also sees growth that is above average rather than high, and a moderate risk score. These are the scorecard's views, not ours, and the sizable growth of the past year may not repeat.