Broadcom Inc. Announces Third Quarter Fiscal Year 2023 Financial Results and Quarterly Dividend

Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its third quarter of fiscal year 2023, ended July 30, 2023, provided guidance for the fourth quarter of its fiscal year 2023 and announced its quarterly dividend.

“Broadcom’s third quarter results were driven by demand for next generation networking technologies as hyperscale customers scale out and network their AI clusters within data centers,” said Hock Tan, President and CEO of Broadcom Inc. “Our fourth quarter outlook projects year-over-year growth, reflecting continued leadership in networking for generative AI.”

“Consolidated revenue for the third quarter grew 5% year-over-year to $8.9 billion and adjusted EBITDA increased 8% year-over-year to 65% of revenue,” said Kirsten Spears, CFO of Broadcom Inc. “We generated $4.6 billion in free cash flow in the third quarter, and expect cash flows to remain solid for Q4.”

Third Quarter Fiscal Year 2023 Financial Highlights    

(Dollars in millions, except per share data)Q3 23Q3 22ChangeQ3 23Q3 22Change
Net revenue$8,876$8,464+5 %$8,876$8,464+5 %
Net income$3,303$3,074+$229$4,596$4,241+$355
Earnings per common share – diluted$7.74$7.15+$0.59$10.54$9.73+$0.81
(Dollars in millions)Q3 23Q3 22Change
Cash flow from operations$4,719$4,424+$295
Adjusted EBITDA$5,801$5,378+$423
Free cash flow$4,597$4,308+$289
Net revenue by segment
(Dollars in millions)Q3 23Q3 22Change
Semiconductor solutions$6,94178 %$6,62478 %+5 %
Infrastructure software1,935221,84022+5 %
Total net revenue$8,876100 %$8,464100 %

The Company’s cash and cash equivalents at the end of the fiscal quarter were $12,055 million, compared to $11,553 million at the end of the prior quarter.

During the third fiscal quarter, the Company generated $4,719 million in cash from operations and spent $122 million on capital expenditures. The Company spent $2,167 million on share repurchases and eliminations, consisting of $1,707 million in repurchases of 2.4 million shares and $460 million of withholding tax payments related to net settled equity awards that vested in the quarter (representing approximately 0.5 million shares withheld).

On June 30, 2023, the Company paid a cash dividend of $4.60 per share, totaling $1,901 million.

The differences between the Company’s GAAP and non-GAAP results are described generally under “Non-GAAP Financial Measures” below, and presented in detail in the financial reconciliation tables attached to this release.

Fourth Quarter Fiscal Year 2023 Business Outlook

Based on current business trends and conditions, the outlook for the fourth quarter of fiscal year 2023, ending October 29, 2023, is expected to be as follows: 

  • Fourth quarter revenue guidance of approximately $9.27 billion; and
  • Fourth quarter Adjusted EBITDA guidance of approximately 65 percent of projected revenue.

The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. The Company is not readily able to provide a reconciliation of projected Adjusted EBITDA to projected net income without unreasonable effort. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

Quarterly Dividends

The Company’s Board of Directors has approved a quarterly cash dividend of $4.60 per share. The dividend is payable on September 29, 2023 to stockholders of record at the close of business (5:00 p.m. Eastern Time) on September 21, 2023.

Financial Results Conference Call

Broadcom Inc. will host a conference call to review its financial results for the third quarter fiscal year 2023 and to discuss the business outlook, today at 2:00 p.m. Pacific Time.

To Listen via Internet: The conference call can be accessed live online in the Investors section of the Broadcom website at

To Listen via Telephone: Preregistration is required by the conference call operator. Please preregister at Upon registering, you will be emailed a link to the dial-in number and unique PIN.

Replay: An audio replay of the conference call can be accessed for one year through the Investors section of Broadcom’s website at

Non-GAAP Financial Measures

The non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release. Broadcom believes non-GAAP financial information provides additional insight into the Company’s on-going performance. Therefore, Broadcom provides this information to investors for a more consistent basis of comparison and to help them evaluate the results of the Company’s on-going operations and enable more meaningful period to period comparisons. 

In addition to GAAP reporting, Broadcom provides investors with net income, operating income, gross margin, operating expenses, cash flow and other data on a non-GAAP basis. This non-GAAP information excludes amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring and other charges, acquisition-related costs, including integration costs, non-GAAP tax reconciling adjustments, and other adjustments. Management does not believe that these items are reflective of the Company’s underlying performance. Internally, these non-GAAP measures are significant measures used by management for purposes of evaluating the core operating performance of the Company, establishing internal budgets, calculating return on investment for development programs and growth initiatives, comparing performance with internal forecasts and targeted business models, strategic planning, evaluating and valuing potential acquisition candidates and how their operations compare to the Company’s operations, and benchmarking performance externally against the Company’s competitors. The exclusion of these and other similar items from Broadcom’s non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent or unusual.

Free cash flow measures have limitations as they omit certain components of the overall cash flow statement and do not represent the residual cash flow available for discretionary expenditures. Investors should not consider presentation of free cash flow measures as implying that stockholders have any right to such cash. Broadcom’s free cash flow may not be calculated in a manner comparable to similarly named measures used by other companies.

About Broadcom Inc.

Broadcom Inc. (NASDAQ: AVGO), a Delaware corporation headquartered in San Jose, CA, is a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. Broadcom’s category-leading product portfolio serves critical markets including data center, networking, enterprise software, broadband, wireless, storage and industrial. Our solutions include data center networking and storage, enterprise, mainframe and cyber security software focused on automation, monitoring and security, smartphone components, telecoms and factory automation. For more information, go to

Cautionary Note Regarding Forward-Looking Statements 

This announcement contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning Broadcom. These statements include, but are not limited to, statements that address our expected future business and financial performance, our plans and expectations with regard to our share repurchases, and other statements identified by words such as “will,” “expect,” “believe,” “anticipate,” “estimate,” “should,” “intend,” “plan,” “potential,” “predict,” “project,” “aim,” and similar words, phrases or expressions. These forward-looking statements are based on current expectations and beliefs of the management of Broadcom, as well as assumptions made by and information currently available to such management, current market trends and market conditions and involve risks and uncertainties, many of which are outside the Company’s and management’s control and may cause actual results to differ materially from those contained in forward-looking statements. Accordingly, you should not place undue reliance on such statements.

Particular uncertainties that could materially affect future results include risks associated with: global economic conditions and concerns; cyclicality in the semiconductor industry or in our target markets; any loss of our significant customers and fluctuations in the timing and volume of significant customer demand; our dependence on contract manufacturing and outsourced supply chain; our dependency on a limited number of suppliers; government regulations and administrative proceedings, trade restrictions and trade tensions; global political and economic conditions; failing to complete or realize the expected benefits of our acquisition of VMware, Inc.; any acquisitions we may make, including our acquisition of VMware, such as delays, challenges and expenses associated with receiving governmental and regulatory approvals and satisfying other closing conditions, and with integrating acquired businesses with our existing businesses and our ability to achieve the benefits, growth prospects and synergies expected by such acquisitions; our significant indebtedness and the need to generate sufficient cash flows to service and repay such debt; the amount and frequency of our share repurchase programs; dependence on and risks associated with distributors and resellers of our products; dependence on senior management and our ability to attract and retain qualified personnel; involvement in legal proceedings; quarterly and annual fluctuations in operating results; our ability to accurately estimate customers’ demand and adjust our manufacturing and supply chain accordingly; our competitive performance and ability to continue achieving design wins with our customers, as well as the timing of any design wins; prolonged disruptions of our or our contract manufacturers’ manufacturing facilities, warehouses or other significant operations; our ability to improve our manufacturing efficiency and quality; our dependence on outsourced service providers for certain key business services and their ability to execute to our requirements; our ability to protect against cyber security threats and a breach of security systems; our ability to maintain or improve gross margin; our ability to protect our intellectual property and the unpredictability of any associated litigation expenses; compatibility of our software products with operating environments, platforms or third-party products; our ability to enter into satisfactory software license agreements; availability of third party software used in our products; use of open source code sources in our products; any expenses or reputational damage associated with resolving customer product warranty and indemnification claims; market acceptance of the end products into which our products are designed; our ability to sell to new types of customers and to keep pace with technological advances; our compliance with privacy and data security laws; the COVID-19 pandemic; fluctuations in foreign exchange rates; our provision for income taxes and overall cash tax costs, legislation that may impact our overall cash tax costs and our ability to maintain tax concessions in certain jurisdictions; and other events and trends on a national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature. We are not obligated to repurchase any specific amount of shares of common stock, and the stock repurchase programs may be suspended or terminated at any time.

Our filings with the SEC, which you may obtain for free at the SEC’s website at, discuss some of the important risk factors that may affect our business, results of operations and financial condition. Actual results may vary from the estimates provided. We undertake no intent or obligation to publicly update or revise any of the estimates and other forward-looking statements made in this announcement, whether as a result of new information, future events or otherwise, except as required by law.

Ji Yoo
Broadcom Inc.
Investor Relations
[email protected]


(1) The Company is not readily able to provide a reconciliation of the projected non-GAAP financial information presented to the relevant projected GAAP measure without unreasonable effort.
Fiscal Quarter EndedThree Fiscal Quarters Ended
July 30,April 30,July 31,July 30,July 31,
Net revenue$8,876$8,733$8,464$26,524$24,273
Cost of revenue:
Cost of revenue2,2722,1772,0776,8235,958
Amortization of acquisition-related intangible assets4394417051,4152,142
Restructuring charges1134
Total cost of revenue2,7122,6182,7838,2418,104
Gross margin6,1646,1155,68118,28316,169
Research and development1,3581,3121,2553,8653,722
Selling, general and administrative3884383231,1741,012
Amortization of acquisition-related intangible assets3503483591,0461,154
Restructuring and other charges2129723142
Total operating expenses2,3082,1071,9446,3165,930
Operating income3,8564,0083,73711,96710,239
Interest expense(406)(405)(406)(1,217)(1,331)
Other income (expense), net1241136380(94)
Income before income taxes3,5743,7163,33711,1308,814
Provision for income taxes271235263572678
Net income3,3033,4813,07410,5588,136
Dividends on preferred stock(75)(224)
Net income attributable to common stock$3,303$3,481$2,999$10,558$7,912
Net income per share attributable to common stock:
Diluted (1)$7.74$8.15$7.15$24.73$18.70
Weighted-average shares used in per share calculations:
Diluted (1)427427430427435
Stock-based compensation expense:
Cost of revenue$61$50$37$148$109
Research and development4443542591,065788
Selling, general and administrative12410977320249
Total stock-based compensation expense$629$513$373$1,533$1,146
(1) All outstanding shares of Mandatory Convertible Preferred Stock were converted into our common stock 
during the fiscal quarter ended October 30, 2022.
Fiscal Quarter EndedThree Fiscal Quarters Ended
July 30,April 30,July 31,July 30,July 31,
Gross margin on GAAP basis$6,164$6,115$5,681$18,283$16,169
Amortization of acquisition-related intangible assets4394417051,4152,142
Stock-based compensation expense615037148109
Restructuring charges1134
Acquisition-related costs310
Gross margin on non-GAAP basis$6,665$6,606$6,427$19,849$18,434
Research and development on GAAP basis$1,358$1,312$1,255$3,865$3,722
Stock-based compensation expense4443542591,065788
Acquisition-related costs1
Research and development on non-GAAP basis$913$958$996$2,800$2,934
Selling, general and administrative expense on GAAP basis$388$438$323$1,174$1,012
Stock-based compensation expense12410977320249
Acquisition-related costs48931418357
Selling, general and administrative expense on non-GAAP basis$216$236$232$671$706
Total operating expenses on GAAP basis$2,308$2,107$1,944$6,316$5,930
Amortization of acquisition-related intangible assets3503483591,0461,154
Stock-based compensation expense5684633361,3851,037
Restructuring and other charges2129723142
Acquisition-related costs49931418357
Total operating expenses on non-GAAP basis$1,129$1,194$1,228$3,471$3,640
Operating income on GAAP basis$3,856$4,008$3,737$11,967$10,239
Amortization of acquisition-related intangible assets7897891,0642,4613,296
Stock-based compensation expense6295133731,5331,146
Restructuring and other charges2139823446
Acquisition-related costs49931718367
Operating income on non-GAAP basis$5,536$5,412$5,199$16,378$14,794
Interest expense on GAAP basis$(406)$(405)$(406)$(1,217)$(1,331)
Loss on debt extinguishment112
Interest expense on non-GAAP basis$(406)$(405)$(406)$(1,217)$(1,219)
Other income (expense), net on GAAP basis$124$113$6$380$(94)
(Gains) losses on investments(2)1125(35)140
Other income, net on non-GAAP basis$122$124$26$345$41
Provision for income taxes on GAAP basis$271$235$263$572$678
Non-GAAP tax reconciling adjustments3854073151,366956
Provision for income taxes on non-GAAP basis$656$642$578$1,938$1,634
Net income on GAAP basis$3,303$3,481$3,074$10,558$8,136
Amortization of acquisition-related intangible assets7897891,0642,4613,296
Stock-based compensation expense6295133731,5331,146
Restructuring and other charges2139823446
Acquisition-related costs49931718367
Loss on debt extinguishment112
(Gains) losses on investments(2)1125(35)140
Non-GAAP tax reconciling adjustments(385)(407)(315)(1,366)(956)
Net income on non-GAAP basis$4,596$4,489$4,241$13,568$11,982
Weighted-average shares used in per share calculations – diluted on GAAP basis427427430427435
Non-GAAP adjustment (1)98686
Weighted-average shares used in per share calculations – diluted on non-GAAP basis436435436435441
Net income on non-GAAP basis$4,596$4,489$4,241$13,568$11,982
Interest expense4064054061,2171,219
Provision for income taxes on non-GAAP basis6566425781,9381,634
Amortization of purchased intangibles and right-of-use assets2121246472
Adjusted EBITDA$5,801$5,686$5,378$17,165$15,307
Net cash provided by operating activities$4,719$4,502$4,424$13,257$12,153
Purchases of property, plant and equipment(122)(122)(116)(347)(302)
Free cash flow$4,597$4,380$4,308$12,910$11,851
October 29,
Expected average diluted share count (2)2023
Weighted-average shares used in per share calculation – diluted on GAAP basis427
Non-GAAP adjustment (1)8
Weighted-average shares used in per share calculation – diluted on non-GAAP basis435
(1) Non-GAAP adjustment for the number of shares used in the diluted per share calculations excludes the impact of stock-based compensation
expense expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to
repurchase shares under the GAAP treasury stock method.(2) Excludes the effects of potential share repurchases.
July 30,October 30,
Current assets:
Cash and cash equivalents$12,055$12,416
Trade accounts receivable, net2,9142,958
Other current assets1,5221,205
Total current assets18,33318,504
Long-term assets:
Property, plant and equipment, net2,1802,223
Intangible assets, net4,6547,111
Other long-term assets2,8091,797
Total assets$71,595$73,249
Current liabilities:
Accounts payable$992$998
Employee compensation and benefits8311,202
Current portion of long-term debt1,119440
Other current liabilities4,4034,412
Total current liabilities7,3457,052
Long-term liabilities:
Long-term debt38,22239,075
Other long-term liabilities3,9494,413
Total liabilities49,51650,540
Stockholders’ equity:
Preferred stock
Common stock
Additional paid-in capital20,85521,159
Retained earnings1,1781,604
Accumulated other comprehensive income (loss)46(54)
Total stockholders’ equity22,07922,709
  Total liabilities and equity$71,595$73,249
Fiscal Quarter EndedThree Fiscal Quarters Ended
July 30,April 30,July 31,July 30,July 31,
Cash flows from operating activities:
Net income$3,303$3,481$3,074$10,558$8,136
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible and right-of-use assets8108101,0882,5253,368
Stock-based compensation6295133731,5331,146
Deferred taxes and other non-cash taxes(251)(316)(15)(1,140)55
Loss on debt extinguishment100
Non-cash interest expense3333329897
Changes in assets and liabilities, net of acquisitions and disposals:
  Trade accounts receivable, net13518537544(629)
  Accounts payable188(114)(352)(6)(383)
  Employee compensation and benefits18491321(382)8
  Other current assets and current liabilities(339)(165)(198)66610
  Other long-term assets and long-term liabilities(139)(179)(260)(482)(367)
Net cash provided by operating activities4,7194,5024,42413,25712,153
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired(17)(5)(17)(239)
Purchases of property, plant and equipment(122)(122)(116)(347)(302)
Purchases of investments(91)(197)(288)(200)
Sales of investments7420074200
Net cash provided by (used in) investing activities(144)(318)80(565)(539)
Cash flows from financing activities:
Proceeds from long-term borrowings1,935
Payments on debt obligations(260)(2,352)
Payments of dividends(1,901)(1,914)(1,736)(5,741)(5,250)
Repurchases of common stock – repurchase program(1,707)(2,806)(1,500)(5,701)(7,000)
Shares repurchased for tax withholdings on vesting of equity awards(460)(614)(292)(1,407)(1,181)
Issuance of common stock636360
Net cash used in financing activities(4,073)(5,278)(3,532)(13,053)(13,800)
Net change in cash and cash equivalents502(1,094)972(361)(2,186)
Cash and cash equivalents at beginning of period11,55312,6479,00512,41612,163
Cash and cash equivalents at end of period$12,055$11,553$9,977$12,055$9,977
Supplemental disclosure of cash flow information:
Cash paid for interest$348$397$290$1,106$989
Cash paid for income taxes$427$891$231$1,591$657

SOURCE Broadcom Inc.

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