Broadcom Inc.: quarterly revenue up 85.5%, yet shares still trade at 33.4 EV/EBITDA

2 сентября 2026 года Broadcom Inc. раскрыла результаты за третий квартал 2026 финансового года. Выручка выросла на 85,5% год к году до 29 591 млн долларов, чистая прибыль – на 216,1% до 13 088 млн долларов, а свободный денежный поток достиг 13 665 млн долларов. При такой динамике акции выглядят привлекательно, но только если рост продолжится: текущий мультипликатор EV/EBITDA в 33,4 раза заметно выше среднего за три года (38,9 раза), что оставляет мало места для ошибки.

Key takeaways

— Revenue grew 85.5% driven by AI accelerators and networking

— Net profit jumped 216% as operating margin expanded to 44.2%

— Free cash flow reached $13.7 billion, or 46% of revenue

— Leverage remains moderate: net debt is 0.9x EBITDA for the trailing twelve months

— Company maintains rapid pace: Q4 guidance implies 93% revenue growth

— Shares trade at a premium to their own three-year average EV/EBITDA

Attractiveness

Key figures, USD bn

Revenue grew 85.5% driven by AI accelerators and networking

In the third quarter of fiscal 2026, Broadcom Inc. revenue reached $29,591 million, up 85.5% year-over-year. The main driver was semiconductor solutions: sales grew 127% to $20,839 million, while infrastructure software rose 29% to $8,752 million.

CEO Hock Tan attributes the growth to strong demand for custom AI accelerators and networking. AI semiconductor revenue in the quarter was $16.7 billion, up 221% year-over-year and 54% quarter-over-quarter. The company expects this to accelerate to $21.7 billion in Q4, up 236% year-over-year.

Net profit jumped 216% as operating margin expanded to 44.2%

Net profit for the third quarter grew 216.1% to $13,088 million. GAAP operating margin reached 44.2%, up from 26.0% a year earlier. Operating income increased 171% to $15,955 million.

The margin expansion is driven by economies of scale and revenue mix: the share of high-margin semiconductor solutions rose from 57% to 70%. R&D expenses grew only 5% in absolute terms, providing significant operating leverage against an 85% revenue increase.

Free cash flow reached $13.7 billion, or 46% of revenue

Operating cash flow in the third quarter was $14,197 million, up 98% year-over-year. Capital expenditures were relatively modest at $532 million, resulting in free cash flow of $13,665 million, or 46% of revenue.

The company paid $3,103 million in dividends, fully covered by free cash flow. For the nine months, free cash flow reached $31,937 million, more than three times the dividend payments over the same period.

Leverage remains moderate: net debt is 0.9x EBITDA for the trailing twelve months

At the end of the quarter, Broadcom Inc. net debt stood at $50,283 million. The ratio of net debt to EBITDA for the trailing twelve months is 0.9x, a comfortable level for a company with such cash flow.

Net debt decreased by $1.1 billion during the quarter and by $7.1 billion over the trailing twelve months. The company continues to generate sufficient cash to service debt and fund growth without significantly increasing leverage.

Company maintains rapid pace: Q4 guidance implies 93% revenue growth

Broadcom Inc. expects Q4 fiscal 2026 revenue of approximately $34.8 billion, up 93% year-over-year. The company also guides non-GAAP operating margin of 66% of revenue.

This guidance confirms sustained demand for AI solutions and indicates continued acceleration: after 85.5% growth in Q3, Q4 is expected to grow 93%. This suggests the current growth cycle is not over.

Shares trade at a premium to their own three-year average EV/EBITDA

Current EV/EBITDA multiple is 33.4x versus the three-year average of 38.9x. Despite significant revenue and profit growth, shares trade below their historical average, suggesting potential undervaluation.

According to the portal's model, the upside to fair value is +37%. However, investors are paying for expectations: P/E for the trailing twelve months is 47.2x, leaving little room for disappointment in growth rates.

Valuation on the latest reported figures

Bottom line

Broadcom Inc.'s Q3 fiscal 2026 report shows exceptional momentum: revenue grew 85.5%, net profit 216%, and free cash flow reached 46% of revenue. Growth is driven not by one-offs but by sustained demand for AI semiconductors, as confirmed by Q4 guidance. Leverage is moderate, and dividends are fully covered by cash flow. However, shares trade at a premium to the market, and investors are paying for continued high growth rates. Our verdict is 'attractive': at current multiples and confirmed growth acceleration, the shares have potential, but require close monitoring of AI segment dynamics.