Broadcom(AVGO) - 2026 Q1 - Quarterly Results

Financial Performance - First quarter revenue reached $19.3 billion, a 29% increase year-over-year[4] - GAAP net income for Q1 was $7.3 billion, a 34% increase from the previous year[4] - Adjusted EBITDA for Q1 was $13.1 billion, representing 68% of revenue, with a similar expectation for Q2[4] - Operating income for the quarter was $8,563 million, up 14.0% from $7,508 million in the previous quarter and 37.0% from $6,260 million year-over-year[23] - Net income for the quarter was $7,349 million, a decrease of 13.8% from $8,518 million in the previous quarter but an increase of 33.5% from $5,503 million in the same quarter last year[23] - Adjusted EBITDA for the quarter was $13,128 million, an increase from $12,218 million in the previous quarter and $10,083 million in the same quarter last year[26] Cash Flow and Dividends - Free cash flow for Q1 was $8.0 billion, accounting for 41% of revenue[4] - Free cash flow for the quarter was $8,010 million, compared to $7,466 million in the previous quarter and $6,013 million in the same quarter last year[26] - The company announced a quarterly dividend of $0.65 per share, totaling $3.1 billion for Q1[4] - Payments of dividends increased to $3,086 million from $2,797 million, representing a rise of 10.3%[32] Revenue Segmentation - AI semiconductor revenue was $8.4 billion, growing 106% year-over-year, with expectations of $10.7 billion in Q2[3] - Semiconductor solutions revenue was $12.5 billion, a 52% increase year-over-year[5] - Guidance for Q2 revenue is approximately $22.0 billion, reflecting a 47% year-over-year increase[7] Assets and Liabilities - Total current assets increased to $32,062 million from $31,573 million in the previous quarter, driven by an increase in trade accounts receivable and inventory[30] - Total liabilities decreased slightly to $90,031 million from $89,800 million in the previous quarter, while total stockholders' equity decreased to $79,872 million from $81,292 million[30] Shareholder Returns - A new share repurchase program of up to $10 billion has been authorized through December 31, 2026[9] - The company repurchased $7,850 million in common stock under its repurchase program, indicating a significant investment in shareholder returns[32] Cash Management - Cash from operations for Q1 was $8.3 billion, up 35% from the prior year[5] - Net cash provided by operating activities increased to $8,260 million from $7,703 million, reflecting a growth of 7.2%[32] - Cash and cash equivalents at the end of the period decreased to $14,174 million from $16,178 million, a decline of 12.3%[32] - Cash paid for interest was $619 million, down from $699 million, showing a reduction of 11.5%[32] - Cash paid for income taxes increased to $782 million from $755 million, reflecting a rise of 3.6%[32] - The company experienced a net change in cash and cash equivalents of $(2,004) million, contrasting with an increase of $5,460 million in the previous quarter[32] - Total inventory increased by $692 million, compared to a decrease of $90 million in the previous quarter, indicating a shift in inventory management[32] Margins - Gross margin on a GAAP basis was $13,157 million, representing a gross margin percentage of approximately 68.1%, compared to 67.9% in the previous quarter and 68.0% in the same quarter last year[25]