Key Highlights

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

Phase Four of Five

Broadcom (NASDAQ:AVGO) lands in phase 4, Capital Return, which follows the Operating Leverage phase in the scorecard's scheme. All three phase questions get a yes: revenue rose 49% over the last year, operating profit of USD 42.8B is climbing, and cash goes back to holders through buybacks and dividends. Fiscal 2021 revenue and operating profit of USD 27.4B and USD 8.5B grew to USD 63.9B and USD 25.5B in fiscal 2025, then to USD 89.1B and USD 42.8B on a trailing basis. Fiscal 2024 saw profit dip, with operating profit of USD 13.5B on revenue of USD 51.6B. Because the Business needs few physical assets, the scorecard treats operating profit as the best signal, and the phase call is built on it.

Moat and Growth

Top marks for width and a Growing direction make up the moat verdict. Switching costs score as strong, since custom chips are designed into platforms that run for years and enterprise estates handle production workloads on executable code only, so leaving would mean a migration. Intangible Assets score moderate because protection is spread over about 19,000 patents. Network effects, low-cost production and counter-positioning each score none. Growth is above average: revenue grew 48.7% over one year and 36.0% annualised over three, while earnings grew 99.7% over one year. To the question of whether the industry is growing, the scorecard answers yes, and it judges that room for new offerings is likely, which supports the growth score.

Management and Execution

Management scores Great at Broadcom (NASDAQ:AVGO), where Hock E. Tan has been in charge for 20 years and founder Henry Samueli still appears on the scorecard's management page. Revenue came in above estimates in 7 of the last 8 quarters, by 1.0% on average, the one miss being Q4 2024 at USD 14.1B, while Earnings Per Share topped estimates in all 8 by 2.6% on average. Quarterly earnings per share went from USD 1.42 in Q4 2024 to USD 3.32 in Q3 2026. On review sites, employees give the company 3.3 out of 5. Customer concentration and a single foundry are among the risks, and the next quarterly results will show whether the record of beats holds.

Where Things Stand

The scorecard credits compounding growth in custom chips and software for taking Broadcom (NASDAQ:AVGO) to USD 29.6B of quarterly revenue. Its picture is a company in phase 4 that returns capital, with a moat rated Wide and Growing, Great management, and a composite business score of 4.3 out of 5. Growth is called above average and not high, and the risk score is moderate. Those are the scorecard's views and not ours, and the sizable growth of the past year may not repeat.