Broadcom (XSWX:AVGO) Operating Income: CHF26,350 Mil (TTM As of Apr. 2026)


XSWX:AVGO Broadcom Inc XSWX:AVGO
75 GF Score
Price CHF296.50
GF Value CHF258.64
Valuation Modestly Overvalued
! 2 Warning Signs
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What is Broadcom Operating Income?

Broadcom XSWX:AVGO +0.92% 75 Operating Income is CHF26,350 Mil as of Apr. 2026. GuruFocus rates XSWX:AVGO with a GF Score™ of 75/100 and a GF Value™ of CHF258.64 (Modestly Overvalued). The stock has 2 warning signs investors should review.

Broadcom's Operating Income for the three months ended in Apr. 2026 was CHF8,553 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was CHF26,350 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Broadcom's Operating Income for the three months ended in Apr. 2026 was CHF8,553 Mil. Broadcom's Revenue for the three months ended in Apr. 2026 was CHF17,474 Mil. Therefore, Broadcom's Operating Margin % for the quarter that ended in Apr. 2026 was 48.94%.

Good Sign:

Broadcom Inc operating margin is expanding. Margin expansion is usually a good sign.

Broadcom's 5-Year average Growth Rate for Operating Margin % was 12.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Broadcom's annualized ROC % for the quarter that ended in Apr. 2026 was 25.96%. Broadcom's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 1,600.90%.

Broadcom  (XSWX:AVGO) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Broadcom's annualized ROC % for the quarter that ended in Apr. 2026 is calculated as:

ROC % (Q: Apr. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2026 ) + Invested Capital (Q: Apr. 2026 ))/ count )
=34210.192 * ( 1 - 8.09% )/( (119875.126 + 122330.032)/ 2 )
=31442.5874672/121102.579
=25.96 %

where

Invested Capital(Q: Jan. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=134121.428 - 3057.346 - ( 11188.956 - max(0, 13308.495 - 25309.743+11188.956))
=119875.126

Invested Capital(Q: Apr. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=141104.841 - 3315.796 - ( 15459.013 - max(0, 14855.711 - 33246.959+15459.013))
=122330.032

Note: The Operating Income data used here is four times the quarterly (Apr. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Broadcom's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2026  Q: Apr. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=34358.264/( ( (2051.651 + max(-1780.097, 0)) + (2195.829 + max(44.893000000005, 0)) )/ 2 )
=34358.264/( ( 2051.651 + 2240.722 )/ 2 )
=34358.264/2146.1865
=1,600.90 %

where Working Capital is:

Working Capital(Q: Jan. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(6678.324 + 2338.203 + 734.142) - (3057.346 + 7253.007 + 1220.413)
=-1780.097

Working Capital(Q: Apr. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(8529.708 + 3408.733 + 1188.488) - (3315.796 + 7905.929 + 1860.311)
=44.893000000005

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Broadcom's Operating Margin % for the quarter that ended in Apr. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Apr. 2026 )/Revenue (Q: Apr. 2026 )
=8552.548/17474.481
=48.94 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Broadcom Operating Income Related Terms

Broadcom Operating Income Historical Data

* Premium members only.

The historical data trend for Broadcom's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Broadcom Operating Income Chart

Broadcom Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7,997.04 14,209.16 14,863.48 12,916.06 20,794.81

Broadcom Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4,931.34 4,852.52 6,104.07 6,840.94 8,552.55
XSWX:AVGO
75GF Score
Broadcom Inc XSWX:AVGO
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Broadcom Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF26,350 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of CHF26,350 Mil mean?
Broadcom (XSWX:AVGO) has a Operating Income of CHF26,350 Mil as of Apr. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Broadcom and its competitors.
Is Broadcom's Operating Income too high?
Broadcom's current Operating Income is CHF26,350 Mil. Overall, Broadcom has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Broadcom's Operating Income compare to MU and AMD?
Broadcom's Operating Income of CHF26,350 Mil can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Semiconductors company?
A good Operating Income depends on the Semiconductors industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Broadcom and its competitors. Broadcom's current Operating Income is CHF26,350 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Broadcom stock overvalued right now?
Based on GuruFocus' analysis, Broadcom (XSWX:AVGO) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF258.64, compared to a current price of CHF296.50 — trading 14.6% above its estimated fair value. The current Operating Income is CHF26,350 Mil. Broadcom's overall GF Score™ is 75/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Broadcom (XSWX:AVGO), the current Operating Income is CHF26,350 Mil as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Broadcom (XSWX:AVGO) Overvalued in 2026?

Based on GuruFocus' analysis, Broadcom stock appears to be overvalued. The current stock price of CHF296.50 is trading 14.6% above its estimated GF Value™ of CHF258.64. GuruFocus considers Broadcom to be Modestly Overvalued.

Key valuation signals for XSWX:AVGO:

  • Operating Income: CHF26,350 Mil
  • GF Value™: CHF258.64 vs. price of CHF296.50 (14.6% above fair value)
  • GF Score™: 75/100 with 2 warning signs

No single metric tells the full story. See the XSWX:AVGO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Broadcom Business Description

Address 3421 Hillview Avenue, Palo Alto, CA, USA, 94304
Broadcom is one of the largest semiconductor companies in the world and has also expanded into infrastructure software. Its semiconductors primarily serve computing and networking, with custom AI accelerators now accounting for the bulk of the business. It is primarily a fabless designer, but holds some manufacturing in-house, such as for its best-of-breed film bulk acoustic resonator filters that sell into the Apple iPhone. In software, it sells virtualization, infrastructure, and security software to large enterprises, financial institutions, and governments. Broadcom is the product of consolidation. Its businesses are an amalgamation of former companies like legacy Broadcom and Avago Technologies in chips, as well as VMware, Brocade, CA Technologies, and Symantec in software.
75GF Score

Get the complete analysis for XSWX:AVGO

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF296.50
Price
CHF258.64
GF Value