Broadcom Reports Strong Q3 2023 Results with 5% Revenue Growth and Positive Q4 Outlook

Broadcom, a global technology leader, has announced its financial results for the third quarter of fiscal year 2023, ending on July 30, 2023. The company’s impressive performance reflects its continued strength in next-generation networking technologies and its ability to cater to the evolving demands of hyperscale customers.
Broadcom chipsetDuring the third quarter, Broadcom achieved consolidated revenue of $8.9 billion, marking a 5 percent increase in comparison to the same period the previous year. Adjusted EBITDA also exhibited growth, rising by 8 percent year-over-year to reach an impressive 65 percent of revenue. This financial achievement underscores Broadcom’s strategic positioning and its effective management of operational efficiency.

The revenue distribution showcases Broadcom’s diversified business segments. The Semiconductor solutions segment generated $6,941 million in revenue, experiencing a 5 percent increase, while the Infrastructure software business contributed $1,935 million in revenue, also marking a 5 percent growth.

Hock Tan, President and CEO of Broadcom, attributed the third quarter’s success to the rising demand for advanced networking technologies. He emphasized, “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.” Tan also provided insights into the company’s future prospects, stating, “Our fourth quarter outlook projects year-over-year growth, reflecting continued leadership in networking for generative AI.”

Kirsten Spears, CFO of Broadcom, highlighted the company’s strong financial performance and fiscal discipline, stating, “Consolidated revenue for the third quarter grew 5 percent year-over-year to $8.9 billion and adjusted EBITDA increased 8 percent year-over-year to 65 percent of revenue.” She also emphasized the company’s robust cash flow generation, revealing that Broadcom generated $4.6 billion in free cash flow during the third quarter, with expectations of solid cash flows continuing into Q4.

Looking ahead to the fourth quarter of fiscal year 2023, which ends on October 29, 2023, Broadcom’s outlook appears promising. The company has provided the following guidance for the quarter:

Fourth-quarter revenue is expected to be approximately $9.27 billion.

Fourth-quarter Adjusted EBITDA is projected to be approximately 65 percent of the anticipated revenue.

These projections indicate Broadcom’s confidence in maintaining its growth trajectory and continuing to provide innovative solutions that meet the evolving needs of the technology industry.

Broadcom’s ability to deliver consistent revenue growth and maintain its financial strength positions the company as a significant player in the technology landscape, as it continues to lead in networking solutions that power generative AI and drive the transformation of data centers.