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Broadcom Revenue in Q1 2023 Hits $8.91B, Beating Estimates

The News: Broadcom revenue for the first quarter of 2023 reached $8.91 billion, up 16 percent from $7.7 billion one year ago, as the semiconductor and infrastructure software vendor reported its latest earnings figures on March 2. The Q1 revenue total beat analyst estimates of $8.2 billion from Investing.com for the period ending January 29. Read the full Press Release from the Broadcom Inc. website.

Broadcom Revenue in Q1 2023 Hits $8.9B, Beating Estimates

Analyst Take: Broadcom’s revenue increase of 16 percent in Q1 of fiscal 2023 was a nice win for the company as it continued to see demand grow across its markets for networking, broadband, wireless semiconductor chips, and infrastructure software.

What is impressive in Broadcom’s latest earnings report is that these positive results are coming at a time of sustained growth for the company, even while many other tech and consumer enterprises are still experiencing challenging macroeconomic conditions around the world. Kudos here to Broadcom CEO and President Hock Tan, who continues to bring his energy and expertise to the company, along with the rest of his capable executive team, as they lead Broadcom into FY2023.

Here are Broadcom’s Q1 fiscal 2023 earnings results by the numbers:

  • Q1 2023 revenue of $8.91 billion, up 16 percent from $7.7 billion one year ago. The Q1 revenue figure topped analyst consensus estimates of $8.2 billion from Investing.com.
  • Q1 2023 non-GAAP net income of $4.48 billion, up 20 percent from $3.74 billion one year ago.
  • Q1 2023 non-GAAP earnings per diluted share (EPS) of $10.33 per share, up from $8.39 per share one year ago. The EPS beat analyst consensus estimates of $10.18 per diluted share from Investing.com.
  • Q1 2023 non-GAAP gross margin of $6.6 billion, up 13 percent from $5.82 billion one year ago.
  • Q1 2023 free cash flow of $3.9 billion, up 16 percent from $3.4 billion one year ago.

Broadcom Revenue by Market Segment in Q1 of 2023

Broadcom’s semiconductor solutions division brought in net revenue of $7.1 billion in Q1, up 21 percent from $5.9 billion one year ago. That represented 80 percent of the company’s revenue in Q1 2023, compared to 76 percent of the division’s revenue one year ago.

Broadcom’s infrastructure software division brought in net revenue of $1.8 billion in Q1, down one percent from $1.83 billion one year ago. That represented 20 percent of the company’s revenue in Q1 2023, down from 24 percent of its revenue one year ago.

Broadcom’s products fill a wide range of customer needs, from data centers to networking, enterprise software, broadband, wireless, storage and industrial uses. The company also offers software for enterprise, mainframes, and cyber security, while also focusing on automation, monitoring and security, smartphone components, telecoms and factory automation.

Broadcom Revenue Guidance for Q2 FY2023

As part of its Q1 earnings report, Broadcom provided earnings guidance for the second quarter of FY2023. Broadcom said it expects Q2 2023 revenue to total about $8.7 billion.

Broadcom Revenue Q1 Overview

There is a lot going on at Broadcom lately, including its continuing $61 billion acquisition push for virtualization and cloud computing software vendor, VMware, which was spun off by Dell Technologies in October of 2021. The acquisition is in process, but still not yet completed.

That deal is still being evaluated by regulators around the world, including in the U.S., Europe and elsewhere, but CEO Tan recently said he expects the acquisition to be finalized by November. There is still a long way to go before that deal is completed, however, but we say it would be wise to keep your eyes on Broadcom as the company continues to see robust demand and sales for its products and services. As we have said before, Broadcom’s enduring success is positioning this semiconductor and infrastructure software company in a good place for the future, even amid the tough markets being experienced by many other technology and consumer companies today.

Broadcom’s roots date back to technology giants AT&T and Bell Labs, Lucent Technologies, Hewlett-Packard, and Agilent. Over the years, Broadcom has been growing by acquisition, including deals for LSI, Brocade, CA Technologies, and Symantec, giving it a wider footprint in the tech sector that serves a broad range of customer needs.

CEO Tan and the rest of his leadership team are responding to the market with clear vision and are taking this company to a great position with diversification, a broad product line, and engineering prowess.

We believe it will be an interesting FY2023 for Broadcom and that it will be fascinating to track this company as it pursues its VMware acquisition and drives its business forward around the world.

Disclosure: Futurum Research is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.

Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum Research as a whole.

Other insights from Futurum Research:

Broadcom Announces Q4 and FY2022 Earnings

VMware Posts Solid Q2 Earnings Ahead of Broadcom Acquisition

The Main Scoop, Episode 06: Technology Investment Approaches for Top-Performing Companies

Author Information

Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.

From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.

A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.

An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.

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