Broadcom beats Q4 earnings estimates with strong AI, networking demand By Investing.com

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<p>SAN JOSE &#8211; Broadcom Inc. (NASDAQ:) has reported its fourth-quarter fiscal earnings, showcasing a robust performance with non-GAAP EPS at $11.06, which is a 1% beat on estimates and represents a 6.7% increase from the previous year. The company&#8217;s net revenues also saw an uplift, rising by 4.1% to reach $9.295 billion.</p>
<p>The semiconductor solutions segment of Broadcom saw a 3.3% annual increase, hitting $7.326 billion in revenue, buoyed by heightened demand from hyperscalers. Additionally, the generative AI segments contributed significantly to the top line, pulling in $1.5 billion primarily through sales of Ethernet solutions and custom AI accelerators.</p>
<p>Networking revenue was another area of strength for Broadcom, climbing 23% year over year to $3.1 billion. This surge was attributed to robust demand for networking hardware from hyperscalers, which offset declines noted in both storage connectivity and broadband sectors.</p>
<p>Infrastructure software continued to be a solid performer with a 7.1% annual increase in revenue, approaching the $2 billion mark. This was supported by strong renewal rates across its portfolios. Although there was a slight contraction in non-GAAP gross margin, adjusted EBITDA margin saw significant improvement.</p>
<p>Broadcom&#8217;s financial health remains sturdy with over $14 billion in cash reserves as of the end of October 2023, while total debt showed a marginal decrease from the end of July figures. Research &amp; Development (R&amp;D) spending fell slightly as a percentage of net revenues year-over-year to 10.1%, and Selling, General &amp; Administrative (SG&amp;A) expenses also dropped to 2.4%. The company&#8217;s free cash flow remained strong for the quarter at approximately $4.723 billion.</p>
<p><em>This article was generated with the support of AI and reviewed by an editor. For more information see our T&amp;C.</em></p>
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