Broadcom vs Microsoft: Business Model & Financial Comparison 2026
Broadcom · Technology / Semiconductors·Microsoft · Technology / Software - Infrastructure
Financial Comparison
| Metric | AVGOBroadcom | MSFTMicrosoft |
|---|---|---|
| Market Cap | $1.53T | $2.94T |
| Revenue (TTM) | $68.28B | $305.45B |
| Revenue Growth | 16.4% | 16.7% |
| Gross Margin | 76.7% | 68.6% |
| Operating Margin | 31.8% | 47.1% |
| Net Margin | 36.6% | 39.0% |
| Return on Equity | 33.4% | 34.4% |
| P/E (Trailing) | 62.9x | 24.8x |
| P/E (Forward) | 18.4x | 21.0x |
| Free Cash Flow | $25.50B | $53.64B |
| Cash | $11.11B | $89.46B |
| Total Debt | $40.46B | $123.28B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
Broadcom
Broadcom Inc. stands as a leading company in Technology. Generating $68.28 billion in annual revenue (growing 16.4% year-over-year) and carrying a market capitalization of $1.58 trillion, the company has cemented its position as a foundational player in the global Semiconductors landscape. Under the leadership of its leadership team, Broadcom Inc. continues to execute on a multi-year strategic vision that balances growth investment with sharehold…
Full Broadcom analysis →Microsoft
Microsoft stands as the world's leading enterprise software and cloud computing company. Generating $305.45 billion in annual revenue (growing 16.7% year-over-year) and carrying a market capitalization of $3.05 trillion, the company has cemented its position as a foundational player in the global Software - Infrastructure landscape. Under the leadership of Satya Nadella, Microsoft continues to execute on a multi-year strategic vision that balance…
Full Microsoft analysis →SWOT Analysis Comparison
Strengths
Broadcom
- With a market capitalization of $1.58T, Broadcom Inc. is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that sma
- Broadcom Inc.'s gross margin of 76.7% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 31.8% demonstrates discipl
- Revenue grew 16.4% year-over-year to $68.28B, indicating strong demand for Broadcom Inc.'s products and services and outperformance relative to many industry peers.
Microsoft
- With a market capitalization of $3.05T, Microsoft is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that smaller
- Microsoft's gross margin of 68.6% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 47.1% demonstrates disciplined
- Revenue grew 16.7% year-over-year to $305.45B, indicating strong demand for Microsoft's products and services and outperformance relative to many industry peers.
Weaknesses
Broadcom
- With a debt-to-equity ratio of 166.0, Broadcom Inc. carries significant debt relative to equity. While manageable given its cash flow, elevated leverage limits financial flexibility and increases vuln
Microsoft
- With 228,000 employees globally, Microsoft faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller, nimbler compe
- Windows consumer PC market has been structurally declining for a decade
- Azure still trails AWS in market share (22% vs 32%); gap may be difficult to close
Opportunities
Broadcom
- The rapid advancement of generative AI and large language models presents Broadcom Inc. with opportunities to automate operations, enhance products, and develop new AI-native services. Companies in Te
- Broadcom Inc. operates in the Semiconductors segment of the broader Technology sector, which represents a $5.0 trillion by 2027 (IDC Global Technology Market). Even modest share gains in this environm
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Broadco
Microsoft
- The rapid advancement of generative AI and large language models presents Microsoft with opportunities to automate operations, enhance products, and develop new AI-native services. Companies in Techno
- Microsoft operates in the Software - Infrastructure segment of the broader Technology sector, which represents a $5.0 trillion by 2027 (IDC Global Technology Market). Even modest share gains in this e
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Microso
Threats
Broadcom
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Broadcom Inc.'s revenue is not fully insulated from macroeconomic cycles, and a recession sc
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Broadcom Inc.'s bus
- The technology sector evolves at a pace where today's competitive advantages can erode quickly. New entrants with AI-native approaches, open-source alternatives, or disruptive business models could ch
Microsoft
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Microsoft's revenue is not fully insulated from macroeconomic cycles, and a recession scenar
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Microsoft's busines
- The technology sector evolves at a pace where today's competitive advantages can erode quickly. New entrants with AI-native approaches, open-source alternatives, or disruptive business models could ch
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Open Comparison ToolBroadcom vs Microsoft: FAQ
- Is Broadcom bigger than Microsoft?
- By market capitalization, Microsoft is larger at $2.94T vs Broadcom's $1.53T.
- Which has better profit margins — Broadcom or Microsoft?
- Microsoft has higher net profit margins (39.0%) compared to Broadcom (36.6%). Gross and operating margins are compared in the table above.
- What sectors do Broadcom and Microsoft operate in?
- Broadcom operates in the Technology sector (Semiconductors). Microsoft operates in the Technology sector (Software - Infrastructure).
- How does Broadcom's revenue compare to Microsoft's?
- Broadcom generates $68.28B in annual revenue (TTM) while Microsoft generates $305.45B. Microsoft is the larger company by revenue as of 2026.