Companies /Technology

Broadcom Inc

NASDAQ: AVGO Semiconductors
$339.27
▼ $5.45 (−1.58%) today
Markets closed · 2:35am ET

Q1 2025 Earnings

Reported Mar 6, 2025, 4:19pm ET · SEC source
$1.60
Beat +6.11%
EPS · est. $1.51
$14.9B
Beat +2.23%
Revenue · est. $14.6B
−6.2%
Trailing market
AVGO vs S&P since report
10 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−5%0+5%Mar 6Mar 7report 4:19pm ETearnings−0.0%+0.5%
−5%0+5%Mar 6Mar 7earnings−0.0%+0.5%
AVGO +0.5%S&P 500 −0.0%
−5%0+5%Mar 6Mar 7report 4:19pm ETearnings−0.0%+0.5%
−5%0+5%Mar 6Mar 7earnings−0.0%+0.5%
AVGO +0.5%NASDAQ −0.0%
−8%−4%0+4%Mar 5Mar 14report 4:19pm ETearnings−2.2%−0.3%
−8%−4%0+4%Mar 5Mar 14earnings−2.2%−0.3%
AVGO −0.3%S&P 500 −2.2%
−8%−4%0+4%Mar 5Mar 14report 4:19pm ETearnings−2.4%−0.3%
−8%−4%0+4%Mar 5Mar 14earnings−2.4%−0.3%
AVGO −0.3%NASDAQ −2.4%
+8.64%
Day of report
−5.39%
Next session
+0.30%
One week
−19.97%
30 days

S&P 500 over the same 30 days: −13.79%.

Did AVGO Beat Earnings? Q1 2025 Results

Broadcom opened fiscal 2025 on a record-setting note, posting first-quarter revenue of $14.92 billion, up 24.7% year-over-year and ahead of the $14.59 billion consensus estimate, while non-GAAP diluted EPS of $1.60 cleared the $1.51 analyst forecast by 6.11%. The primary engine behind the quarter was a 77% year-over-year surge in AI semiconductor revenue to $4.10 billion, fueled by hyperscale partners expanding their investments in custom AI accelerators and data center connectivity solutions, a dynamic that helped the broader semiconductor segment contribute $8.21 billion even as infrastructure software, powered by the maturing VMware integration, added $6.70 billion. Adjusted EBITDA reached a record $10.08 billion, representing 68% of revenue, reflecting the company's expanding margin profile. Even as some observers question whether AI-driven chip valuations have run ahead of fundamentals, Broadcom's forward guidance appears grounded, with management projecting Q2 revenue of approximately $14.90 billion and AI semiconductor revenue of $4.40 billion, pointing to continued momentum heading into the back half of the fiscal year.

Key Takeaways
  • AI semiconductor revenue grew 77% year-over-year to $4.1 billion driven by hyperscale partner investments in AI XPUs and connectivity
  • Infrastructure software revenue grew 47% year-over-year to $6.7 billion reflecting VMware integration and subscription transition
  • Adjusted EBITDA increased 41% year-over-year to a record $10.1 billion
  • Free cash flow grew 28% year-over-year to $6.0 billion
  • Declining restructuring charges as VMware integration matures

“Broadcom's record first quarter revenue and adjusted EBITDA were driven by both AI semiconductor solutions and infrastructure software. Q1 AI revenue grew 77% year-over-year to $4.1 billion and infrastructure software revenue grew 47% year-over-year to $6.7 billion.”

Broadcom CEO, on the earnings call

Forward Guidance & Outlook

Broadcom guided Q2 FY2025 revenue to approximately $14.9 billion, representing a 19% increase from the prior year period. Adjusted EBITDA is expected to be approximately 66% of projected revenue. The company expects continued strength in AI semiconductor revenue of $4.4 billion in Q2, driven by hyperscale partners continuing to invest in AI XPUs and connectivity solutions for AI data centers.

AVGO YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$5.0B$10.0B$15.0B$12.0B$14.9BRevenue$7.4B$10.1BGross Profit$2.1B$6.3BOperating Income$1.3B$5.5BNet Income
$0$5.0B$10.0B$15.0BRevenueGross ProfitOperating IncomeNet Income

AVGO Revenue by Segment

Semiconductor Solutions$8.2B+11.0%
Infrastructure Software$6.7B+47.0%

Figures from SEC filings and company reports. Not investment advice.