Broadcom (AVGO) Q1 2025 Earnings
How Did AVGO Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: −13.79%.
Did AVGO Beat Earnings? Q1 2025 Results
Yes. Broadcom reported Q1 2025 earnings of $1.60 a share on Mar 6, 2025, beating the $1.51 consensus estimate by 6.1%. Revenue was $14.9B against a $14.6B estimate.
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.
- 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
What Was Broadcom's Outlook in Q1 2025?
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
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $14.9B | $12.0B | +24.7% |
| Gross Profit | $10.1B | $7.4B | +37.6% |
| Operating Income | $6.3B | $2.1B | +200.5% |
| Net Income | $5.5B | $1.3B | +315.3% |
AVGO Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.