Broadcom (AVGO) Q3 2025 Earnings
How Did AVGO Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: +3.38%.
Did AVGO Beat Earnings? Q3 2025 Results
Yes. Broadcom reported Q3 2025 earnings of $1.69 a share on Sep 4, 2025, beating the $1.66 consensus estimate by 1.6%. Revenue was $16.0B against a $15.8B estimate.
Broadcom delivered a record-setting fiscal third quarter, with results that cleared Wall Street's bar on both top and bottom lines as <a href="https://247wallst.com/investing/2025/09/04/live-complete-coverage-of-broadcom-avgo-earnings-tonight/">investors watched closely</a> heading into the print. The chipmaker posted earnings of $1.69 per share against a consensus estimate of $1.66, a beat of 1.60%, while revenue came in at $15.95 billion, ahead of the $15.82 billion estimate by 0.82% and up 22% from the year-ago period. The headline driver was unmistakably AI: revenue from artificial intelligence products accelerated 63% year-over-year to $5.20 billion, fueled by surging demand for custom AI accelerators and networking silicon from hyperscale data center customers. Free cash flow reached a record $7.02 billion, representing 44% of revenue, underscoring the operating leverage the company is extracting from both its semiconductor segment and the ongoing VMware subscription transition. Looking ahead, Broadcom guided Q4 revenue to approximately $17.40 billion, implying 24% year-over-year growth, with CEO Hock Tan projecting AI semiconductor revenue to accelerate further to $6.20 billion, which would mark eleven consecutive quarters of AI revenue expansion. Analysts have since revised fair value estimates meaningfully higher in response to the results.
- AI revenue growth accelerated to 63% year-over-year to $5.2 billion
- Continued strength in custom AI accelerators and networking
- VMware subscription transition driving infrastructure software growth of 17% YoY
- Strong operating leverage driving Adjusted EBITDA margin of 67%
- Free cash flow up 47% year-over-year to a record $7.0 billion
“Broadcom achieved record third quarter revenue on continued strength in custom AI accelerators, networking and VMware. Q3 AI revenue growth accelerated to 63% year-over-year to $5.2 billion.”
Broadcom CEO, on the earnings call
What Was Broadcom's Outlook in Q3 2025?
Broadcom guided fourth quarter fiscal year 2025 revenue to approximately $17.4 billion, representing a 24% increase from the prior year period. Adjusted EBITDA is expected to be approximately 67% of projected revenue. The CEO specifically noted expectations for AI semiconductor revenue to accelerate to $6.2 billion in Q4, which would represent eleven consecutive quarters of AI revenue growth, as customers continue to strongly invest in AI infrastructure.
AVGO YoY Financials
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $16.0B | $13.1B | +22.0% |
| Gross Profit | $10.7B | $8.4B | +28.1% |
| Operating Income | $5.9B | $3.8B | +55.4% |
| Net Income | $4.1B | $983.8M | +320.8% |
AVGO Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.