Broadcom is a prominent global player in the semiconductor and infrastructure software sectors. Founded in 1961, the company has significantly expanded through various mergers and acquisitions, including its notable integration with Avago Technologies and the former Broadcom Corporation. Headquartered in Palo Alto, California, Broadcom serves diverse markets such as data centers, networking, software, broadband, wireless, storage, and industrial sectors, providing essential technology solutions that drive modern IT environments.
Known for its innovation and engineering prowess, Broadcom delivers critical technologies that support many of the world’s leading companies. Also, the company’s portfolio includes a broad range of products that facilitate connectivity and communication across different industries. Recent strategic acquisitions, such as VMware in 2023, have bolstered Broadcom’s market position, reinforcing its reputation as a leader in technological advancements and industry solutions.
Broadcom Fiscal Q1 2025
Broadcom (AVGO) announced its Q1 fiscal year 2025 financial results and quarterly dividend.
Revenue increased by 25% to $14.916 billion compared to last year. GAAP net income was $5.503 billion, and non-GAAP net income was $7.823 billion.
The company reported GAAP diluted EPS of $1.14 and non-GAAP diluted EPS of $1.60.
They generated $6.113 billion in cash from operations and had a free cash flow of $6.013 billion after capital expenses. Also, the quarterly dividend is $0.59 per share.
Highlights:
- Revenue: $14.916 billion, up 25% from last year
- GAAP net income: $5.503 billion
- Non-GAAP net income: $7.823 billion
- Adjusted EBITDA: $10.083 billion (68% of revenue)
- GAAP diluted EPS: $1.14
- Non-GAAP diluted EPS: $1.60
- Cash from operations: $6.113 billion
- Free cash flow: $6.013 billion (40% of revenue)
- Quarterly dividend: $0.59 per share
Guidance
Broadcom expects the following for the second quarter of fiscal year 2025, ending May 4, 2025:
- Revenue around $14.9 billion
- Adjusted EBITDA about 66% of revenue
These projections are based on current business trends and may change. The company notes that actual results could be different, and they are not obligated to update these projections unless required by law.
Board Statements
Hock Tan, President and CEO of Broadcom, announced that their first-quarter revenue and adjusted EBITDA reached record levels due to AI semiconductor solutions and infrastructure software. Q1 AI revenue increased 77% to $4.1 billion, and infrastructure software revenue grew 47% to $6.7 billion. Tan expects Q2 AI semiconductor revenue to be $4.4 billion as partners invest in AI data centers.
Kirsten Spears, CFO of Broadcom, reported that total revenue grew 25% to $14.9 billion, and adjusted EBITDA rose 41% to $10.1 billion. Free cash flow increased 28% to $6 billion.
Impact on the Stock Market
Broadcom’s strong earnings report had a big impact on the market. The company’s stock jumped 10% in pre-market trading. This positive reaction was due to better-than-expected financial results and optimistic guidance for the next quarter. The strong performance in AI semiconductor solutions and infrastructure software boosted investor confidence. As a result, Broadcom’s stock saw a significant increase, showing the market’s positive outlook on the company’s future.
