Broadcom Inc. Announces Fourth Quarter and Fiscal Year 2025 Financial Results and Quarterly Dividend
Financial Highlights
- Revenue of $18,015 million for the fourth quarter, up 28 percent from the prior year period
- GAAP net income of $8,518 million for the fourth quarter; Non-GAAP net income of $9,714 million for the fourth quarter
- Adjusted EBITDA of $12,218 million for the fourth quarter, or 68 percent of revenue
- GAAP diluted EPS of $1.74 for the fourth quarter; Non-GAAP diluted EPS of $1.95 for the fourth quarter
- Cash from operations of $7,703 million for the fourth quarter, less capital expenditures of $237 million, resulted in $7,466 million of free cash flow, or 41 percent of revenue
- Quarterly common stock dividend increased by 10 percent from the prior quarter to $0.65 per share
- First quarter fiscal year 2026 revenue guidance of approximately $19.1 billion, an increase of 28 percent from the prior year period
- First quarter fiscal year 2026 Adjusted EBITDA guidance of 67 percent of projected revenue
Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its fourth quarter and fiscal year ended November 2, 2025, provided guidance for its first quarter of fiscal year 2026 and announced its quarterly dividend.
"In Q4, record revenue of $18.0 billion grew 28% year-over-year, driven primarily by AI semiconductor revenue increasing 74% year-over-year," said Hock Tan, President and CEO of Broadcom Inc. "We see the momentum continuing in Q1 and expect AI semiconductor revenue to double year-over-year to $8.2 billion, driven by custom AI accelerators and Ethernet AI switches. We forecast Q1'26 total revenue of $19.1 billion and adjusted EBITDA of 67%."
"In fiscal year 2025 adjusted EBITDA increased 35% year-over-year to a record $43.0 billion, and free cash flow was strong at $26.9 billion," said Kirsten Spears, CFO of Broadcom Inc. "Based on increased cash flows in fiscal year 2025, we are increasing our quarterly common stock dividend by 10% to $0.65 per share for fiscal year 2026. The target fiscal year 2026 annual common stock dividend of $2.60 per share is a record, and the fifteenth consecutive increase in annual dividends since we initiated dividends in fiscal 2011."
The Company's cash and cash equivalents at the end of the fiscal quarter were $16,178 million, compared to $10,718 million at the end of the prior fiscal quarter.
During the fourth fiscal quarter, the Company generated $7,703 million in cash from operations and spent $237 million on capital expenditures, resulting in $7,466 million of free cash flow.
On September 30, 2025, the Company paid a cash dividend of $0.59 per share, totaling $2,797 million.
The differences between the Company's GAAP and non-GAAP results are described generally under "Non-GAAP Financial Measures" below and presented in detail in the financial reconciliation tables attached to this release.
Fiscal Year 2025 Financial Highlights
GAAP
Non-GAAP
(Dollars in millions, except per share data)
FY 25
FY 24
Change
FY 25
FY 24
Change
Net revenue
$63,887
$51,574
+24%
$63,887
$51,574
+24%
Net income
$23,126
$5,895
+292%
$33,728
$23,733
+42%
Earnings per common share - diluted
$4.77
$1.23
+288%
$6.82
$4.87
+40%
(Dollars in millions)
FY 25
FY 24
Change
Cash flow from operations
$27,537
$19,962
+38%
Adjusted EBITDA
$43,004
$31,897
+35%
Free cash flow
$26,914
$19,414
+39%
(Dollars in millions)
FY 25
FY 24
Change
Net revenue by segment
Semiconductor solutions
$36,858
$30,096
+22%
Infrastructure software
$27,029
$21,478
+26%
Total net revenue
$63,887
$51,574
+24%
First Quarter Fiscal Year 2026 Business Outlook
Based on current business trends and conditions, the outlook for the first quarter of fiscal year 2026, ending February 1, 2026, is expected to be as follows:
- First quarter revenue guidance of approximately $19.1 billion; and
- First quarter Adjusted EBITDA guidance of 67 percent of projected revenue.
The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. The Company is not readily able to provide a reconciliation of projected Adjusted EBITDA to projected net income without unreasonable effort. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.
Quarterly Dividends
The Company's Board of Directors has approved a quarterly cash dividend of $0.65 per share. The dividend is payable on December 31, 2025 to stockholders of record at the close of business (5:00 p.m. Eastern Time) on December 22, 2025.
Financial Results Conference Call
Broadcom Inc. will host a conference call to review its financial results for the fourth quarter and fiscal year 2025 and to discuss the business outlook today at 2:00 p.m. Pacific Time.
To Listen via Internet: The conference call can be accessed live online in the Investors section of the Broadcom website at https://investors.broadcom.com/ (https://edge.prnewswire.com/c/link/?t=0&l=en&o=4577305-1&h=585945169&u=https%3A%2F%2Finvestors.broadcom.com%2F&a=https%3A%2F%2Finvestors.broadcom.com%2F) .
Replay: An audio replay of the conference call can be accessed for one year through the Investors section of Broadcom's website at https://investors.broadcom.com/ (https://edge.prnewswire.com/c/link/?t=0&l=en&o=4577305-1&h=585945169&u=https%3A%2F%2Finvestors.broadcom.com%2F&a=https%3A%2F%2Finvestors.broadcom.com%2F) .
Non-GAAP Financial Measures
The non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release. Broadcom believes non-GAAP financial information provides additional insight into the Company's on-going performance. Therefore, Broadcom provides this information to investors for a more consistent basis of comparison and to help them evaluate the results of the Company's on-going operations and enable more meaningful period to period comparisons.
In addition to GAAP reporting, Broadcom provides investors with net income, operating income, gross margin, operating expenses, cash flow and other data on a non-GAAP basis. This non-GAAP information excludes amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring and other charges, acquisition-related costs, including integration costs, non-GAAP tax reconciling adjustments, and other adjustments. Management does not believe that these items are reflective of the Company's underlying performance. Internally, these non-GAAP measures are significant measures used by management for purposes of evaluating the core operating performance of the Company, establishing internal budgets, calculating return on investment for development programs and growth initiatives, comparing performance with internal forecasts and targeted business models, strategic planning, evaluating and valuing potential acquisition candidates and how their operations compare to the Company's operations, and benchmarking performance externally against the Company's competitors. The exclusion of these and other similar items from Broadcom's non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent or unusual.
Free cash flow measures have limitations as they omit certain components of the overall cash flow statement and do not represent the residual cash flow available for discretionary expenditures. Investors should not consider presentation of free cash flow measures as implying that stockholders have any right to such cash. Broadcom's free cash flow may not be calculated in a manner comparable to similarly named measures used by other companies.
About Broadcom
Broadcom Inc. (NASDAQ: AVGO) is a global technology leader that designs, develops, and supplies a broad range of semiconductor, enterprise software and security solutions. Broadcom's category-leading product portfolio serves critical markets including cloud, data center, networking, broadband, wireless, storage, industrial, and enterprise software. Our solutions include service provider and enterprise networking and storage, mobile device and broadband connectivity, mainframe, cybersecurity, and private and hybrid cloud infrastructure. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, go to www.broadcom.com
Cautionary Note Regarding Forward-Looking Statements
This announcement contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning Broadcom. These statements include, but are not limited to, statements that address our expected future business and financial performance, our plans andexpectations with regard to our share repurchases, and other statements identified by words such as "will," "expect," "believe," "anticipate," "estimate," "should," "intend," "plan," "potential," "predict," "project," "aim," and similar words, phrases or expressions. These forward-looking statements are based on current expectations and beliefs of Broadcom's management, current information available to Broadcom's management, and current market trends and market conditions and involve risks and uncertainties that may cause actual results to differ materially from those contained in forward-looking statements. Accordingly, undue reliance should not be placed on such statements.
