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 Q2 2025
Broadcom (AVGO) , a global tech company specializing in semiconductors and infrastructure software, released its Q2 fiscal 2025 financial results, shared its Q3 outlook, and announced its latest dividend. While earnings and revenue slightly exceeded estimates, investor expectations were higher and not fully met.
Highlights:
- Q2 revenue: $15 billion, up 20% year-over-year
- Net income: $4.97 billion (GAAP), $7.79 billion (Non-GAAP)
- Adjusted EBITDA: $10 billion, 67% of revenue
- Earnings per share (EPS): $1.03 (GAAP), $1.58 (Non-GAAP)
- Free cash flow: $6.41 billion, 43% of revenue
- Dividend: $0.59 per share
- Stock repurchases: 25.3 million shares for $4.22 billion
Guidance
Broadcom expects third-quarter fiscal 2025 revenue to be around $15.8 billion, with adjusted EBITDA reaching at least 66% of revenue. These figures are estimates based on current business trends, and actual results may differ. These estimates come slightly above analysts’ average estimate.
Board Statements
President and CEO of Broadcom, Hock Tan, stated that the company achieved record second-quarter revenue, driven by continued momentum in AI semiconductor solutions and VMware.
AI-related revenue grew 46% year-over-year, exceeding $4.4 billion, fueled by strong demand for AI networking. Tan projected that AI semiconductor revenue would accelerate further in Q3 to reach $5.1 billion, marking ten consecutive quarters of growth as hyperscale partners continue to invest.
Chief Financial Officer Kirsten Spears highlighted that consolidated revenue increased 20% year-over-year to a record $15.0 billion. Adjusted EBITDA rose 35% year-over-year to $10.0 billion, reflecting Broadcom’s robust business model. Spears also noted that free cash flow hit a record $6.4 billion, up 44% from the previous year. Consistent with Broadcom’s commitment to returning excess cash to shareholders, the company distributed $7.0 billion in the second quarter, including $2.8 billion in cash dividends and $4.2 billion in stock repurchases.
Impact on the Stock Market
Broadcom’s stock declined about 3% following its Q2 2025 earnings report, despite beating revenue and profit estimates. Investors had high expectations, particularly around AI-driven growth, but concerns over non-AI semiconductor weakness and regulatory uncertainties contributed to the slight downside.
While AI semiconductor revenue showed strong momentum, expanding 46% year-over-year, broader market conditions and valuation concerns weighed on near-term price action. Investors remain optimistic about the company’s long-term AI-driven growth but acknowledge potential short-term volatility.
