Broadcom Inc. Announces Fourth Quarter and Fiscal Year 2025 Financial Results and Quarterly Dividend
Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops, and supplies semiconductor and infrastructure software solutions, reported its fourth-quarter and fiscal-year 2025 results, issued guidance for the first quarter of fiscal year 2026, and announced a quarterly dividend.
Key highlights for Q4 2025 include record revenue of $18.015 billion, up 28% versus the prior-year period. GAAP net income was $8.518 billion, while non-GAAP net income reached $9.714 billion. Adjusted EBITDA stood at $12.218 billion, representing 68% of revenue. GAAP diluted earnings per share (EPS) were $1.74, with non-GAAP diluted EPS of $1.95. Cash from operations totaled $7.703 billion in the quarter, and after investing $237 million in capital expenditures, free cash flow was $7.466 billion, equal to 41% of revenue.
The company also raised its quarterly common stock dividend by 10% to $0.65 per share. Broadcom provided a favorable outlook for the first quarter of fiscal 2026, projecting revenue of about $19.1 billion and Adjusted EBITDA of 67% of revenue.
CEO Hock Tan commented on Q4 momentum, noting AI semiconductor revenue increased 74% year over year and forecasting AI semiconductor revenue to double YoY in Q1’26 to about $8.2 billion, driven by custom AI accelerators and Ethernet AI switches. He also anticipated continued revenue growth into Q1’26 with total revenue around $19.1 billion and Adjusted EBITDA at 67% of revenue.
CFO Kirsten Spears highlighted that fiscal year 2025 Adjusted EBITDA rose 35% YoY to a record $43.0 billion, with free cash flow totaling $26.9 billion. Reflecting stronger cash generation in 2025, Broadcom increased its quarterly dividend to $0.65 per share for fiscal 2026, aiming for a record target annual dividend of $2.60 per share—marking the fifteenth consecutive annual dividend increase since Broadcom began paying dividends in fiscal 2011.
Non-GAAP financial measures are provided to supplement GAAP results. A reconciliation between GAAP and non-GAAP figures is included in the supplemental financial data accompanying this release. Broadcom emphasizes that non-GAAP results exclude items such as acquisition-related amortization, stock-based compensation, restructuring charges, acquisition-related costs, and related adjustments. The company notes that these adjustments help management evaluate core operating performance and compare periods, though they should not be viewed as a substitute for GAAP results.
Fourth Quarter Fiscal Year 2025 Financial Highlights (GAAP and non-GAAP figures in millions, except per-share data):
- Net revenue: GAAP and non-GAAP both show $18,015 for Q4 2025, up from $14,054 in Q4 2024 (+28%).
- Net income: GAAP $8,518; non-GAAP $9,714 (Q4 2024: GAAP $4,324; non-GAAP $6,965).
- Earnings per share (diluted): GAAP $1.74; non-GAAP $1.95 (Q4 2024: $0.90 GAAP; $1.42 non-GAAP).
- Cash flow from operations: $7,703; free cash flow: $7,466; adjusted EBITDA: $12,218.
- Net revenue by segment: Semiconductor Solutions $11,072 (61% of revenue) and Infrastructure Software $6,943 (39%), totaling $18,015.
- Cash and cash equivalents at quarter end: $16,178, up from $10,718 at the end of the prior quarter.
Fiscal Year 2025 Financial Highlights (GAAP and non-GAAP figures in millions, except per-share data):
- Net revenue: $63,887 (GAAP and non-GAAP) up 24% from $51,574 in 2024.
- Net income: GAAP $23,126; non-GAAP $33,728 (2024: GAAP $5,895; non-GAAP $23,733).
- Earnings per share - diluted: GAAP $4.77; non-GAAP $6.82 (2024: GAAP $1.23; non-GAAP $4.87).
- Cash flow from operations: $27,537; free cash flow: $26,914; adjusted EBITDA: $43,004.
- Net revenue by segment: Semiconductor Solutions $36,858 (58%); Infrastructure Software $27,029 (42%); total $63,887.
First Quarter Fiscal Year 2026 Outlook
Broadcom expects the first quarter of fiscal 2026 to reflect continued momentum:
- Revenue: approximately $19.1 billion.
- Adjusted EBITDA: about 67% of projected revenue.
Dividend and Shareholder Details
The Board approved a quarterly cash dividend of $0.65 per share, payable on December 31, 2025, to stockholders of record as of the close of business (5:00 p.m. Eastern Time) on December 22, 2025.
Conference Call and Webcast
Broadcom will host a conference call today at 2:00 p.m. Pacific Time to review Q4 and FY2025 results and discuss the 2026 outlook. Access is available via the Broadcom Investors site, with a subsequent one-year replay available on the same site.
Notes on Forward-Looking Statements and Risks
This release contains forward-looking statements about Broadcom’s future performance, plans, and share repurchases. These statements involve risks and uncertainties that could cause actual results to differ materially, including macroeconomic conditions, geopolitical developments, customer concentration, supply chain dynamics, cybersecurity threats, product demand, industry cyclicality, and potential acquisitions. The company does not undertake to update these projections except as required by law.
Additional Information
Broadcom reiterates its non-GAAP disclosure conventions and provides reconciliations in the supplemental materials accompanying this release. For more details, visit Broadcom’s website or view the press release on PR Newswire.
Contact
Ji Yoo
Broadcom Inc.
Investor Relations
650-427-6000
investor.relations@broadcom.com
