We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Broadcom Q4 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Fall
Read MoreHide Full Article
Key Takeaways
AVGO's fiscal Q4 earnings rose 37.3% Y/Y to $1.95 per share, topping the Zacks Consensus Estimate by 4.3%.
Fiscal Q4 revenues climbed 28.2% Y/Y to $18.02B, led by a 74% surge in AI-related semiconductor sales.
Broadcom sees Q1 AI revenues doubling Y/Y to $8.2B, driven by demand for AI accelerators and switches.
Broadcom (AVGO - Free Report) reported fourth-quarter fiscal 2025 non-GAAP earnings of $1.95 per share, beating the Zacks Consensus Estimate by 4.3% and jumping 37.3% year over year.
Revenues rallied 28.2% year over year to $18.02 billion and beat the Zacks Consensus Estimate by 2.94%.
AVGO shares dropped more than 5% at the time of writing this article. The stock has appreciated 128.8% in the trailing 12 months compared with the Zacks Computer & Technology sector’s return of 25.4%.
AVGO’s Q4 Details
Semiconductor solutions revenues (61.5% of net revenues) totaled $11.07 billion, up 35% year over year. The uptick was driven by the strong AI revenues, which surged 74% year over year. Infrastructure software revenues (38.5% of net revenues) soared 19% year over year to $6.94 billion.
The non-GAAP gross margin was 78% up 100 basis points (bps) year over year.
Research and development expenses, as a percentage of net revenues, decreased 150 bps year over year to 8.5%. SG&A expenses, as a percentage of net revenues, decreased 100 bps to 3.3%.
Adjusted EBITDA rose 34% year over year to $12.22 billion. The adjusted EBITDA margin was 67.8% up 310 bps year over year.
The non-GAAP operating margin expanded 350 bps year over year to 66.2%.
AVGO’s Balance Sheet & Cash Flow
As of Nov. 2, 2025, cash and cash equivalents were $16.18 billion compared with $10.72 billion as of Aug. 3, 2025.
Total debt (including the current portion of $3.15 billion) was $65.14 billion as of Aug. 3, 2025, compared with $64.23 billion as of Aug. 3, 2025.
Broadcom generated $7.70 billion in cash flow from operations compared with $7.17 billion in the previous quarter. The free cash flow was $7.47 billion compared with $7.02 billion in the prior quarter.
On Sept. 30, 2025, AVGO paid a cash dividend of 59 cents per share, totaling $2.80 billion. The company raised its quarterly dividend payout by 10% to 65 cents per share.
AVGO Offers Solid Q1 Guidance
For the first quarter of fiscal 2026, Broadcom expects revenues of $19.1 billion. AI revenues are expected to double year over year to $8.2 billion, driven by strong demand for custom AI accelerators and Ethernet AI switches.
The adjusted EBITDA margin is expected to be 67% for the first quarter of fiscal 2026.
Zacks Rank & Stocks to Consider
Currently, AVGO has a Zacks Rank #3 (Hold).
Advanced Energy Industries (AEIS - Free Report) , Amphenol (APH - Free Report) and Reddit (RDDT - Free Report) are some better-ranked stocks that investors can consider in the broader sector.
Image: Bigstock
Broadcom Q4 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Fall
Key Takeaways
Broadcom (AVGO - Free Report) reported fourth-quarter fiscal 2025 non-GAAP earnings of $1.95 per share, beating the Zacks Consensus Estimate by 4.3% and jumping 37.3% year over year.
Revenues rallied 28.2% year over year to $18.02 billion and beat the Zacks Consensus Estimate by 2.94%.
AVGO shares dropped more than 5% at the time of writing this article. The stock has appreciated 128.8% in the trailing 12 months compared with the Zacks Computer & Technology sector’s return of 25.4%.
AVGO’s Q4 Details
Semiconductor solutions revenues (61.5% of net revenues) totaled $11.07 billion, up 35% year over year. The uptick was driven by the strong AI revenues, which surged 74% year over year. Infrastructure software revenues (38.5% of net revenues) soared 19% year over year to $6.94 billion.
Broadcom Inc. Price and Consensus
Broadcom Inc. price-consensus-chart | Broadcom Inc. Quote
The non-GAAP gross margin was 78% up 100 basis points (bps) year over year.
Research and development expenses, as a percentage of net revenues, decreased 150 bps year over year to 8.5%. SG&A expenses, as a percentage of net revenues, decreased 100 bps to 3.3%.
Adjusted EBITDA rose 34% year over year to $12.22 billion. The adjusted EBITDA margin was 67.8% up 310 bps year over year.
The non-GAAP operating margin expanded 350 bps year over year to 66.2%.
AVGO’s Balance Sheet & Cash Flow
As of Nov. 2, 2025, cash and cash equivalents were $16.18 billion compared with $10.72 billion as of Aug. 3, 2025.
Total debt (including the current portion of $3.15 billion) was $65.14 billion as of Aug. 3, 2025, compared with $64.23 billion as of Aug. 3, 2025.
Broadcom generated $7.70 billion in cash flow from operations compared with $7.17 billion in the previous quarter. The free cash flow was $7.47 billion compared with $7.02 billion in the prior quarter.
On Sept. 30, 2025, AVGO paid a cash dividend of 59 cents per share, totaling $2.80 billion. The company raised its quarterly dividend payout by 10% to 65 cents per share.
AVGO Offers Solid Q1 Guidance
For the first quarter of fiscal 2026, Broadcom expects revenues of $19.1 billion. AI revenues are expected to double year over year to $8.2 billion, driven by strong demand for custom AI accelerators and Ethernet AI switches.
The adjusted EBITDA margin is expected to be 67% for the first quarter of fiscal 2026.
Zacks Rank & Stocks to Consider
Currently, AVGO has a Zacks Rank #3 (Hold).
Advanced Energy Industries (AEIS - Free Report) , Amphenol (APH - Free Report) and Reddit (RDDT - Free Report) are some better-ranked stocks that investors can consider in the broader sector.
Advanced Energy Industries, Amphenol and Reddit each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Advanced Energy Industries, Amphenol and Reddit is currently pegged at 33.4%, 38.7% and 38.6%, respectively.