Broadcom (AVGO) Stock: Reports Strong Q4 Performance with 28% Revenue Growth, Driven by AI Semiconductor Surge

TLDR:

• Broadcom’s Q4 2025 revenue hits $18.02B, led by AI semiconductors.
• AI semiconductor sales surged 74%, driving Broadcom’s robust growth.
• Broadcom’s net income jumps 93%, with strong cash flow and dividends.
• Broadcom expects $19.1B in Q1 2026 revenue, fueled by AI and software.
• Broadcom’s AI focus positions it for continued market leadership in 2026.

Broadcom Inc. (AVGO) reported robust financial results for the fourth quarter of fiscal year 2025. The company’s revenue reached $18.02 billion, marking a 28% year-over-year increase. Broadcom’s net income also saw a significant boost, reaching $8.52 billion, nearly double the previous year. Broadcom closed for $406.37, marking a decrease of 1.60%.

Broadcom Inc., AVGO

These results were largely driven by strong demand in semiconductor solutions, particularly for AI technologies. The company’s performance underscores its growing position in the AI semiconductor market, which has become a major growth engine.

AI Semiconductor Revenue Fuels Growth

Broadcom’s semiconductor segment led the way, generating $11.07 billion in revenue, up 35% from the same period last year. The company cited a remarkable 74% year-over-year increase in AI semiconductor revenue, driven by custom AI accelerators and Ethernet AI switches. CEO Hock Tan emphasized that Broadcom anticipates continued momentum in the first quarter of fiscal year 2026, with AI semiconductor revenue expected to double to $8.2 billion. This surge highlights the increasing role of AI-driven technologies in Broadcom’s overall business strategy.

The company’s infrastructure software segment also posted strong growth, with revenue rising 19% to $6.94 billion. It was the semiconductor solutions segment that remained the dominant force in driving overall revenue growth. Broadcom’s shift toward AI and its investment in related technologies are central to the company’s future outlook.

Solid Cash Flow and Dividends Reflect Strong Financial Health

Broadcom generated $7.7 billion in cash from operations during the quarter. After capital expenditures of $237 million, the company reported free cash flow of $7.47 billion, or 41% of its revenue. CFO Kirsten Spears highlighted the company’s solid financial position, with a record $43 billion in adjusted EBITDA for fiscal year 2025. In line with this performance, Broadcom raised its quarterly dividend by 10% to $0.65 per share, reflecting the company’s strong cash flow generation and commitment to returning value to shareholders.

The company’s net income grew significantly, with GAAP earnings per share rising 93% to $1.74, while non-GAAP EPS increased 37% to $1.95. These figures underscore Broadcom’s operational efficiency and the profitability generated by its diversified business model.

Fiscal Year 2026 Outlook: Revenue Growth and Continued Profitability

Broadcom has provided a strong revenue forecast for the first quarter of fiscal year 2026. The company expects revenue to reach approximately $19.1 billion, a 28% increase from the same period in the previous year.  Broadcom expects adjusted EBITDA to remain strong at 67% of projected revenue. This guidance reflects the company’s confidence in sustaining its growth trajectory, fueled by both its semiconductor solutions and infrastructure software segments.

Broadcom’s fiscal year 2025 performance sets a solid foundation for continued growth in 2026. With a focus on AI-driven innovation and strong cash flow generation, the company is poised to maintain its leadership in the semiconductor and infrastructure software markets.

The post Broadcom (AVGO) Stock: Reports Strong Q4 Performance with 28% Revenue Growth, Driven by AI Semiconductor Surge appeared first on CoinCentral.