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Broadcom Reports Significant Growth in Q2 2025 Financial Performance

PALO ALTO, Calif., June 5, 2025 – Broadcom Inc. (NASDAQ: AVGO), a prominent global player in semiconductor and infrastructure software solutions, released its financial results for the second quarter of fiscal year 2025, concluding on May 4, 2025. The outcomes reflect robust momentum in AI semiconductor solutions and infrastructure software, with a notable 20% year-over-year increase in revenue. This surge has positioned Broadcom to reiterate its commitment to delivering unparalleled value to shareholders through effective capital management and strategic growth.

Financial Highlights

For Q2 2025, Broadcom reported revenue totaling $15,004 million, a clear rise from $12,487 million in the previous year. The company’s GAAP net income more than doubled to $4,965 million, compared to $2,121 million in Q2 2024. Non-GAAP net income, which adjusts for various costs, reached $7,787 million, up from $5,394 million, highlighting a substantial 44% increase.

In terms of operational performance, Broadcom’s adjusted EBITDA soared to $10,001 million, representing 67% of revenue, marking a 35% rise from the previous year. This remarkable performance is underscored by a GAAP diluted earnings per share (EPS) of $1.03, up from $0.44, while non-GAAP diluted EPS saw an equivalent increase from $1.10 to $1.58.

Driving this growth was a staggering 46% rise in AI revenue, which surpassed $4.4 billion. Hock Tan, President and CEO, attributed this growth to strong demand for AI networking solutions, indicating optimism as the company forecasts further growth in AI semiconductor revenue for Q3 2025. "We expect to reach approximately $5.1 billion, marking our tenth consecutive quarter of growth supported by our hyperscale partners' investments in AI capabilities," said Tan.

Shareholder Returns

Continuing its trend of returning cash to shareholders, Broadcom declared a quarterly cash dividend of $0.59 per share. This decision underscores the company's commitment to delivering value to its investors. The dividend will be paid on June 30, 2025, to stockholders on record as of June 20, 2025. In addition to dividends, Broadcom repurchased and eliminated 25.3 million shares for $4,216 million during the quarter, further demonstrating its robust capital return strategy.

Q3 Expectations

Looking to the future, the company provided guidance for the third quarter of FY 2025, projecting revenue in the range of approximately $15.8 billion. Based on current trends, adjusted EBITDA is expected to be at least 66% of this projected revenue. This guidance reflects confidence in the ongoing demand for Broadcom's solutions amid evolving technology landscapes.

Kirsten Spears, CFO of Broadcom, emphasized the soundness of Broadcom's business model, highlighting, "The 20% year-over-year increase in consolidated revenue and a remarkable $6.4 billion in free cash flow affirm our ability to generate substantial cash and support continued shareholder value enhancement."

Broadcom’s impressive financial results not only reinforce its strong market position but also reflect the company's strategic focus on innovation and effective capital management. As the technological landscape continues to evolve, Broadcom’s commitment to advancing its semiconductor solutions aligns perfectly with industry demands, positioning the company for sustained growth in the coming quarters. With robust quarterly performance, investor confidence remains exceptionally high, offering a promising outlook for both the business and its stakeholders.

In summary, Broadcom Inc.’s second-quarter results for fiscal year 2025 pave the way for continued innovation and growth within the technology sector, while effectively managing shareholder returns through dividends and stock repurchases, solidifying its status as an influential player in the global technology landscape.