AVGO Q2 Earnings: AI Demand Fuels 22% YoY Revenue Growth and $17.4B Guidance

Broadcom (AVGO) Q2 CY2025 revenue up 22% YoY to $15.95 billion, beating estimates. Non-GAAP profit of $1.69 per share, 1.6% above consensus. Q3 CY2025 revenue guidance at $17.4 billion, 2.1% above estimates. CEO Hock Tan attributed growth to custom AI accelerators and VMware bookings. Management expects significant acceleration in AI-related revenue over the next year.

Broadcom (AVGO) reported strong financial results for the second quarter of 2025, with revenue surging to $15.95 billion, a 22% year-over-year increase. The company's non-GAAP profit per share was $1.69, 1.6% above analysts' consensus estimates. The company also provided guidance for Q3 CY2025 revenue at $17.4 billion, 2.1% above Wall Street's estimates.

CEO Hock Tan attributed the growth to custom AI accelerators and VMware bookings. He also expressed expectations for significant acceleration in AI-related revenue over the next year.

The company's operating margin improved to 36.9%, up from 29% in the same quarter last year, and the free cash flow margin increased to 44%, up from 36.7%. Inventory Days Outstanding (DIO) decreased to 38, down from 56 in the previous quarter.

Looking ahead, Broadcom expects revenue to grow 23.8% year-on-year in Q3 CY2025 and 21.3% over the next 12 months, according to sell-side analysts.

The stock remained flat at $306.15 immediately following the results.

References:
[1] https://finance.yahoo.com/news/no-surprises-broadcom-nasdaq-avgo-203107832.html
[2] https://www.tradingview.com/news/stockstory:6b5e5ee89094b:0-no-surprises-in-broadcom-s-nasdaq-avgo-q2-sales-numbers-provides-encouraging-quarterly-revenue-guidance/
[3] https://www.ainvest.com/news/broadcom-avgo-buy-q3-earnings-surging-ai-demand-2509/