Broadcom 2025 Q4 Earnings 97% Net Income Surge, Revenue Hits $18.02B

Broadcom (AVGO) delivered a robust Q4 2025 earnings report, surpassing expectations with 28.2% year-over-year revenue growth and 97% net income expansion. The company raised full-year guidance and signaled strong AI-driven demand, positioning itself as a leader in semiconductor and infrastructure software innovation.

Revenue

Broadcom’s total revenue surged to $18.02 billion in Q4 2025, reflecting a 28.2% year-over-year increase. The Semiconductor Solutions segment led growth, generating $11.07 billion in revenue, a 35% jump from the prior year. Infrastructure Software followed closely with $6.94 billion in revenue, up 19% year-over-year. These results underscore the company’s dual-engine strategy, leveraging AI semiconductors and enterprise software to drive top-line expansion.

Earnings/Net Income

The company’s profitability reached new heights, with net income surging 97% year-over-year to $8.52 billion, and EPS rising 95.7% to $1.80. This marks 11 consecutive years of profitability, highlighting Broadcom’s operational resilience and strategic execution. The EPS increase significantly outperformed market expectations, signaling strong earnings momentum.

Price Action

Broadcom’s stock price edged up 0.38% in the latest trading day, climbed 6.65% for the week, and surged 13.39% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Broadcom shares after its quarterly revenue growth and holding for 30 days has historically delivered exceptional returns. Over three years, the approach achieved a CAGR of 85.26%, with a total return of 528.06% compared to a benchmark of 67.12%. The strategy’s excess return of 460.94% highlights its outperformance, supported by a Sharpe ratio of 1.90 and a maximum drawdown of 0.00%, indicating a low-risk profile despite high returns.

CEO Commentary

Hock Tan, President and CEO, emphasized Broadcom’s Q4 2025 performance, driven by a 28% year-over-year revenue increase to $18 billion. AI semiconductor revenue surged 74% to $6.5 billion, with custom accelerators (XPUs) growing over 10-fold since 2019. Tan highlighted a $73 billion AI backlog, including $11 billion in TPU orders for Anthropic and $1 billion for a fifth XPU customer. He expressed optimism for 2026, citing strategic investments in advanced packaging and R&D for AI accelerators.

Guidance

Broadcom projected Q1 2026 revenue of $19.1 billion, a 28% year-over-year increase, with AI semiconductor revenue expected to double to $8.2 billion. Infrastructure software revenue is forecast at $6.8 billion (2% growth), while non-AI semiconductor revenue remains flat. Gross margins are anticipated to decline slightly.

Additional News

Broadcom announced a 10% increase in its quarterly dividend to $0.65 per share, payable on December 31, 2025. The company also extended its share repurchase program, reflecting confidence in its cash flow and long-term value. Separately, Broadcom secured a $10 billion custom AI chip order from OpenAI, set for 2026 delivery, further solidifying its position in the AI semiconductor market. The stock’s post-earnings dip to $400 was attributed to profit-taking and margin concerns, despite record revenue and upbeat guidance.