Broadcom 2025 Q4 Earnings Beats Expectations with 97% Net Income Growth

Broadcom (AVGO) delivered a robust Q4 2025 performance, surpassing revenue and earnings expectations. The company reported $18.02 billion in revenue, a 28.2% year-over-year increase, while guidance for Q1 2026 was raised to $19.1 billion, reflecting strong AI-driven momentum.

Revenue

The company’s $18.02 billion total revenue was driven by a 28.2% year-over-year increase, fueled by AI semiconductor demand. Semiconductor solutions contributed $11.07 billion, reflecting a 35% annual growth, while infrastructure software revenue grew 19% to $6.94 billion. These segments collectively underscored Broadcom’s strategic shift toward AI infrastructure and enterprise software.

Earnings/Net Income

Broadcom’s EPS surged 95.7% to $1.80, with net income rising 97% to $8.52 billion. The company maintained profitability for 11 consecutive years, demonstrating operational resilience. This performance highlights the effectiveness of its AI-focused business model.

Post-Earnings Price Action Review

The strategy of buying AVGO shares 30 days after a quarter-over-quarter revenue increase and holding for 30 days yielded a CAGR of 16.98%, underperforming the market by 17.17 percentage points. Despite minimal drawdown (0%) and a Sharpe ratio of 0.56, the 30.19% volatility signaled significant price swings.

Additional News

Broadcom announced a 10% quarterly dividend increase to $0.65 per share, extending its 15-year consecutive dividend growth streak. The company secured a $10 billion custom AI chip order from OpenAI, with deliveries starting in 2026, and expanded its AI chip backlog beyond $100 billion. Additionally, a multi-year partnership with Lloyds Banking Group aims to enhance digital infrastructure using Broadcom’s software solutions.