Broadcom 2025 Q4 Earnings Net Income Surges 97% Amid AI-Driven Growth

Broadcom (AVGO) reported fiscal 2025 Q4 earnings on Dec 11, 2025, surpassing expectations with a 28.2% revenue increase to $18.02 billion and a 95.7% EPS jump to $1.80. The company raised its Q1 2026 guidance, projecting $19.1 billion in revenue and doubling AI semiconductor revenue to $8.2 billion.

Revenue

Driven by AI semiconductors and infrastructure software, Broadcom’s total revenue reached $18.02 billion in Q4 2025, up 28.2% year-over-year. Semiconductor solutions led the charge with $11.07 billion in revenue, reflecting a 35% growth, while infrastructure software contributed $6.94 billion, up 19% from the prior year. The AI semiconductor segment alone surged 74% year-over-year to $6.5 billion, underscoring the company’s strategic pivot toward AI-driven technologies.

Earnings/Net Income

Broadcom’s EPS soared 95.7% to $1.80 in Q4 2025, while net income nearly doubled to $8.52 billion, marking a 97.0% increase year-over-year. The company’s profitability has remained robust for 11 consecutive years, reflecting operational efficiency and strong demand across its diversified portfolio. This performance highlights Broadcom’s ability to capitalize on AI and infrastructure software growth.

Price Action

Post-earnings, Broadcom’s stock edged up 0.38% on the day, climbed 6.65% for the week, and surged 13.39% month-to-date. However, a strategy of buying shares 30 days after a revenue increase underperformed the market, with a CAGR of 16.98% versus the benchmark.

Post-Earnings Price Action Review

The strategy of buying Broadcom shares 30 days after a quarter-over-quarter revenue increase and holding for 30 days delivered moderate returns but underperformed the market. With a CAGR of 16.98%, trailing the benchmark by 17.17 percentage points, the approach offered minimal volatility (maximum drawdown of 0%) and a Sharpe ratio of 0.56, appealing to risk-averse investors. However, the 30.19% volatility highlighted significant price swings, suggesting caution for those seeking stability.

CEO Commentary

CEO Hock Tan emphasized AI’s accelerating momentum, citing a $73 billion backlog expected to deliver over 18 months. He highlighted strategic priorities, including expanding XPU customer base and investing in AI networking infrastructure like Tomahawk 6 switches. Tan expressed confidence in 2026, predicting AI revenue growth will “continue to accelerate” while non-AI semiconductors maintain stable demand.

Guidance

For Q1 2026, Broadcom projects consolidated revenue of $19.1 billion (28% YoY growth), with AI revenue doubling to $8.2 billion. Adjusted EBITDA is expected to reach 67% of revenue, while infrastructure software revenue is forecast to grow low double-digits. Supply chain constraints, particularly in advanced packaging and silicon, remain under active management.

Additional News

Broadcom announced a 10% increase in its quarterly dividend to $0.65 per share, marking the 15th consecutive annual raise since 2011. The company also extended its share repurchase program and reported $7.47 billion in free cash flow (41% of revenue). Meanwhile, AI semiconductor demand surged to $6.5 billion, driven by custom accelerators and Ethernet switches, with a $73 billion backlog expected to fuel 2026 growth.

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