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Consolidated Revenue: $64 billion for fiscal 2025, up 24% year over year.
AI Revenue: $20 billion for fiscal 2025, up 65% year over year.
Semiconductor Revenue: $37 billion for fiscal 2025, with Q4 revenue at $11.1 billion, up 35% year on year.
Infrastructure Software Revenue: $27 billion for fiscal 2025, with Q4 revenue at $6.9 billion, up 19% year on year.
Q4 Total Revenue: $18 billion, up 28% year on year.
Q4 Adjusted EBITDA: $12.2 billion, up 34% year on year.
Gross Margin: 77.9% for Q4.
Operating Income: $11.9 billion for Q4, up 35% year on year.
Free Cash Flow: $7.5 billion for Q4, representing 41% of revenue.
Cash and Cash Equivalents: $16.2 billion at the end of Q4.
Q1 Fiscal 2026 Revenue Guidance: $19.1 billion, up 28% year on year.
Q1 AI Semiconductor Revenue Guidance: $8.2 billion, up approximately 100% year on year.
Annual Dividend Increase: 10% increase to $2.60 per share for fiscal 2026.
Release Date: December 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Broadcom Inc (NASDAQ:AVGO) reported a record consolidated revenue of $64 billion for fiscal year 2025, marking a 24% year-over-year growth.
AI semiconductor revenue grew by 65% year-over-year to $20 billion, significantly contributing to the company’s overall growth.
The Infrastructure Software segment saw a 26% year-on-year revenue increase, driven by strong adoption of VMware Cloud Foundation.
The company secured a substantial $73 billion backlog in AI-related orders, expected to be delivered over the next 18 months.
Broadcom Inc (NASDAQ:AVGO) announced a 10% increase in its quarterly common stock cash dividend for fiscal 2026, reflecting strong cash flow generation.
Non-AI semiconductor revenue showed limited growth, with Q4 revenue up only 2% year-on-year, indicating challenges in non-AI segments.
The company anticipates a sequential decline in non-semiconductor revenue due to wireless seasonality.
Gross margins are expected to be impacted by a higher mix of AI revenue, which typically has lower margins due to component pass-through costs.
The non-GAAP tax rate is expected to increase from 14% to approximately 16.5% in fiscal year 2026, due to global minimum tax impacts.
Broadcom Inc (NASDAQ:AVGO) faces potential supply chain challenges, particularly in advanced packaging and silicon sourcing, as demand for AI components continues to rise.
Story Continues
Q: Hock, you mentioned a $73 billion backlog for AI over the next 18 months. Can you clarify if this means $50 billion-plus for fiscal ’26? Also, how do you see your XPU content evolving at your largest customer over the next few years? A: Yes, we have $73 billion in backlog for AI components like XPUs, switches, and DSPs, which we expect to ship over the next 18 months. This backlog is expected to grow as more orders come in. Regarding XPU content, while some customers may explore custom solutions, the rapid evolution of silicon technology makes it challenging for them to fully transition away from merchant solutions. We believe the concept of customer-owned tooling is overblown and unlikely to happen extensively.
Q: With TPUs being offered to other customers, do you see this as a substitution for ASICs or an expansion of the market? What are the financial implications? A: The move to TPUs is more of a substitution for GPUs rather than ASICs. Transitioning to custom AI accelerators is a long-term strategic move, whereas moving from GPU to TPU is more transactional. The financial implications are that while TPUs may replace some GPU demand, the strategic investment in custom accelerators will continue.
Q: Can you clarify the AI backlog of $73 billion over the next six quarters? Will this backlog grow as more orders come in? Do you have the necessary supply chain commitments to support this demand? A: The $73 billion backlog is a snapshot of our current orders, and we expect it to grow as more orders are placed. We have been addressing supply chain challenges, particularly in advanced packaging, by building a facility in Singapore. We are also working with TSMC to secure silicon supply, and currently, we do not face constraints.
Q: With the follow-on order and the fifth customer, are you delivering XPUs or full racks? How does this compare to Google’s approach? A: We are delivering system sales, which include key components beyond XPUs. This approach allows us to be responsible for the entire system, similar to Google’s strategy. Our system sales include a variety of components, and we certify the final product’s ability to run efficiently.
Q: How should we think about gross margins as AI revenue ramps up, especially with system sales? Will operating margins remain stable? A: AI revenue has a lower gross margin due to component pass-through costs, but we expect operating leverage to benefit us at the operating margin level. Gross margin percentages may decrease, but operating margin dollars will increase due to the scale of AI revenue growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.