Broadcom Inc. (Nasdaq: AVGO) has announced its fiscal second quarter results for the period ended May 4, 2025, reporting record-breaking financial performance that underscores its strategic focus on AI semiconductor solutions and infrastructure software. The company achieved net revenue of \(15.004 billion, reflecting a robust 20% year-over-year increase from \)12.487 billion in Q2 FY2024. This growth was primarily fueled by a 46% surge in AI-related semiconductor revenue to over $4.4 billion, driven by high demand for AI networking, highlighting Broadcom’s leadership in the rapidly expanding AI semiconductor market.
In terms of profitability, Broadcom posted a GAAP net income of \(4.965 billion for the quarter, an impressive 134% increase compared to \)2.121 billion in the same quarter last year. On a non-GAAP basis, net income reached \(7.787 billion, a 44% rise from \)5.394 billion, translating to a GAAP diluted EPS of \(1.03 and non-GAAP diluted EPS of \)1.58. Adjusted EBITDA scaled to $10.001 billion, or 67% of revenue, up 35% year-over-year, showcasing the company’s efficient business model and cost management.
Broadcom’s operational effectiveness is further demonstrated by its strong free cash flow generation, with \(6.411 billion free cash flow achieved in Q2 FY2025, which constitutes 43% of revenue and represents a 44% increase year-over-year. This robust cash flow enabled Broadcom to return \)7 billion to shareholders through \(2.785 billion in cash dividends and \)4.216 billion in repurchases, including the elimination of 25.3 million shares, underscoring its commitment to shareholder value.
Segment-wise, semiconductor solutions generated \(8.408 billion or 56% of total revenue, with a 17% increase year-over-year, while infrastructure software revenue rose 25% to \)6.596 billion, accounting for 44% of total revenue. The company’s balance sheet remains strong, with cash and cash equivalents at \(9.472 billion at quarter end, and total liabilities at \)95.044 billion against shareholders’ equity of $69.586 billion.
Looking ahead, Broadcom forecasts third quarter FY2025 revenue of approximately $15.8 billion, a projected 21% year-over-year increase, with adjusted EBITDA expected to remain at or above 66% of revenue. This outlook, coupled with the record Q2 results, solidifies Broadcom’s position as a dominant force in semiconductor innovation, particularly in AI applications, cloud infrastructure, and software.
Broadcom’s recent earnings calls have highlighted sustained momentum in AI semiconductor revenue directly linked to hyperscale partner investments, with the company expecting continued acceleration in AI revenue growth into Q3 FY2025. This is consistent with broader sector trends emphasizing AI, cloud, and digital transformation as major growth drivers.
In summary, Broadcom’s Q2 FY2025 results demonstrate robust revenue growth driven by AI semiconductors and infrastructure software, strong margins, exceptional cash flow generation, and disciplined capital returns strategy. The company’s outlook suggests continued growth and profitability, strongly supported by secular trends in AI and cloud computing.
Source Document: SEC Filing Link