Broadcom Q1 2025 Earnings Report
Key Takeaways
Broadcom Inc. posted record Q1 2025 revenue of $14.92 billion, up 25% year-over-year. AI semiconductor revenue surged 77% to $4.1 billion, while infrastructure software revenue grew 47% to $6.7 billion. GAAP net income reached $5.50 billion, and non-GAAP net income totaled $7.82 billion. Adjusted EBITDA was $10.08 billion, or 68% of revenue. Free cash flow stood at $6.01 billion, representing 40% of revenue. The company issued a quarterly dividend of $0.59 per share and provided a strong outlook for Q2 2025.
Revenue increased 25% year-over-year to $14.92 billion.
AI semiconductor revenue grew 77% to $4.1 billion.
GAAP EPS of $1.14, with non-GAAP EPS of $1.60.
Free cash flow reached $6.01 billion, 40% of revenue.
Broadcom
Broadcom
Broadcom Revenue by Segment
Forward Guidance
Broadcom expects continued revenue growth in Q2 2025, with projected revenue of approximately $14.9 billion and adjusted EBITDA around 66% of revenue. AI semiconductor sales are expected to remain strong at $4.4 billion as demand for AI data center infrastructure continues to grow.
Positive Outlook
- Revenue guidance of approximately $14.9 billion for Q2 2025.
- Continued strength in AI semiconductor revenue, projected at $4.4 billion.
- Infrastructure software revenue growth remains strong.
- High adjusted EBITDA margin of approximately 66%.
- Strong cash flow and financial position.
Challenges Ahead
- Potential macroeconomic challenges could impact demand.
- Regulatory scrutiny over acquisitions and market position.
- Increasing competition in AI and semiconductor markets.
- Ongoing supply chain risks and cost fluctuations.
- Rising R&D and capital expenditures may affect short-term profitability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income