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Aug 03, 2025
Broadcom Q3 2025 Earnings Report
Broadcom reported strong results in Q3 2025 driven by record AI accelerator and networking revenue.
Key Takeaways
Broadcom delivered a record-breaking Q3 2025 with revenue reaching nearly $16B, powered by robust demand in custom AI accelerators and networking. The company posted strong profitability and significant free cash flow generation.
Revenue reached $15.952 billion, a 22% increase YoY.
Net Income rose to $4.14 billion, reversing a loss from the prior year.
Free cash flow hit a record $7.024 billion.
AI revenue climbed to $5.2 billion in the quarter.
Revenue by Segment
Forward Guidance
Broadcom expects strong momentum to continue in Q4 2025 with significant AI revenue growth.
Positive Outlook
- Q4 revenue expected to reach $17.4 billion.
- AI semiconductor revenue projected to rise to $6.2 billion.
- Adjusted EBITDA expected to remain at 67% of revenue.
- Continued strength in VMware and networking segments.
- Ongoing strong investment from customers in AI.
Challenges Ahead
- No detailed GAAP guidance due to reconciliation limitations.
- Ongoing macroeconomic uncertainties may affect demand.
- Potential supply chain challenges in meeting rising AI demand.
- Integration risks with VMware acquisition.
- Higher operating costs associated with AI infrastructure build-out.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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