Broadcom Inc. Announces Fourth Quarter and Fiscal Year 2025 Financial Results and Quarterly Dividend

PALO ALTO, Calif., Dec. 11, 2025 /PRNewswire/ -- Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its fourth quarter and fiscal year ended November 2, 2025, provided guidance for its first quarter of fiscal year 2026 and announced its quarterly dividend.

"In Q4, record revenue of $18.0 billion grew 28% year-over-year, driven primarily by AI semiconductor revenue increasing 74% year-over-year," said Hock Tan, President and CEO of Broadcom Inc. "We see the momentum continuing in Q1 and expect AI semiconductor revenue to double year-over-year to $8.2 billion, driven by custom AI accelerators and Ethernet AI switches. We forecast Q1'26 total revenue of $19.1 billion and adjusted EBITDA of 67%."

"In fiscal year 2025 adjusted EBITDA increased 35% year-over-year to a record $43.0 billion, and free cash flow was strong at $26.9 billion," said Kirsten Spears, CFO of Broadcom Inc. "Based on increased cash flows in fiscal year 2025, we are increasing our quarterly common stock dividend by 10% to $0.65 per share for fiscal year 2026. The target fiscal year 2026 annual common stock dividend of $2.60 per share is a record, and the fifteenth consecutive increase in annual dividends since we initiated dividends in fiscal 2011."

(1) The Company is not readily able to provide a reconciliation of the projected non-GAAP financial information presented to the relevant projected GAAP measure without unreasonable effort.

Fourth Quarter Fiscal Year 2025 Financial Highlights

GAAP

Non-GAAP

(Dollars in millions, except per share data)

Q4 25

Q4 24

Change

Q4 25

Q4 24

Change

Net revenue

18,015

14,054

+28

18,015

14,054

+28

Net income

8,518

4,324

+97

9,714

6,965

+39

Earnings per common share - diluted

1.74

0.90

+93

1.95

1.42

+37

(Dollars in millions)

Q4 25

Q4 24

Change

Cash flow from operations

7,703

5,604

+37

Adjusted EBITDA

12,218

9,089

+34

Free cash flow

7,466

5,482

+36

Net revenue by segment

(Dollars in millions)

Q4 25

Q4 24

Change

Semiconductor solutions

11,072

8,230

+35

Infrastructure software

6,943

5,824

+19

Total net revenue

18,015

100

14,054

100

The Company's cash and cash equivalents at the end of the fiscal quarter were $16,178 million, compared to $10,718 million at the end of the prior fiscal quarter.

During the fourth fiscal quarter, the Company generated $7,703 million in cash from operations and spent $237 million on capital expenditures, resulting in $7,466 million of free cash flow.

On September 30, 2025, the Company paid a cash dividend of $0.59 per share, totaling $2,797 million.

The differences between the Company's GAAP and non-GAAP results are described generally under "Non-GAAP Financial Measures" below and presented in detail in the financial reconciliation tables attached to this release.

Fiscal Year 2025 Financial Highlights

GAAP

Non-GAAP

(Dollars in millions, except per share data)

FY 25

FY 24

Change

FY 25

FY 24

Change

Net revenue

63,887

51,574

+24

63,887

51,574

+24

Net income

23,126

5,895

+292

33,728

23,733

+42

Earnings per common share - diluted

4.77

1.23

+288

6.82

4.87

+40

(Dollars in millions)

FY 25

FY 24

Change

Cash flow from operations

27,537

19,962

+38

Adjusted EBITDA

43,004

31,897

+35

Free cash flow

26,914

19,414

+39

Net revenue by segment

(Dollars in millions)

FY 25

FY 24

Change

Semiconductor solutions

36,858

30,096

+22

Infrastructure software

27,029

21,478

+26

Total net revenue

63,887

100

51,574

100

First Quarter Fiscal Year 2026 Business Outlook

Based on current business trends and conditions, the outlook for the first quarter of fiscal year 2026, ending February 1, 2026, is expected to be as follows:

The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. The Company is not readily able to provide a reconciliation of projected Adjusted EBITDA to projected net income without unreasonable effort. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

Quarterly Dividends

The Company's Board of Directors has approved a quarterly cash dividend of $0.65 per share. The dividend is payable on December 31, 2025 to stockholders of record at the close of business (5:00 p.m. Eastern Time) on December 22, 2025.

Financial Results Conference Call

Broadcom Inc. will host a conference call to review its financial results for the fourth quarter and fiscal year 2025 and to discuss the business outlook today at 2:00 p.m. Pacific Time.

To Listen via Internet: The conference call can be accessed live online in the Investors section of the Broadcom website at https://investors.broadcom.com/.

Replay: An audio replay of the conference call can be accessed for one year through the Investors section of Broadcom's website at https://investors.broadcom.com/.

Non-GAAP Financial Measures

The non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release. Broadcom believes non-GAAP financial information provides additional insight into the Company's on-going performance. Therefore, Broadcom provides this information to investors for a more consistent basis of comparison and to help them evaluate the results of the Company's on-going operations and enable more meaningful period to period comparisons.

In addition to GAAP reporting, Broadcom provides investors with net income, operating income, gross margin, operating expenses, cash flow and other data on a non-GAAP basis. This non-GAAP information excludes amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring and other charges, acquisition-related costs, including integration costs, non-GAAP tax reconciling adjustments, and other adjustments. Management does not believe that these items are reflective of the Company's underlying performance. Internally, these non-GAAP measures are significant measures used by management for purposes of evaluating the core operating performance of the Company, establishing internal budgets, calculating return on investment for development programs and growth initiatives, comparing performance with internal forecasts and targeted business models, strategic planning, evaluating and valuing potential acquisition candidates and how their operations compare to the Company's operations, and benchmarking performance externally against the Company's competitors. The exclusion of these and other similar items from Broadcom's non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent or unusual.

Free cash flow measures have limitations as they omit certain components of the overall cash flow statement and do not represent the residual cash flow available for discretionary expenditures. Investors should not consider presentation of free cash flow measures as implying that stockholders have any right to such cash. Broadcom's free cash flow may not be calculated in a manner comparable to similarly named measures used by other companies.

About Broadcom

Broadcom Inc. (NASDAQ: AVGO) is a global technology leader that designs, develops, and supplies a broad range of semiconductor, enterprise software and security solutions. Broadcom's category-leading product portfolio serves critical markets including cloud, data center, networking, broadband, wireless, storage, industrial, and enterprise software. Our solutions include service provider and enterprise networking and storage, mobile device and broadband connectivity, mainframe, cybersecurity, and private and hybrid cloud infrastructure. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, go to www.broadcom.com.

Cautionary Note Regarding Forward-Looking Statements

This announcement contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning Broadcom. These statements include, but are not limited to, statements that address our expected future business and financial performance, our plans and expectations with regard to our share repurchases, and other statements identified by words such as "will," "expect," "believe," "anticipate," "estimate," "should," "intend," "plan," "potential," "predict," "project," "aim," and similar words, phrases or expressions. These forward-looking statements are based on current expectations and beliefs of Broadcom's management, current information available to Broadcom's management, and current market trends and market conditions and involve risks and uncertainties that may cause actual results to differ materially from those contained in forward-looking statements. Accordingly, undue reliance should not be placed on such statements.

Particular uncertainties that could materially affect future results include risks associated with: global economic conditions and uncertainty; government regulations, trade restrictions and trade tensions; global political and economic conditions relating to our international operations; any loss of our significant customers and fluctuations in the timing and volume of significant customer demand; our dependence on contract manufacturing and outsourced supply chain; the slow or unsuccessful return on our investments, expansion of our business strategy or adoption of new business models; cyclicality in the semiconductor industry or in our target markets; dependence on senior management and our ability to attract and retain qualified personnel; our ability to protect against cybersecurity threats and a breach of security systems; our ability to accurately estimate customers' demand and adjust our manufacturing and supply chain accordingly; our dependency on a limited number of suppliers; prolonged disruptions of our, our customers' or our suppliers' facilities or other significant operations; our ability to maintain appropriate manufacturing capacity and quality; our ability to continue winning business in the semiconductor solutions industry; dependence on and risks associated with distributors and other channel partners of our products; ability of our software products to manage and secure IT infrastructures and environments; demand for our data center virtualization products and customer acceptance of our products, services and business strategy; compatibility of our software products with operating environments, platforms or third-party products; our ability to enter into satisfactory software license agreements; use of open source software in our products; sales to government customers; our ability to manage products and services lifecycles; our competitive performance; quarterly and annual fluctuations in operating results; our ability to maintain or improve gross margin; any acquisitions or dispositions we may make, such as delays, challenges and expenses associated with receiving governmental and regulatory approvals and satisfying other closing conditions, and with integrating acquired businesses with our existing businesses and our ability to achieve the benefits, growth prospects and synergies expected by such acquisitions; involvement in legal proceedings; our ability to protect our intellectual property and the unpredictability of any associated litigation expenses; any expenses or reputational damage associated with resolving customer product warranty and indemnification claims, or other undetected defects or bugs; our compliance with privacy and data security laws; corporate responsibility matters; our provision for income taxes and overall cash tax costs; our ability to maintain tax concessions in certain jurisdictions; potential tax liabilities as a result of acquiring VMware; our significant indebtedness and the need to generate sufficient cash flows to service and repay such debt; the amount and frequency of our stock repurchase program; and other events and trends on a national, regional, industry-specific and global scale, including those of a political, economic, business, competitive and regulatory nature. We are not obligated to repurchase any specific amount of shares of common stock, and the stock repurchase program may be suspended or terminated at any time.

Our filings with the SEC, which are available without charge at the SEC's website at https://www.sec.gov, discuss some of the important risk factors that may affect our business, results of operations and financial condition. Actual results may vary from the estimates provided. We undertake no intent or obligation to publicly update or revise any of the estimates and other forward-looking statements made in this announcement, whether as a result of new information, future events or otherwise, except as required by law.

Contact:

Ji Yoo

Broadcom Inc.

Investor Relations

650-427-6000

[email protected]

(AVGO-Q)

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED

(IN MILLIONS, EXCEPT PER SHARE DATA)

Fiscal Quarter Ended

Fiscal Year Ended

November 2,

August 3,

November 3,

November 2,

November 3,

2025

2024

2025

2024

Net revenue

18,015

15,952

14,054

63,887

51,574

Cost of revenue:

Cost of revenue

4,213

3,704

3,399

14,486

12,788

Amortization of acquisition-related intangible assets

1,545

1,519

1,602

6,031

6,023

Restructuring charges

254

Total cost of revenue

5,766

5,249

5,052

20,593

19,065

Gross margin

12,249

10,703

9,002

43,294

32,509

Research and development

2,981

3,050

2,234

10,977

9,310

Selling, general and administrative

1,107

1,072

1,010

4,211

4,959

Amortization of acquisition-related intangible assets

507

813

2,031

3,244

Restructuring and other charges

146

187

318

591

1,533

Total operating expenses

4,741

4,816

4,375

17,810

19,046

Operating income

7,508

5,887

4,627

25,484

13,463

Interest expense

(761)

(807)

(916)

(3,210)

(3,953)

Other income, net

122

205

455

406

Income from continuing operations before income taxes

6,869

5,285

3,763

22,729

9,916

Provision for (benefit from) income taxes

(1,649)

1,145

(442)

(397)

3,748

Income from continuing operations

8,518

4,140

4,205

23,126

6,168

Income (loss) from discontinued operations, net of income taxes

119

(273)

Net income

8,518

4,140

4,324

23,126

5,895

Basic income per share:

Income per share from continuing operations

1.80

0.88

0.89

4.91

1.33

Income (loss) per share from discontinued operations

0.03

(0.06)

Net income per share

1.80

0.88

0.92

4.91

1.27

Diluted income per share:

Income per share from continuing operations

1.74

0.85

0.87

4.77

1.29

Income (loss) per share from discontinued operations

0.03

(0.06)

Net income per share

1.74

0.85

0.90

4.77

1.23

Weighted-average shares used in per share calculations:

Basic

4,732

4,714

4,679

4,712

4,624

Diluted

4,889

4,860

4,828

4,853

4,778

Stock-based compensation expense included in continuing operations:

Cost of revenue

237

251

159

844

664

Research and development

1,456

1,573

839

5,020

3,460

Selling, general and administrative

502

498

316

1,704

1,546

Total stock-based compensation expense

2,195

2,322

1,314

7,568

5,670

BROADCOM INC.

FINANCIAL RECONCILIATION: GAAP TO NON-GAAP - UNAUDITED

(IN MILLIONS)

Fiscal Quarter Ended

Fiscal Year Ended

November 2,

August 3,

November 3,

November 2,

November 3,

2025

2024

2025

2024

Gross margin on GAAP basis

12,249

10,703

9,002

43,294

32,509

Amortization of acquisition-related intangible assets

1,545

1,519

1,602

6,031

6,023

Stock-based compensation expense

237

251

159

844

664

Restructuring charges

254

Acquisition-related costs

Gross margin on non-GAAP basis

14,039

12,499

10,814

50,245

39,459

Research and development on GAAP basis

2,981

3,050

2,234

10,977

9,310

Stock-based compensation expense

1,456

1,573

839

5,020

3,460

Acquisition-related costs

Research and development on non-GAAP basis

1,525

1,477

1,395

5,957

5,847

Selling, general and administrative expense on GAAP basis

1,107

1,072

1,010

4,211

4,959

Stock-based compensation expense

502

498

316

1,704

1,546

Acquisition-related costs

216

537

Selling, general and administrative expense on non-GAAP basis

593

567

608

2,291

2,876

Total operating expenses on GAAP basis

4,741

4,816

4,375

17,810

19,046

Amortization of acquisition-related intangible assets

507

813

2,031

3,244

Stock-based compensation expense

1,958

2,071

1,155

6,724

5,006

Restructuring and other charges

146

187

318

591

1,533

Acquisition-related costs

216

540

Total operating expenses on non-GAAP basis

2,118

2,044

2,003

8,248

8,723

Operating income on GAAP basis

7,508

5,887

4,627

25,484

13,463

Amortization of acquisition-related intangible assets

2,052

2,026

2,415

8,062

9,267

Stock-based compensation expense

2,195

2,322

1,314

7,568

5,670

Restructuring and other charges

154

213

369

667

1,787

Acquisition-related costs

216

549

Operating income on non-GAAP basis

11,921

10,455

8,811

41,997

30,736

Interest expense on GAAP basis

(761)

(807)

(916)

(3,210)

(3,953)

Loss on debt extinguishment

138

157

Interest expense on non-GAAP basis

(741)

(754)

(864)

(3,072)

(3,796)

Other income, net on GAAP basis

122

205

455

406

(Gains) losses on investments

(6)

Gain from sale of business

(163)

Other

(15)

Other income, net on non-GAAP basis

116

294

418

Provision for (benefit from) income taxes on GAAP basis

(1,649)

1,145

(442)

(397)

3,748

Non-GAAP tax reconciling adjustments (1)

3,231

223

1,506

5,888

(123)

Provision for income taxes on non-GAAP basis

1,582

1,368

1,064

5,491

3,625

Net income on GAAP basis

8,518

4,140

4,324

23,126

5,895

Amortization of acquisition-related intangible assets

2,052

2,026

2,415

8,062

9,267

Stock-based compensation expense

2,195

2,322

1,314

7,568

5,670

Restructuring and other charges

154

213

369

667

1,787

Acquisition-related costs

216

549

Loss on debt extinguishment

138

157

(Gains) losses on investments

(6)

Gain from sale of business

(163)

Other

(15)

Non-GAAP tax reconciling adjustments (1)

(3,231)

(223)

(1,506)

(5,888)

123

(Income) loss from discontinued operations, net of income taxes

(119)

273

Net income on non-GAAP basis

9,714

8,404

6,965

33,728

23,733

Net income on GAAP basis

8,518

4,140

4,324

23,126

5,895

Non-GAAP Adjustments:

Amortization of acquisition-related intangible assets

2,052

2,026

2,415

8,062

9,267

Stock-based compensation expense

2,195

2,322

1,314

7,568

5,670

Restructuring and other charges

154

213

369

667

1,787

Acquisition-related costs

216

549

Loss on debt extinguishment

138

157

(Gains) losses on investments

(6)

Gain from sale of business

(163)

Other

(15)

Non-GAAP tax reconciling adjustments (1)

(3,231)

(223)

(1,506)

(5,888)

123

(Income) loss from discontinued operations, net of income taxes

(119)

273

Other Adjustments:

Interest expense

741

754

864

3,072

3,796

Provision for income taxes on non-GAAP basis

1,582

1,368

1,064

5,491

3,625

Depreciation

148

142

156

574

593

Amortization of purchased intangibles and right-of-use assets

139

150

Adjusted EBITDA

12,218

10,702

9,089

43,004

31,897

Weighted-average shares used in per share calculations - diluted on GAAP basis

4,889

4,860

4,828

4,853

4,778

Non-GAAP adjustment (2)

112

Weighted-average shares used in per share calculations - diluted on non-GAAP basis

4,969

4,972

4,905

4,943

4,877

Net cash provided by operating activities

7,703

7,166

5,604

27,537

19,962

Purchases of property, plant and equipment

(237)

(142)

(122)

(623)

(548)

Free cash flow

7,466

7,024

5,482

26,914

19,414

Fiscal

Quarter

Ending

February 1,

Expected average diluted share count (3):

2026

Weighted-average shares used in per share calculation - diluted on GAAP basis

4,902

Non-GAAP adjustment (2)

Weighted-average shares used in per share calculation - diluted on non-GAAP basis

4,969

(1) For the fiscal quarter and fiscal year ended November 2, 2025, non-GAAP tax reconciling adjustments included a one-time discrete non-cash tax benefit of $2.1 billion from

the impact of lapses of statutes of limitations.

(2) Non-GAAP adjustment for the number of shares used in the diluted per share calculations excludes the impact of stock-based compensation expense expected to be incurred

in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method.

(3) Excludes the effects of potential share repurchases.

BROADCOM INC.

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

(IN MILLIONS)

November 2,

November 3,

2025

2024

ASSETS

Current assets:

Cash and cash equivalents

16,178

9,348

Trade accounts receivable, net

7,145

4,416

Inventory

2,270

1,760

Other current assets

5,980

4,071

Total current assets

31,573

19,595

Long-term assets:

Property, plant and equipment, net

2,530

2,521

Goodwill

97,801

97,873

Intangible assets, net

32,273

40,583

Other long-term assets

6,915

5,073

Total assets

171,092

165,645

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

1,560

1,662

Employee compensation and benefits

2,129

1,971

Short-term debt

3,152

1,271

Other current liabilities

11,673

11,793

Total current liabilities

18,514

16,697

Long-term liabilities:

Long-term debt

61,984

66,295

Other long-term liabilities

9,302

14,975

Total liabilities

89,800

97,967

Stockholders' equity:

Preferred stock

Common stock

Additional paid-in capital

71,308

67,466

Retained earnings

9,761

Accumulated other comprehensive income

218

207

Total stockholders' equity

81,292

67,678

Total liabilities and equity

171,092

165,645

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(IN MILLIONS)

Fiscal Quarter Ended

Fiscal Year Ended

November 2,

August 3,

November 3,

November 2,

November 3,

2025

2024

2025

2024

Cash flows from operating activities:

Net income

8,518

4,140

4,324

23,126

5,895

Adjustments to reconcile net income to net cash provided by operating activities:

Amortization of intangible and right-of-use assets

2,085

2,060

2,455

8,201

9,417

Depreciation

148

142

156

574

593

Stock-based compensation

2,195

2,322

1,314

7,568

5,741

Deferred taxes and other non-cash taxes

(3,025)

284

(868)

(4,008)

1,965

Loss on debt extinguishment

138

157

Non-cash interest expense

344

427

Other

(23)

138

404

Changes in assets and liabilities, net of acquisitions and disposals:

Trade accounts receivable, net

(651)

(937)

249

(2,717)

2,327

Inventory

(90)

(163)

134

(510)

150

Accounts payable

118

136

(85)

(118)

121

Employee compensation and benefits

410

511

196

300

Other current assets and current liabilities

(809)

(999)

(1,410)

(1,837)

(5,323)

Other long-term assets and long-term liabilities

(1,323)

(442)

(1,142)

(3,618)

(1,990)

Net cash provided by operating activities

7,703

7,166

5,604

27,537

19,962

Cash flows from investing activities:

Acquisitions of businesses, net of cash acquired

(25,978)

Proceeds from sales of businesses

300

3,485

Purchases of property, plant and equipment

(237)

(142)

(122)

(623)

(548)

Purchases of investments

(336)

(99)

(30)

(597)

(175)

Sales of investments

101

248

156

Other

105

(16)

(10)

Net cash provided by (used in) investing activities

(367)

(132)

(580)

(23,070)

Cash flows from financing activities:

Proceeds from long-term borrowings

4,971

6,960

4,969

15,666

39,954

Payments on debt obligations

(3,638)

(6,750)

(7,472)

(18,478)

(19,608)

Repayments of commercial paper, net

(488)

(3,373)

Payments of dividends

(2,797)

(2,786)

(2,484)

(11,142)

(9,814)

Repurchases of common stock - repurchase program

(2,450)

(7,176)

Shares repurchased for tax withholdings on vesting of equity awards

(58)

(1,204)

(3,860)

(5,216)

Issuance of common stock

103

126

221

190

Other

(27)

(7)

(11)

(84)

(63)

Net cash used in financing activities

(1,876)

(6,014)

(6,076)

(20,127)

(1,733)

Net change in cash and cash equivalents

5,460

1,246

(604)

6,830

(4,841)

Cash and cash equivalents at beginning of period

10,718

9,472

9,952

9,348

14,189

Cash and cash equivalents at end of period

16,178

10,718

9,348

16,178

9,348

Supplemental disclosure of cash flow information:

Cash paid for interest

699

602

738

2,672

3,250

Cash paid for income taxes

755

822

832

2,589

3,155

SOURCE Broadcom Inc.