1. AVGO reported Q4 revenue of $18 billion, up 28% year-over-year. 2. AI semiconductor sales surged 74%, driving significant growth. 3. Q1 FY2026 revenue guidance is around $19.1 billion, a 28% increase. 4. Free cash flow reached $7.5 billion, representing 41% of revenue. 5. AVGO raised quarterly dividend by 10% to $0.65 per share.
FAQ
Why Very Bullish?
The strong revenue growth and robust outlook suggest increased confidence in AVGO's performance. Similar past trends led to stock rallies following quarterly earnings beats.
How important is it?
The combination of impressive earnings growth, strong cash flow, and dividend increase indicates potential for stock price appreciation. This financial stability and growth in AI segments are particularly appealing to investors.
Why Short Term?
Immediate positive market reactions to strong earnings reports typically influence stock prices shortly after announcements. Recently, stocks have reacted favorably to similar results from semiconductor companies.
Broadcom Inc. Reports Impressive Fourth Quarter and Fiscal Year 2025 Financial Results
Broadcom Inc. (Nasdaq: AVGO), a leading global technology company specializing in semiconductor and infrastructure software solutions, announced today its financial results for the fourth quarter and fiscal year ended November 2, 2025. The results reveal a strong growth trajectory, alongside a dividend increase amid a robust operational framework.
Key Financial Highlights for Q4 and Fiscal Year 2025
Fourth Quarter Financial Performance
Broadcom's revenue for the fourth quarter reached $18,015 million, reflecting a significant 28% increase compared to the same period last year. The company's GAAP net income stood at $8,518 million, while the Non-GAAP net income was recorded at $9,714 million.
Adjusted EBITDA and Free Cash Flow
The company reported an Adjusted EBITDA of $12,218 million for Q4, accounting for 68% of revenue. Additionally, cash flow from operations was impressive at $7,703 million, which led to a free cash flow of $7,466 million (representing 41% of revenue).
Quarterly Dividend Increase
In light of its strong financial performance, Broadcom announced a 10% increase in its quarterly common stock dividend, bringing it to $0.65 per share. This marks the fifteenth consecutive annual dividend increase since the company initiated dividends in fiscal year 2011.
First Quarter Fiscal Year 2026 Guidance
Looking ahead, Broadcom forecasts a revenue guidance of approximately $19.1 billion for the first quarter of fiscal year 2026, which indicates a 28% year-over-year increase. The company also projects an Adjusted EBITDA of 67% of the expected revenue for this period.
CEO Commentary
Hock Tan, President and CEO of Broadcom, commented on the company’s strong momentum, particularly in the AI sector, stating, “In Q4, record revenue of $18.0 billion grew 28% year-over-year, driven primarily by AI semiconductor revenue increasing 74% year-over-year. We expect this trend to continue, predicting a doubling of AI semiconductor revenue to $8.2 billion in Q1 2026.”
CFO Insights
Kirsten Spears, CFO of Broadcom, highlighted the significant cash flow metrics, “In fiscal year 2025, adjusted EBITDA increased 35% year-over-year to $43.0 billion, and our free cash flow was notably strong at $26.9 billion.” She further emphasized the company’s consistent returns to shareholders through the upcoming dividend hikes.
Conclusion
With its robust financial performance for Q4 and fiscal year 2025, alongside promising guidance for the upcoming quarter, Broadcom Inc. (AVGO) demonstrates a strong position for sustained growth and shareholder returns. As the company continues to leverage advancements in AI technology and infrastructure solutions, it remains a key player in the semiconductor industry.