Broadcom Inc. (NASDAQ: AVGO) delivered a record-setting $14.9 billion in revenue for Q1 2025, a 25% year-over-year increase, driven by surging demand for AI semiconductor solutions and infrastructure software. Adjusted EBITDA soared 41% YoY to $10.1 billion, representing 68% of revenue. Free cash flow also saw a significant 28% rise, reaching $6.0 billion.
The company’s AI semiconductor revenue surged 77% YoY to $4.1 billion, as hyperscalers continued to invest in XPUs and connectivity solutions. Meanwhile, infrastructure software revenue surged 47% to $6.7 billion, bolstered by Broadcom’s growing enterprise and cloud offerings. GAAP net income reached $5.5 billion, while non-GAAP net income stood at $7.8 billion. Looking ahead, Broadcom expects Q2 revenue of $14.9 billion, marking another 19% YoY increase.
Broadcom also reaffirmed its commitment to shareholder returns, paying out $2.8 billion in dividends in Q1 and declaring a quarterly dividend of $0.59 per share, payable on March 31, 2025. Cash flow from operations totaled $6.1 billion, with capital expenditures kept at $100 million. The company remains optimistic about continued AI-driven growth through the rest of the fiscal year.
Key Highlights:
• Q1 revenue: $14.9 billion, up 25% YoY
• AI semiconductor revenue: $4.1 billion, up 77% YoY
• Infrastructure software revenue: $6.7 billion, up 47% YoY
• Adjusted EBITDA: $10.1 billion, up 41% YoY
• Free cash flow: $6.0 billion, up 28% YoY
• GAAP net income: $5.5 billion
• Non-GAAP net income: $7.8 billion
• GAAP diluted EPS: $1.14; Non-GAAP EPS: $1.60
• Q2 revenue guidance: $14.9 billion, up 19% YoY
• Quarterly dividend: $0.59 per share, payable March 31, 2025
CEO Hock Tan highlighted Broadcom’s strong momentum, stating that Broadcom’s record first-quarter results reflect exceptional growth across AI and infrastructure software. He emphasized that hyperscaler partners continue to invest in cutting-edge AI solutions and expects further strength in AI semiconductor revenue in Q2 as demand for XPUs and high-performance connectivity accelerates.
