01—Abstract
Summary
Summary of the 10-K filed December 18, 2025. Cited figures are marked; the original filing is the authoritative source.
Broadcom Inc. reported strong performance for the fiscal year ended November 2, 2025, with net revenue increasing by 24% year-over-year to $63.9 billiona.
This growth was driven by robust demand across both its Semiconductor Solutions and Infrastructure Software segments, with increases of 22% and 26% respectively. The company's operating income saw a significant improvement, more than doubling to $25.5 billionb, reflecting improved gross margins and effective cost management, particularly lower selling, general, and administrative expenses. The acquisition of VMware continues to be a significant factor, with the Infrastructure Software segment showing strong demand for products like VMware Cloud Foundation.
The Semiconductor Solutions segment benefited from strong demand in networking, specifically custom AI accelerators and AI networking products. Broadcom also demonstrated a commitment to returning capital to shareholders, with significant cash generated from operations ($27.5 billionc) used for dividends and stock repurchases, while also managing its substantial debt load.
02—Key points
Key Highlights
- Net revenue surged by 24% to $63.9 billion, driven by strong performance in both Semiconductor Solutions ($36.9B, +22%) and Infrastructure Software ($27.0B, +26%).
- Operating income more than doubled to $25.5 billion, with an operating margin expanding to 40% from 26% in the prior year.
- Gross margin improved to 68% from 63%, attributed to higher software revenue, strong AI semiconductor demand, and improved infrastructure software margins post-VMware integration.
- The company generated $27.5 billion in cash from operations, supporting significant capital returns to shareholders.
- Broadcom paid $11.1 billion in dividends and repurchased $2.5 billion of common stock during the fiscal year.
- Despite substantial debt, interest expense decreased due to debt refinancing and reduction in outstanding balances.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Broadcom kept $0.36.
- Revenue$63.89B100.0%
- Cost of revenue−$20.59B32.2%
- Gross profit$43.29B67.8%
- Operating costs−$17.81B27.9%
- Operating income$25.48B39.9%
- Interest, other & tax−$2.36B3.7%
- Net income$23.13B36.2%
Where FY2025 revenue went
$63.89B- Net income: $23.13B, 36% of revenue
- Cost of revenue: $20.59B, 32% of revenue
- R&D: $10.98B, 17% of revenue
- SG&A: $4.21B, 6.6% of revenue
- Other operating costs: $2.62B, 4.1% of revenue
- Interest, other & tax: $2.36B, 3.7% of revenue
Kept 36% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed December 18, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $63.89B$51.57B | +23.9% |
| Cost of Revenue | $20.59B$19.07B | +8.0% |
| Gross Profit | $43.29B$32.51B | +33.2% |
| R&D Expenses | $10.98B$9.31B | +17.9% |
| SG&A Expenses | $4.21B$4.96B | −15.1% |
| Operating Expenses | $17.81B$19.05B | −6.5% |
| Operating Income | $25.48B$13.46B | +89.3% |
| Net Income | $23.13B$5.89B | +292.3% |
| EPS (Basic) | $4.91$1.27 | +286.6% |
| EPS (Diluted) | $4.77$1.23 | +287.8% |
| Shares Outstanding (Basic) | 4.71B4.62B | +1.9% |
| Shares Outstanding (Diluted) | 4.85B4.78B | +1.6% |
05—Questions
Frequently Asked Questions
What were the main drivers of Broadcom's revenue growth in fiscal year 2025?
Broadcom's revenue growth was primarily driven by strong demand in its Semiconductor Solutions segment, particularly for AI accelerators and networking products, and in its Infrastructure Software segment, fueled by VMware Cloud Foundation (VCF) and subscription-based software offerings. Both segments experienced double-digit revenue increases.
How did the VMware acquisition impact Broadcom's financial performance?
The VMware acquisition significantly boosted Broadcom's Infrastructure Software segment, contributing to its 26% revenue growth. The integration of VMware also led to improved gross margins for the software segment and was a key factor in the overall increase in operating income. The company incurred VMware acquisition-related costs in the prior year, which were lower in fiscal year 2025.
What is Broadcom's stance on returning capital to shareholders?
Broadcom continues to prioritize returning capital to shareholders. In fiscal year 2025, the company paid $11.1 billion in cash dividends and repurchased $2.5 billion of its common stock. This is supported by its strong operational cash generation, which reached $27.5 billion for the year.
What are the key risks facing Broadcom according to the 10-K filing?
Key risks include adverse global economic conditions, cyclicality in the semiconductor industry, significant customer concentration (with top five customers accounting for 40% of revenue), dependence on a limited number of contract manufacturers and suppliers, cybersecurity threats, and the challenges associated with integrating acquired businesses and managing substantial indebtedness.
06—Continue