10-KPeriod: FY2025

Broadcom Inc. Annual Report, Year Ended Nov 2, 2025

Filed December 18, 2025For Securities:AVGO

Summary

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 billion. 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 billion, 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 billion) used for dividends and stock repurchases, while also managing its substantial debt load.

Financial Highlights

56 data points
Beta

Revenue

$63.89B

67.8% Gross Margin

Net Income

$23.13B

36.2% Net Margin

EPS (Diluted)

$4.77

Total Assets

$171.09B

Cash & Equivalents

$16.18B

Free Cash Flow

$26.91B

Financial Statements
Beta
Revenue$63.89B
Cost of Revenue$20.59B
Gross Profit$43.29B
R&D Expenses$10.98B
SG&A Expenses$4.21B
Operating Expenses$17.81B
Operating Income$25.48B
Net Income$23.13B
EPS (Basic)$4.91
EPS (Diluted)$4.77
Shares Outstanding (Basic)4.71B
Shares Outstanding (Diluted)4.85B

Key Highlights

  • 1Net 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%).
  • 2Operating income more than doubled to $25.5 billion, with an operating margin expanding to 40% from 26% in the prior year.
  • 3Gross margin improved to 68% from 63%, attributed to higher software revenue, strong AI semiconductor demand, and improved infrastructure software margins post-VMware integration.
  • 4The company generated $27.5 billion in cash from operations, supporting significant capital returns to shareholders.
  • 5Broadcom paid $11.1 billion in dividends and repurchased $2.5 billion of common stock during the fiscal year.
  • 6Despite substantial debt, interest expense decreased due to debt refinancing and reduction in outstanding balances.

Frequently Asked Questions

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.

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.

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.

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.