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Broadcom 8-K Report, Financial Results (Sep 4, 2025)

Reports
Earnings & Results·Other Events·Exhibits & Filings
Filing Date
Filed September 4, 2025
Period End
September 4, 2025
Security
AVGO
In the record · 2018–202610-K810-Q268-K124

AVGO filed 8 annual reports (10-K), 26 quarterly reports (10-Q) and 124 current reports (8-K) between 2018 and 2026.

  1. Deal closed8-K · Nov ’18Nov ’18
  2. Material agreement8-K · May ’20May ’20
  3. Leadership change8-K · Jul ’22Jul ’22
  4. Leadership change8-K · Feb ’24Feb ’24

01—Abstract

Summary

Summary of the 8-K filed September 4, 2025. Cited figures are marked; the original filing is the authoritative source.

Broadcom reported fiscal Q3 2025 (quarter ended August 3, 2025) revenue of $15.95 billiona, up 22% year over year, with a clear mix shift toward semiconductors (57% of revenue, up 26%) and infrastructure software (43%, up 17%).

GAAP net income was $4.14 billionb ($0.85 diluted EPS), while non-GAAP net income was $8.40 billion ($1.69 non-GAAP diluted EPS). The gap is driven largely by roughly $2.0 billion of quarterly acquisition-related intangible amortization and $2.3 billion of stock-based compensation. Adjusted EBITDA reached $10.70 billion, or 67% of revenue, up 30% year over year, and free cash flow was a record $7.02 billion, or 44% of revenue.

GAAP operating income of $5.89 billionc was roughly 55% above the prior-year quarter, which included restructuring and acquisition-related charges. The most important forward-looking item is management's Q4 fiscal 2025 guidance of approximately $17.4 billion in revenue (up 24% year over year) and Adjusted EBITDA of 67% of projected revenue. Management said AI semiconductor revenue is expected to rise to $6.2 billion in Q4 from $5.2 billion in Q3, which would mark eleven consecutive quarters of growth.

Q3 AI revenue grew 63% year over year. The company also declared a quarterly dividend of $0.59d per share, payable September 30, 2025 to holders of record on September 22, 2025. Dividends paid in the quarter totaled $2.79 billion, and cash and equivalents rose to $10.72 billion.

Total debt remains large, with long-term debt of $62.8 billion plus $1.4 billion of short-term debt, although debt declined from the prior fiscal year-end. Investors should note that the filing's Item 2.02 information is furnished rather than filed, so it is not subject to Exchange Act liability. Non-GAAP metrics exclude significant recurring items such as stock-based compensation, which is a real cost to shareholders.

Q3 GAAP results also benefited from a $163 million gain on a business sale, and the Q3 GAAP tax provision was low at $1.15 billion. Diluted shares rose to 4.86 billion from 4.66 billion a year earlier, partly reflecting the VMware acquisition and stock compensation. Share repurchases were zero in Q3 after $2.45 billion in Q2.

02—Key points

Key Highlights

  1. Q3 FY25 revenue of $15.95B, up 22% YoY; semiconductor solutions $9.17B (+26%) and infrastructure software $6.79B (+17%).
  2. GAAP diluted EPS $0.85 vs. non-GAAP diluted EPS $1.69; GAAP net income $4.14B vs. non-GAAP $8.40B, with the gap driven mainly by acquisition-related amortization and stock-based compensation.
  3. Adjusted EBITDA of $10.70B (67% of revenue), up 30% YoY, reflecting strong operating leverage.
  4. Record free cash flow of $7.02B (44% of revenue), up 47% YoY, on operating cash flow of $7.17B and capex of only $142M.
  5. Q4 FY25 guidance: revenue of approximately $17.4B (+24% YoY) and Adjusted EBITDA of 67% of projected revenue; AI semiconductor revenue expected at $6.2B, up from $5.2B in Q3.
  6. Quarterly dividend of $0.59 per share declared, payable September 30, 2025 (record date September 22, 2025); $2.79B paid in Q3.
  7. No share repurchases in Q3 versus $2.45B in Q2; cash and equivalents rose to $10.72B, while long-term debt declined to $62.8B from $66.3B at fiscal year-end 2024.

03—Questions

Frequently Asked Questions

  1. How strong was Broadcom's Q3 FY2025 performance compared with the prior year?

    Revenue rose 22% to $15.95B, GAAP operating income rose to $5.89B from $3.79B, and Adjusted EBITDA rose 30% to $10.70B. Semiconductor revenue grew 26% and infrastructure software grew 17%. The prior-year GAAP results were depressed by a $4.5B discrete tax charge and discontinued operations losses, so the GAAP net income comparison is distorted.

  2. What is management guiding for Q4 FY2025?

    Management expects revenue of approximately $17.4B, up 24% YoY, and Adjusted EBITDA of 67% of projected revenue. The company expects AI semiconductor revenue to reach $6.2B, up from $5.2B in Q3. Guidance is an estimate and actual results may differ materially.

  3. Is the dividend safe, and what is the payout?

    The $0.59 quarterly dividend is unchanged and costs about $2.8B per quarter. Q3 free cash flow of $7.0B covered the dividend roughly 2.5 times, which suggests the payout is currently well supported by cash generation. Dividend coverage on a GAAP earnings basis is also adequate at $4.14B of net income, though that figure was boosted by non-recurring items.

  4. Why is there such a large gap between GAAP and non-GAAP earnings?

    Non-GAAP results exclude about $2.0B of quarterly amortization of acquisition-related intangibles, which stems largely from past deals including VMware, and $2.3B of stock-based compensation. Investors should weigh stock-based compensation as a real economic cost, since it dilutes shareholders. Diluted share count rose to 4.86B from 4.66B a year earlier.

  5. Are there any one-time items affecting the Q3 results?

    Yes. GAAP results include a $163M gain from the sale of a business, which was excluded from non-GAAP results. Restructuring and other charges of $213M were also excluded, and acquisition-related costs of $7M. The GAAP tax provision of $1.15B was affected by tax items, and the filing does not provide a full breakdown of the tax effect in Q3.

04—Continue

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