Broadcom (AVGO) has reported sound financial results for its 2025 Q4, reporting a 28% year-over-year (YoY) revenue increase to $18 billion. The performance was primarily driven by a powerful 74% surge in its AI semiconductor revenue. Citing strong momentum and increased cash flows, the company issued a bullish forecast for the first quarter of 2026 and announced a 10% increase in its quarterly common stock dividend, marking the fifteenth consecutive annual dividend increase.
Key Financial Metrics
● Revenue: $18 billion, a 28% increase YoY.
● Net Income: $9.7 billion, a 39% increase YoY.
● Earnings Per Share (EPS): $1.95, a 37% increase YoY.
● Earnings Before Interest, Tax, Depreciation, & Amortisation (EBITDA): $12.2 billion, representing a strong 68% of revenue.
● Free Cash Flow: $7.5 billion, a 36% increase YoY.
● Quarterly Dividend: Increased by 10% to $0.65 per share.
Analysis & Outlook
The share price is up 38% year-to-date, reflecting characteristics typically associated with a blue-chip stock. A large, stable, and highly profitable market leader with a strong track record and a consistent commitment to growing shareholder returns. Broadcom’s Q4 results highlight this positioning, showing that the group is firmly embedded in the global AI infrastructure build-out, with its semiconductor solutions division delivering standout growth driven by surging demand for custom AI accelerators and Ethernet AI switches used in data centres. This operational strength translated into profitability and cash generation, reinforcing the quality and resilience of the business and supporting a further increase in the quarterly dividend. Looking ahead, management has signalled confidence that this momentum will carry into the next financial year, with guidance pointing to continued strong revenue growth and sustained high margins, reinforcing Broadcom’s status as a core, high-quality player within the global technology environment.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
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