Broadcom reported a strong QQ1 2025, with revenue of USD 14.916 billion, marking a 19.5% year-over-year increase and a 6.1% sequential rise. The quarterly results feature substantial margin expansion, evidenced by a gross margin of approximately 68.0% and an operating margin of about 42.0%, yielding an EBITDA of USD 6.26 billion. Net income reached USD 5.503 billion, translating to non-GAAP and GAAP earnings momentum consistent with the top-line strength. Free cash flow was robust at USD 6.013 billion, supported by USD 6.113 billion of operating cash flow and disciplined capital expenditure. Management has continued to deploy capital toward value-enhancing activities, including USD 2.036 billion of share repurchases and USD 2.774 billion in dividends, while maintaining a solid cash balance of USD 9.307 billion. The mix of semiconductors and software positions Broadcom to benefit from data center, cloud, and AI-driven demand, yet the stock trades at a high multiple reflective of its premium growth profile and software-led strategy.
Key Performance Indicators
Revenue
Increasing
14.92B
QoQ: 6.13% | YoY: 19.45%
Gross Profit
Increasing
10.15B
68.01% margin
QoQ: 12.70% | YoY: 30.47%
Operating Income
Increasing
6.26B
QoQ: 35.29% | YoY: 111.13%
Net Income
Increasing
5.50B
QoQ: 27.27% | YoY: 159.45%
EPS
Increasing
1.17
QoQ: 27.17% | YoY: 154.35%
Revenue Trend
Margin Analysis
Financial Highlights
Summary of key QQ1 2025 metrics (USD):
- Revenue: USD 14.916B; YoY +19.45%; QoQ +6.13%.
- Gross Profit: USD 10.145B; Gross Margin ~68.0%; YoY +30.47%; QoQ +12.70%.
- Operating Income: USD 6.260B; Operating Margin ~41.97%; YoY +111.13%; QoQ +35.29%.
- Net Income: USD 5.503B; Net Margin ~36.89%; YoY +159.45%; QoQ +27.27%.
- EPS (basic/diluted): USD 1.17 / USD 1.14; YoY EPS growth ~+154.35%; QoQ +27.17%.
- EBITDA: USD 6.26B; EBITDA Margin ~42.0% (EBITDA as a proxy for cash-generating capacity).
- Free Cash Flow (FCF): USD 6.013B; Operating Cash Flow: USD 6.113B; Capex: USD 0.100B; FCF yield supported by robust working capital management.
- Balance sheet highlights: Cash and cash equivalents USD 9.307B; Total debt USD 66.579B; Net debt USD 57.273B; Debt to equity ~0.95; Interest coverage ~7.17x.
- Cash flow and capital allocation: Net cash provided by operating activities USD 6.113B; Net cash used for financing activities USD 5.98B; Dividends paid USD 2.774B; Share repurchases USD 2.036B; Net change in cash ~ -USD 0.041B; Cash at period end USD 9.307B.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
14.92B
19.45%
6.13%
Gross Profit
10.15B
30.47%
12.70%
Operating Income
6.26B
111.13%
35.29%
Net Income
5.50B
159.45%
27.27%
EPS
1.17
154.35%
27.17%
Key Financial Ratios
Gross Profit Margin
Excellent
68.00%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
42.00%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
36.90%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
3.33%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
7.89%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.00
Current ratio meets minimum requirements but limited cushion
Broadcom Inc (0YXG.L) QQ3 2024 Results — Revenue Up 9% YoY to USD 13.07B; Net Loss Driven by Tax; Robust Free Cash Flow Supports Leverage and Capita...