Broadcom reported a solid QQ2 2025, delivering revenue of $15.004 billion and a robust profitability profile driven by strength across Semiconductor Solutions and Infrastructure Software. The gross profit of $10.197 billion produced a gross margin of 67.96%, while operating income of $5.829 billion yielded an operating margin of 38.85%. Net income reached $4.965 billion with earnings per share (diluted) of $1.03, reflecting substantial profitability on an annualized basis and an improving mix of higher-margin software offerings alongside core semiconductor products.
Cash generation remained a key driver, with operating cash flow of $6.555 billion and free cash flow of $6.411 billion. Broadcom allocated capital toward shareholder returns, returning $4.216 billion through share repurchases and $2.785 billion in cash dividends, while maintaining a strong cash balance of $9.472 billion. The balance sheet remains asset-rich with total assets of $164.63 billion and total stockholders’ equity of $69.59 billion, yet the company carries a significant debt load (net debt of ~$57.81 billion) largely reflecting historical acquisitions and ongoing leverage in the capital structure. Investors should monitor deleveraging progress against sustained FCF generation and any shifts in demand across data-center, networking, and software end-markets.
Overall, the QQ2 2025 results highlight Broadcom’s ability to translate a diversified product mix into meaningful profitability and free cash flow, supporting an attractive capital return model. However, the high leverage level and semiconductor cycle sensitivity imply exposure to macro and cyclical risks, which will be critical to assess as Broadcom navigates AI-related data center demand and software mix dynamics moving into the second half of 2025 and beyond.