AVGO
Broadcom Inc
Q1 2025 Report
Broadcom Inc (AVGO) Q1 2025 Financial Results: Record Revenue and Strong Growth in AI Segment...
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Executive Summary
In Q2 2024, Broadcom Inc (AVGO) reported robust financials with total revenue reaching $12.5 billion, a 43% year-over-year increase driven significantly by the inclusion of VMware's financial performance. Excluding VMware, organic growth was measured at 12%. The standout performance was in AI-related revenue, soaring by 280% to $3.1 billion, which underscored the strength of Broadcom's position in the rapidly evolving semiconductor landscape. Operating income rose to $3.31 billion with a margin of 26.5%, while net income stood at $2.12 billion, showcasing a healthy margin of 17%. Management continues to emphasize the transition to AI, projecting fiscal 2024 revenue guidance raised to $51 billion, cutting costs post-acquisition, and an optimistic view on future cash flows as integration efforts with VMware yield operational efficiencies.
Key Performance Indicators
Revenue
12.49B
QoQ: 4.40% | YoY:40.68%
Gross Profit
7.00B
56.07% margin
QoQ: 4.90% | YoY:13.60%
Operating Income
3.31B
QoQ: 18.43% | YoY:-14.16%
Net Income
2.12B
QoQ: 60.08% | YoY:-35.79%
EPS
0.46
QoQ: 58.62% | YoY:-42.50%
Revenue Trend
Margin Analysis
Key Insights
- Revenue: $12.5 billion (up 43% YoY, 12% excluding VMware contributions)
- Gross Profit: $7 billion with a gross margin of 56%
- Operating Income: $3.31 billion (operating margin of 26.5%)
- Net Income: $2.12 billion (net margin of 17%)
- EPS: $0.46 (diluted)