Broadcom Inc. announced its second quarter fiscal year 2025 financial results on June 5, 2025, reporting record consolidated net revenue of $15.004 billion, a 20% increase year-over-year, surpassing analyst estimates of $14.99 billion. This growth was fueled by continued momentum in AI semiconductor solutions and VMware.
AI revenue for the quarter exceeded $4.4 billion, marking a 46% increase year-over-year, driven by robust demand for AI networking. The semiconductor solutions segment generated $8.408 billion in revenue, up 17% year-over-year, while the infrastructure software segment delivered $6.596 billion, a 25% increase year-over-year.
Broadcom reported non-GAAP diluted earnings per share of $1.58, exceeding analyst estimates of $1.56. Adjusted EBITDA increased 35% year-over-year to $10.001 billion, and free cash flow was a record $6.411 billion, up 44% year-over-year, reflecting the company's strong business model.
For the third quarter of fiscal year 2025, Broadcom provided guidance for consolidated revenue of approximately $15.8 billion, aligning with analyst estimates. The company expects AI semiconductor revenue to accelerate to $5.1 billion, representing a significant 60% increase year-over-year, marking ten consecutive quarters of growth.
CEO Hock Tan reiterated confidence in the AI segment, stating that growth in AI semiconductor revenue is expected to continue through fiscal 2026. He also noted excellent progress on the multiyear journey of enabling the company's three existing customers and four prospects to deploy custom AI accelerators.
In line with its commitment to shareholder returns, Broadcom returned $7.0 billion to shareholders in the second quarter, comprising $2.8 billion in cash dividends and $4.2 billion in stock repurchases. The Board of Directors approved a quarterly cash dividend of $0.59 per share, payable on June 30, 2025.
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