Broadcom Inc. announced its first quarter fiscal year 2025 financial results on March 6, 2025, reporting consolidated revenue of $14.916 billion, a 25% increase year-over-year, surpassing analyst estimates of $14.61 billion. This growth was fueled by a 77% year-over-year surge in AI revenue to $4.1 billion and a 47% increase in infrastructure software revenue to $6.704 billion.
The company's semiconductor solutions segment also contributed to growth, with revenue increasing 11% year-over-year to $8.212 billion. Broadcom reported non-GAAP diluted earnings per share of $1.60, exceeding analyst expectations of $1.49. Adjusted EBITDA reached $10.083 billion, up 41% year-over-year, and free cash flow was $6.013 billion, a 28% increase year-over-year.
For the second quarter of fiscal year 2025, Broadcom provided guidance for consolidated revenue of approximately $14.9 billion, exceeding the average analyst forecast of $14.76 billion. The company expects AI semiconductor revenue to reach $4.4 billion in the upcoming quarter.
CEO Hock Tan provided an update on AI customer engagements, stating that Broadcom is "deeply engaged" with two additional hyperscalers and is working with four other potential customers to develop custom AI chips. This expands on the three large cloud customers previously mentioned, indicating a growing pipeline for its custom silicon business.
The Board of Directors approved a quarterly cash dividend of $0.59 per share, payable on March 31, 2025. This consistent dividend payout, alongside strong financial performance and strategic expansion in AI, underscores Broadcom's commitment to shareholder returns and its position as a leader in AI infrastructure.
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