AI Semiconductor Revenue Surges 46%, Driving $15B in Sales and $6.4B in Free Cash Flow
Broadcom (AVGO) delivered a strong financial performance in the second quarter of fiscal 2025, fueled by growing demand for its AI semiconductor solutions and VMware-related software. The company reported record revenue of $15.0 billion, up 20% year-over-year.
GAAP net income for the quarter reached $4.97 billion, while non-GAAP net income totaled $7.79 billion. Adjusted EBITDA came in at $10.0 billion, representing 67% of revenue and marking a 35% increase from the same period last year. Diluted earnings per share (EPS) were $1.03 on a GAAP basis and $1.58 on a non-GAAP basis.
AI semiconductor revenue rose 46% year-over-year to $4.4 billion. “We expect AI semiconductor revenue to accelerate to $5.1 billion in Q3, delivering ten consecutive quarters of growth as our hyperscale partners continue to invest,” said Hock Tan, Broadcom’s CEO.
The company generated $6.6 billion in operating cash and $6.4 billion in free cash flow, equivalent to 43% of revenue—another record. Broadcom returned $7.0 billion to shareholders in the quarter through $2.8 billion in dividends and $4.2 billion in share repurchases.
Looking ahead, Broadcom expects third-quarter revenue to hit $15.8 billion, up 21% year-over-year, with an adjusted EBITDA margin of at least 66%.
“Our strong results and guidance reflect the continued strength of our business model and disciplined execution,” said CFO Kirsten Spears. The company ended the quarter with $9.47 billion in cash and equivalents.
Broadcom’s board also declared a quarterly dividend of $0.59 per share, reinforcing its commitment to shareholder returns.
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