Broadcom(US:AVGO) ZACKS·2025-12-12 16:46Core Insights - Broadcom (AVGO) reported fourth-quarter fiscal 2025 non-GAAP earnings of $1.95 per share, exceeding the Zacks Consensus Estimate by 4.3% and increasing 37.3% year over year [2][8] - Revenues rose 28.2% year over year to $18.02 billion, surpassing the Zacks Consensus Estimate by 2.94% [2][8] - AVGO shares experienced a decline of over 5% following the earnings report, despite a 128.8% appreciation over the past 12 months compared to the Zacks Computer & Technology sector's 25.4% return [2] Financial Performance - Semiconductor solutions revenues, accounting for 61.5% of net revenues, reached $11.07 billion, a 35% increase year over year, driven by a 74% surge in AI revenues [3] - Infrastructure software revenues, making up 38.5% of net revenues, increased 19% year over year to $6.94 billion [3] - Non-GAAP gross margin was 78%, up 100 basis points year over year, while adjusted EBITDA rose 34% year over year to $12.22 billion, with an adjusted EBITDA margin of 67.8%, up 310 basis points [4] Balance Sheet & Cash Flow - As of November 2, 2025, cash and cash equivalents stood at $16.18 billion, up from $10.72 billion as of August 3, 2025 [5] - Total debt was $65.14 billion, slightly up from $64.23 billion as of August 3, 2025 [5] - Cash flow from operations was $7.70 billion, compared to $7.17 billion in the previous quarter, with free cash flow at $7.47 billion, up from $7.02 billion [5] Dividend Information - On September 30, 2025, AVGO paid a cash dividend of 59 cents per share, totaling $2.80 billion, and raised its quarterly dividend payout by 10% to 65 cents per share [6] Guidance - For the first quarter of fiscal 2026, Broadcom expects revenues of $19.1 billion, with AI revenues projected to double year over year to $8.2 billion, driven by strong demand for custom AI accelerators and Ethernet AI switches [7][8] - The adjusted EBITDA margin is anticipated to be 67% for the first quarter of fiscal 2026 [9]